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Wirecard with further course capers

WThere is also a back and forth on Tuesday for the shares of Wirecard. The papers of the payment processor, which was threatened in its existence, headed for a further tripling of the course with more than 9 euros, before it finally rose almost 6.2 percent above the previous day’s closing with 6.29 euros. The shares of the company shaken by a balance sheet scandal are increasingly becoming a short-term speculative object. Last Friday they had only cost a good euro.

The price already tripled on Monday – after almost 99 percent loss in value within a few trading days. Just over two months ago, the shares had still cost over 140 euros and at the record high in early September 2018 shortly before the Dax rise, 199 euros had been paid.

Following the group’s bankruptcy filing last week, the North American subsidiary Wirecard North America is now up for sale and the British financial regulator FCA wants to allow the company to continue doing business. On Friday, the FCA shut down the local subsidiary Wirecard Card Systems and prohibited any transfers of funds and assets.

Wirecard should be thrown out of the Dax after the quasi-total loss at the latest in September for the next regular index review by Deutsche Börse. Quite a few market experts shake their heads and call for the “Fast Exit”, that is, quick exclusion from the leading index. “Absurd, not a good sign for the stock culture in this country,” said the tenor.

Deutsche Börse reacted the previous day and announced a revision of its rules for Dax membership. The ejection for Wirecard from the pan-European Stoxx Europe 600 went faster: as of Tuesday they are no longer included.

The violent price erosion of the Wirecard share has hardly any fundamental reasons, but rather is evidence that the low-level paper is primarily bought by speculators who rely on a quick recovery and then cash in just as quickly.

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