Jeronimo Martins’ shares boost by 4%, following Polish governments’ retraction regarding new legislation
The Polish government is evaluating the risks of a law which would force supermarkets to close on Sundays. JM stocks have accelerated following the government's second-guessing.
In Poland, the legislative initiative envisioning that supermarkets would have to close on Sundays might have to be reviewed. That possibility has boosted Jeronimo Martins’ share value by 4%, hitting the highest values of the last 4 months.
According to Bloomberg, the Polish prime minister has said that the government is still analysing the effects such an initiative could have, noting that a decision will be announced very soon.
Jerónimo Martins’ shares have reacted spectacularly to this possibility, as the retail company’s main market is Poland, with supermarket chain Biedronka, the leader in sales of the country. The shares went up by 4.46% stepping up to €13.01 per share, the maximum value registered since September 19.
The new law, which came into force in March last year, has prohibited supermarkets and other shopping areas from opening more than two Sundays every month. Last year, Biedronka’s sales hit €11.691 billion, which represented a 5.6% growth in comparison to 2017. The Polish market represents 67.4% of the group’s accounts.
One other factor which might help understand the boost in the company’s stocks this session is the fact that one of the main shareholders of DIA (owner of Minipreço), Mikhail Fridman, announced the company is putting forward a public tender offer, something which changes significantly the sector’s dynamics.
