Bulgaria's First Investment Bank shares leap after state reassurances

First Investment Bank AD

30/06/2014 08:33

SOFIA, June 30 (Reuters) - Shares in Bulgaria's First 
Investment Bank  5F4.BB  jumped 33.94 percent on low volume in 
early trade on Monday after the president gave reassurances that 
citizens' bank deposits were safe despite runs on two major 
lenders. 
    The share price of Bulgaria's third largest lender tumbled 
by about 24 percent on Friday as jittery depositors spooked by 
an earlier bank run on Corporate Commercial Bank (Corpbank) 
 6C9.BB  rushed to withdraw savings. 
    "We see a recovery of trust in the market. The pick-up in 
the share price of First Investment Bank reflects a necessary 
correction after last week's plunge and is also a result of the 
country's resolve to support the banking system", a trader with 
Sofia-based Karoll Brokerage told Reuters. 
    President Rosen Plevneliev, other senior politicians and the 
central bank have been trying to reassure Bulgarians that their 
savings are safe and backed by state guarantees. 
 
 (Reporting by Tsvetelia Tsolova, writing by Gareth Jones) 
 ((gareth.jones@thomsonreuters.com; +49 30  2888 5214; Reuters 
Messaging: gareth.jones.thomsonreuters.com@reuters.net)) 
 
Keywords: BULGARIA FIRSTINVESTMENT/STOCKS