Simultaneous falling stock price of the retailer and the Bank related to the total pressure on the retail sector, says a senior analyst on the consumer sector, “ATON” Victor Dima. “All players of the sector under pressure and the fall in the value of securities reflects, first and foremost, the overall negative attitude of investors to the sector of food retailing,” explains the analyst.
In addition, the collapse of the stock may be due to sales of several large players who for some reason decided to reduce their positions in the securities of “Magnit”, said Viktor Dima. This, according to him, evidenced by the increasing market-shares of the retailer.
So, if in September the trading volume for these securities on Masuria was approximately 200 000-300 000 shares per day for the last 2 weeks, this figure rose to 300 000 — 700 000 stock, and in the last two days he was over 700,000 papers a day. “That is, the market formed a “canopy” because of the reduction of positions by large shareholders,” explains the analyst.
The shares of VTB, in turn, can decline due to the negative dynamics of papers “the Magnet,” says senior analyst of “ATON” Michael Ganelin. “The fall in the value of the retailer leads to the revaluation of investments VTB in the shares of “Magnet”, and may lead to decline in net profit VTB for the year, and worried investors,” — says the financier.
Senior analyst at BCS Capital Sergei Suverov said that VTB shares fall on expectations of U.S. sanctions against Russian state-owned banks, as well as in connection with publications on the treatment of VTB to the authorities for help due to the tightening of capital requirements, which in 2019 planned to introduce CBR.
Is it worth buying “for growth”
Interviewed by Forbes, analysts are skeptical regarding the medium-term prospects of both securities. “In future years we believe the shares of “Magnet” unattractive, however, and shares of other grocery retailers. Now, in our opinion, the current price compensates for insufficient risks”, — said the analyst CC “Finam” Natalia Malykh.
According to her, the growth strategy of the retailer will increase operating expenditures and capital investments, reducing the margin of net profit and increasing debt. The company’s investment program will keep cash flow under pressure, and its projected dividends do not cause much interest, concludes Small.
Medium-term prospects of VTB depends on the nature of the sanctions, which will enter the us authorities against Russian state-owned banks, but by themselves these actions are not popular among foreign investors, says Suverov.
Papers “the Magnet”, in his opinion, has ceased to be a “share of growth” in addition, many shareholders do not want to take the risk VTB as the main shareholder of the company. “From our point of view, the shares of “Magnet” is now overvalued from a fundamental point of view,” concluded the sovereign.