Magnit shares are up 44% from their lows in August. what's going on
On November 10, the retailer's ( MGNT ) securities added 5%, reaching 2,077 rubles, the highest since June. The stock is up nearly 44% since hitting its multi-year low on Aug. 27.
What caused the growth?
Speculative matter. According to analysts, the movement occurs mainly without fundamental reasons - investors win back the fall in shares.
Closing short positions. One version is that a major market participant closes shorts. This may trigger a sharp increase in quotes.
technical factor. Overcoming the 2000 ₽ level, which was resistance for a long time, triggered a wave of technical purchases and short-sold stop orders.
Board agenda. Investors are following decisions regarding the subsidiary Thunder, through which a package of 3.8 million shares of Magnet is issued. However, the extension of the latest repurchase agreement until April 2027 means that there will be no obligation to repurchase these securities in the near future.
What will happen next to Magnet shares - in the material of RBC Investments.