Tuesday , March 28 2023

The weakness in the retail sector prevents Falabella to recover in the stock market


The market players argue that there is uncertainty about income b & # 39; e-commerce own health.

At the end of & # 39; July, shares & # 39; Falabella were traded close & # 39; $ 6,000. However, after the purchase announcement & # 39; Linio and the capital increase to finance the company makes it and other investments, stock flooded, and there failed to recover.

Even after placing & # 39; shares in the framework of the capital increase, 19 & # 39; In October, the price of paper has not rnexxielx again & # 39; starts.

At the end of Friday, to $ 5215.8, title accumulating losses of & # 39; 1.35% by placing the stock market. From the day & # 39; before the announcement of the operation, the reduction reaches 12.05%.

Buying & # 39; Linio and announcement of & # 39; alliance with & # 39; Google to engage in the business & # 39; electronic payment were good decisions, according to local market agents, by strengthening the company's position before the advancement of e-commerce. Why, then, action has failed to recover?

Market are generally indicate poor performance of the sector. "The retail sales industry in general showed poor performance in Chile due to weak consumption figures and employment, it is not clear that they will recover b & # 39; significantly in 2019", explains Luz María Muñoz, Stratega Nevasa of the market, adding that this had an impact on the results of both & # 39; Falabella as well & # 39; Cencosud. According to Rene Le Fort, an analyst at brokerage MBI, the economic environment of the country did not support good results in the company. "The consumer did not go well and that affects the whole sector", he says, adding that the whole sector is affected by the "imminent danger & # 39; Amazon".

That particular item generates doubts still, say the operators. Although Falabella was preparing b & # 39; actively entry of & # 39; international e-commerce players, there are still questions about how the dynamics of retail changed with the arrival of Amazon, and that will mean for the company's results. For Muñoz, along with & # 39; quarterly reports in line with expectations, there are several sources of & # 39; risk on the horizon & # 39; Falabella. Added & # 39; the uncertainty associated with e-commerce, "a short-term risks in the integration & # 39; Linio and then the arrival of & # 39; Ikea".

The remaining

The last week ended the period of subscription of the preferred option of increasing the company's capital, ended by taking & # 39; 12.3 million shares by the controllers.

Considering that 62,1 million documents were placed in the auction of the bag and 84.3 million shareholder approved, the remaining 9.9 million shares placed increases. Although the market is expected that this sum can & # 39; cause some pressure on the price, considering that you & # 39; an increase in supply & # 39; & # 39 shares; Falabella when they go on sale, operators say they do not have a greater impact.

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