The third delay in the Cyberpunk premiere was too much for the stock exchange. CD Projekt’s shares peak. The game will not be released until December 10th and may miss some holiday demand. The drops are not only the domain of CD Projekt. Most of the market is headed down by Allegro, PGE, JSW and CCC. Allegro moves away from the capitalization of PLN 100bn achieved on Tuesday.
- The zloty is falling, the stock market is also falling. This points to the withdrawal of foreign capital from Poland
- As many as six WIG20 companies drop by more than 5 percent. The downward movement of CD Projekt shares is the most significant after the announcement of the postponement of Cyberpunk 2077’s release to December 10. It is very close to Christmas, which is the time of increased demand for similar products
- The high decrease concerns, among others CCC. The company announced the results of the third quarter, even better than the preliminary ones, but the prospect of a lockdown deteriorates the investors’ mood
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Fall of the zloty exchange rate against both the dollar and the euro, combined with the downward march of shares on the Warsaw Stock Exchange, are strong arguments for the fact that short-term foreign capital is leaving Poland.
The WIG20, showing changes in the twenty most important companies, loses 2.7 percent. after almost three hours of session on Wednesday. Similar declines affected medium-sized companies from mWIG40 and small companies from sWIG80. The retreat from Polish stocks is therefore across the entire market width. In Europe Stock exchanges in France and Germany recorded a similar decline, and larger – in Russia.
In the group of WIG20, drops of more than 6%. concern: PGE and JSW. But CCC, CD Projekt, TauronPE and Allegro are also close to crossing this threshold. Already Tuesday’s high turnover on the stock exchange suggested that there was an important moment in trading, and it did.
More and more from the market value of PLN 100 billion achieved on Tuesday Allegro moves away. After the price dropped by 5.3 percent. is quoted below PLN 90, which gives a capitalization of PLN 92 billion. At this level, the price to earnings ratio is 189, suggesting that the rate is still high. Investors, however, expect a sharp increase in profits in the wake of the pandemic, where retail trade is inevitably partially shifting to the internet. This could improve the market parameters for the company’s shares.
With a price-to-profit ratio of 189, if the company were to allocate the entire profit in a similar amount as for the period of 2Q 2019-1Q 2020 for dividends, it would give the dividend rate (equivalent to interest on the deposit) 0.53% gross.
Cyberpunk later, stock cheaper
But the biggest impact on the decline of the WIG20 on Wednesday is not Allegro, but CD Projekt. The shares of the largest video game producer in Poland fell during the session by up to 6.4 percent. to slightly below PLN 340, which was the lowest rate since April 22. In the following hours, they rebounded slightly and the decline is around 5%.
Reason? The release of Cyberpunk 2077 is shifted to December 10th from November 19th. The six-day working week in the company apparently did not help. And this is the third postponement of the premiere.
There are even jokes on the web that if it goes on like this, at the premiere the game will not talk about the future, but the past. Originally, the debut was supposed to take place on April 16, then on June 18, November 19 and so we got to December 10.
Perhaps postponing the premiere is normal in this industry, but new the date has come too close to Christmas and in the eyes of investors, this may mean that some of the holiday demand will be missed. And a possible next postponement would go beyond this time, so the holidays may win other productions.
CCC’s results did not disappoint, but the stocks went down
CCC, which published its results for the third quarter on Wednesday, is among the strongest falling companies from WIG20. Shares lose 5.7 percent. The rate dropped even below the level of PLN 36, not seen since April 9.
In fact, the results are better than the preliminary estimates, when the company announced that the operating loss was probably PLN 8 million. It turned out that there is a small profit of PLN 1.2 million, not a loss. Which didn’t bring the net result above zero anyway. The capital group’s net loss amounted to PLN 63.8 million in the third quarter and was almost twice as high year on year.
However, the report said that due to the pandemic, the group expects a significant decline in the value of the footwear market in 2020 and its recovery in 2021. However, provided that the government does not close stores. There is a great danger that it is present COVID-19 disease records could lead to a severe lockdown.
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