CMVM monitors Navigator’s assets following its 18% fall

  • ECO News
  • 13 August 2018

The new US taxes on paper sales are hampering Navigator's profits. Analysts have indicated that the losses will continue to be witnessed until the tax is waivered.

The Portuguese Markets Regulator (CMVM) is paying special attention to Navigator’s negotiations following up on the 18% fall the papermaking company has registered this morning.

“Given CMVM’s role as a regulator, we will continue to monitor the behaviour of Navigator’s assets thoroughly“, the commission informed Portuguese news agency, Lusa.

This morning Navigator’s stocks suffered an 18,2% hit, its highest percentage fall to date, with each share being valued at €4,08. The company announced it will legally challenge the taxes being raised by the USA.

At 12:40 AM, the shares had decreased 9,38% (€4,52), softening slightly the impact and losses from the first session’s results.

Carla Maia Santos, XTB’s analyst, told Lusa that it is “likely that investors will be driven away in light of the devaluation of the company, and as long as there isn’t a closure to these proceedings it will remain as such (or as soon as Navigator files a claim against US’s taxes).

The analyst added that Altri (another papermaker, also listed in the stock market), has likewise witnessed a decrease in its stocks, which fell by 2,79% reaching a €8,72 value per share, also noting that “investors are becoming very cautious”.

Last weeks’ performance of the sector was quite exhilarating for papermakers, in contrast with this week’s fall. 

The dollar valuation hasn’t helped the paper industry either — it is usually a factor that motivates investors to buy papermaking industry’s stocks, given the strong ties between the USA and this industry —  the valuation of the dollar has a direct positive impact on the companies’ revenue as they are very exposed to the North-American market.

August has also witnessed a very low volume of negotiations in the Portuguese stock market, meaning that such variations’ will have a magnified impact.

The new anti-dumping measures will have an estimated impact of €66m in losses on EBITDA and €45m in losses on the company’s net profits this year.