December 8, 2015 / 2:12 PM / 3 years ago

Shares in Monte Paschi suspended from trading after sharp drop

MILAN (Reuters) - Shares in Banca Monte dei Paschi di Siena (BMPS.MI) were suspended from trading on Tuesday after hitting a new all-time low, with Italian banking shares hit by a sell-off as an expected wave of consolidation has so far failed to materialize.

A logo of Monte dei Paschi di Siena bank is seen on the ground in downtown Siena, November 5, 2014. REUTERS/Giampiero Sposito

By 1356 GMT, the DJ Stoxx index of European banks .SX7P lost 2.4 percent.

With a 5.35 percent drop ahead of the trading suspension, Monte dei Paschi is the worst performer on Italy’s blue-chip stock index .FTMIB. Banca Popolare dell’Emilia Romagna (EMII.MI) follows with a 3.7 percent drop.

Traders mention concerns about Italian banks as a consolidation process aimed at strengthening a sector weakened by a three-year recession has stalled.

Reporting by Andrea Mandala, writing by Valentina Za, editing by Agnieszka Flak

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