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.
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