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 Barclays Shares Dropped 6% on Tuesday

British global universal bank shares dropped 6% in early trading on Tuesday. This drop was mainly due to an investor selling $1.2 billion in stock at a discount overnight to the lender.  An anonymous investor sold 599 million shares promoted by Goldman Sachs. The shares are equivalent to a 3.6% stake.

This sale was a blow to British multinational universal bank, just a day after it was revealed that it had oversold structured products in the United States, leading to losses estimated at £450 million. Barclays stake dropped 3.3% to 115.22 pence at 05.04 a.m. ET on Tuesday. The bank had fallen 4% on the bank after it sold billions of pounds worth of securities for a year.

A spokesperson said that two exchange-traded notes were connected to crude oil, and market volatility are among the instruments involved. This month, the bank stopped sales and issuance of both. On Tuesday, the British multinational universal bank said that the deal was sold for $1.96, near the top of the target range of 147.50 pence to 150.75 pence, but it still represented a discount of more than 6% on Monday’s closing price, putting downward pressure on the stock. Reuters said that sale was higher than 575 million shares on Monday.

Qatar Investment Authority and Blackrock are the 3% stakeholders of the bank. When Blackrock was questioned, they declined to comment on it. The bank has said it would have to delay a planned $1.3 billion share buyback because of the loss on US structured products.

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