Started unchanged in XETRA trading in the morning, the Ceconomy shares increased their plus to 16 percent by midday. With the jump in price, the papers managed to return above the EUR 1.50 mark. It gave them the top spot in the small-cap index SDAX, which also gained almost 1.5 percent at the same time. At the end of the week, investors generally became more willing to take risks again.
Traders spoke of a recovery that had already begun the day before after Wednesday’s low of EUR 1.25 and is now picking up speed. Speculators who had bet on falling prices may also have been cornered. We are then talking about a so-called short squeeze, in which many of them are suddenly forced to stock up and thus buy the share.
Speculators have recently been able to make a lot of money with the share on falling prices: with an annual loss of 60 percent, they are still one of the weakest SDAX stocks even after the price jump. In an environment of supply chain problems, higher prices and the gloomy consumer climate, a retailer warned against now declaring a course reversal.
/tih/jha/
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