[ARTICLE] Investors shy away from market darling Magnit as Russia’s retail sector competition toughens

Magnit

Have investors fallen out of love with Magnit, the star of Russia’s retail sector for many years and one of the most profitable retailer in the world?

The stock was a must-have as the retailer that uniquely shunned Moscow went from strength to strength driving up earnings which were over $10bn last year. However, last year the stock was flat between January and December, while the market as a whole was up over 50%.

In London, the company’s share price went down throughout 2015 and kept fluttering in 2016, losing serious ground to its main competitor, X5: in April 2015, Magnit’s shares were worth $58, while X5’s shares sold at $18. Today, the price is closer to $40 and $30 respectively. Shares in Magnit have also been on a downward trend at the ruble-denominated Moscow Interbank Currency Exchange (MICEX) since the beginning of the year.

Vous pouvez lire la suite de cet article sur le site de bne IntelliNews.

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