METRO Shares

In the financial year 2012, the price of the METRO share turned downward in a generally positive capital market environment. One cause of this decline was ongoing concern about the potential impact that the European sovereign debt crisis would have on the sales and earnings of METRO GROUP. Furthermore, the difficult business conditions faced by nonfood retailing, particularly consumer electronics, hurt the share’s performance more than they did other areas of the retailing industry.

In January and February 2012, the price of the METRO share rose slightly, hitting its yearly high of €31.18 in March 2012. The announcement in March of the Company’s outlook for the entire year and the release in May of results for the 1st quarter of 2012 acted as a drag on the share’s price. In July 2012, the price of the METRO share fell to its low for the year, €20.05. But the level of €20 proved to be a strong floor for the share. The price did fall below this level for short periods during intraday trading, but not in terms of daily closing prices. Until early autumn, the METRO share followed the slight upward trend in the market.

On 5 September 2012, Deutsche Börse announced that METRO AG would be dropped from the DAX blue-chip index effective 24 September and would be added to the MDAX. In terms of the market capitalisation of the Company’s free float, METRO AG lost its position among the 35 biggest listed companies in Germany – a key criterion for inclusion in the DAX. The change prompted investors to rearrange their portfolios, particularly those involving index funds. This also had a negative impact on the share’s performance.

At the beginning of October, METRO GROUP lowered its expectations for the financial year 2012 and announced that it could no longer maintain its outlook. The reasons for this decision included rising unemployment in Europe, which set a new record, and the intensifying austerity efforts being undertaken by members of the eurozone to rein in the sovereign debt crisis. As a result, consumer confidence in Europe became even more pessimistic than the Company had initially expected. The modification of the Company’s outlook created a further headwind for the METRO share. Lacking any positive momentum, the share price moved sideways for the rest of the year. The share gained only a brief lift from the November announcement of the divestment of the international business of the sales line Real to the French retailer Groupe Auchan.

The METRO share closed the year at €21.00, 25.5 percent lower than a year earlier.

 

Development of the METRO share price (%)

 

Development of the Metro share price (%) (chart)

Performance comparison of METRO ordinary share in 2012 vs Dow Jones Euro STOXX Retail vs DAX vs MDAX

 


METRO GROUP

Dow Jones Euro STOXX Retail


DAX


MDAX

Source: Bloomberg

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METRO shares 2010 – 2012

 

 

 

 

 

 

 

 

 

2010

2011

2012

1

Subject to the resolution of the Annual General Meeting

Data based on XETRA closing prices

Source: Bloomberg

Annual closing price

Ordinary share

53.88

28.20

21.00

Preference share

36.09

24.16

23.05

Annual high

Ordinary share

58.53

55.91

31.18

Preference share

40.89

39.24

27.50

Annual low

Ordinary share

37.28

27.39

20.05

Preference share

32.00

22.43

20.80

Cash dividend

Ordinary share

1.35

1.35

1.001

Preference share

1.485

1.485

1.061

Dividend yield based on the closing price for the year

Ordinary share

%

2.5

4.8

4.81

Preference share

%

4.1

6.1

4.61

Market capitalisation (billion)

 

17.6

9.2

6.9

  Download XLS (15 kB)

Information about the METRO shares

 

 

 

 

Ordinary share

Preference share

Code number

725 750

725 753

ISIN code

DE 000 725 750 3

DE 000 725 753 7

Reuters code

MEOG.DE

MEOG_p.DE

Bloomberg code

MEO GR

MEO3 GR

Number of shares

324,109,563

2,677,966