Spain's risk premium rises after Catalan lawmakers declare independence

The Spanish risk premium has shot up on Friday and the Spanish stock market index dropped after the parliament of Spain's northeastern region of Catalonia unilaterally declared independence.

The Spanish risk premium climbed to 120 points, rising from 111 points in early trading to 117 points at mid-session and then the 120 points after the declaration, Xinhua news agency reported.

Meanwhile, Spain's stock market index Ibex-35 was down 1.92 per cent after the declaration, falling to 10,155 points.

Spain's bank Banc Sabadell led fell, losing 6.05 per cent, followed by airline group IAG, Spain's third largest bank CaixaBank, Spain's second-largest bank BBVA and supermarket chain DIA that lost 5.45 per cent, 4.1 per cent, 3.39 per cent and 3.2 per cent respectively.

Motorways operator Abertis led rises advancing 0.45 per cent, followed by chemical and pharmaceutical company Grifols and casing company Viscofan that rose 0.2 per cent and 0.08 per cent respectively.

--IANS

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