Rising interest rates and fears of overbuilding sees Spanish developers lose up to 65% of their share value

Spanish developers have seen up to 65% of their share price wiped out after panicked trading on the Spanish stock exchange.

Panic has swept through the construction sector of the Spanish bourse over the past week amid growing signs that the market is suffering from overbuilding and rising interest rates.

The frantic trading was triggered by a dramatic fall in the share price of Astroc, owned by tycoon Enrique Banuelos, which had 60% of its stock market value wiped out. Concern that Astroc was likely to be followed by other companies prompted share price drops for other previously bullish construction companies.