LONDON/FRANKFURT (dpa-AFX) – TUI shares are in focus in the middle of the week. Because this Wednesday ends trading in the subscription rights from the capital increase of the travel group. In the morning in Xetra main trading, the price of the subscription rights fell by more than a third to EUR 1.21 compared to the Xetra close on the previous day – and thus continued the strong fluctuations in trading so far.
On the London Stock Exchange, where the vast majority of subscription rights and Tui shares are traded, the Tui price fell by 1.6 percent to £5.77. With the start of the capital increase at the end of March, the paper had fallen below the 10 pound mark, at a low of around 5.40 pounds.
Analyst Jamie Rollo from the investment bank Morgan Stanley had advised the previous day to continue avoiding Tui shares. The expert anticipates weak acceptance of the new shares by investors. The sharp fall in the price for the subscription rights should prove him right in this regard. The result is a large overhang of shares, which will latently depress the share price in the future, according to Rollo.
To date, business with subscription rights on the German market has been very volatile. On the first day of trading on Xetra at the end of March, the price rose from EUR 5.55 to as much as EUR 6.99. It then went downhill to 84 cents with strong fluctuations. On the Thursday before the long Easter weekend, the price shot up by almost 160 percent to 2.87 euros, on Tuesday it went down again by around 35 percent. On average, almost five million subscription rights changed hands on Xetra every trading day.
According to the prospectus for the capital increase, trading in subscription rights on the Frankfurt and Hanover stock exchanges ends at noon. On the London Stock Exchange, on the other hand, the papers will be traded until the close of trading./bek/gl/ngu
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