Sun. Feb 23rd, 2020

Dia suffers a new stock market crash and falls to historic lows

Dia sufre un nuevo desplome en bolsa y cae a mínimos históricos

The supermarket chain Day Tuesday suffers a new black day in the markets, with falls above 10%, after the unfortunate day of Monday, when it fell 42% after cutting its earnings forecasts and suspend the dividend.

The losses in the Spanish parquet touched 13% after one hour of exchanges, although they reached 17%. The value fell below the euro, to historic lows.

Worst perspective

Behind the fall there are several factors. First, the fact that it has acknowledged that it will earn less, passing the gross operating result of 568 million expected at first to a range of 350 to 400 million euros. To that is added the suspension of the dividend for 2019, alarming its investors.

Second, before it reviewed the results, a report by JP Morgan had lowered its target price and profit horizon, claiming that it is having a worse performance than its competitors.

The figure of Fridman

In the third place, the accounting blow provoked by the Argentine market, with a galloping inflation, and the Brazilian, which does not quite take off, weigh on its international business.

Finally, the maneuvers of the Russian tycoon Mikhail Fridman, who has 29% of the company and who seeks to take over the entire group, but reducing the purchase price in case of launching an OPA, interfere.

Fridman placed yesterday in the council a man of his confidence, Stephan DuCharme, after the resignation of the president Maria Llopis.

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