Bankia shares tumbles 20pc after rescue Following the cash injection, the Spanish state owns 68.4pc of Bankia, with the rest held by former holders of preference shares and hybrid debt, often small savers who were mis-sold these complex financial instruments and were forced to swap them at a discount for ordinary shares. Most of them were expected to sell these new shares on Tuesday to try to recoup part of their money, adding downward pressure to a stock which lost more than 50pc last week when institutional investors triggered a mass sell-off as they received their shares. Further pressure will come from a recession which economists expect to last at least another two quarters. The bank also needs to pay back public aid and cheap European Central Bank (ECB) loans received last year and faces a possible new round of provisioning to cover losses on the refinanced loans portfolios. Prospects for the bank are also clouded by uncertainty over government plans for handling state-owned banks and potential risks from arbitration over the mis-selling of preference shares and hybrid debt which it could have to settle in cash. Yet Bankia Chairman Jose Ignacio Goirigolzarri remains positive, saying last week the stock price should eventually settle at around 0.7 to 0.8 euros, a valuation in line with those of Spanish peers which all have a share price of between 0.7 to 0.8 times their book value. Bankia should benefit from the clean-up of its property business, a strategy to sell non-core assets and a likely comeback within Spain's blue-chip IBEX 35 index.