FRANKFURT (dpa-AFX) – The Wirecard balance sheet scandal has kept the stock market in suspense for the seventh consecutive trading day. The paper lost another 64 percent on Friday. This is the third-highest daily loss for a share listed in the Dax in the almost 32-year history of the leading German index. Since it has been known that there is a huge gap in the balance sheet, the share price has now dropped by almost 99 percent. Converted into absolute values, Wirecard’s market capitalization has fallen by 12.8 billion euros since last Wednesday to just over 150 million euros.
This means that dropping out of the Dax (DAX 30) in autumn is almost certain – the company from the Munich suburb of Aschheim was only included in the top league of listed German companies in September 2018. At that time, Wirecard, with a market capitalization of almost 25 billion euros, was more valuable than Deutsche Bank.
Even the paper of the real estate financier Hypo Real Estate, nationalized in the financial crisis, cannot keep up with the rapid decline in the price of Wirecard shares in autumn 2008 – its shares also became practically worthless, but it dragged on for a few weeks. Both values dominate the list with the ten largest daily losses in the leading German index.
Wirecard occupies places two, three, four, seven and ten. If you were to continue the list, the paper would also have ranks twelve to fourteen. However, Hypo Real Estate (HRE) is still the frontrunner. The financier of commercial real estate, which has since been dissolved, is represented twice in the top ten.
1.) Hypo Real Estate -73.9% on September 29, 2008 – Reason: State bailout package due to liquidity shortages in the financial crisis. The bank has since been closed. The state has taken over the billion-dollar risks, and the operational business is largely continued by the Deutsche Pfandbriefbank PBB, which is now listed on the stock exchange. In the meantime, the Pfandbrief bank papers also slipped out of the medium-sized MDAX index and thus continue to lose importance.
2.) Wirecard -71.3% on June 25, 2020 – reason: the announcement of the bankruptcy application.
3.) Wirecard -63.7% on June 26, 2020 – Reason: Increasing concerns about the following of the balance sheet scandal on the operative business, further many open questions with regard to the extent of the scandal
4.) Wirecard -61.8% on June 18, 2020 – Reason: First day of the massive sale after the company had to postpone the figures again due to balance sheet problems.
5.) MLP (MLP SE) -48.7% on 02.08.2002 – Reason: Profit warning and a suspicion of manipulation of the balance sheet, which never hardened. The company still exists. But it no longer plays a major role in the stock market.
6.) VW (Volkswagen (VW) vz) ordinary shares (Volkswagen (VW) St) -45.3% on October 29, 2008 – reason: burst bubble due to a rapid price increase the days before. The unprecedented price caprices of the VW common share at the end of October 2008 led to Deutsche Börse limiting the weighting of a share in the Dax to a maximum of ten percent. Since the free float of the VW common share is now too low, the VW preference share is listed in the Dax.
7.) Wirecard -44.1% on June 22, 2020 – reason: balance sheet scandal is getting worse. The company admits that the escrow accounts, which are said to be 1.9 billion euros, probably do not exist.
8.) Infineon -39.6% on December 3rd, 2008 – Reason: Weak numbers, weak outlook as well as bad situation of the semiconductor manufacturer. The company’s stock was meanwhile a so-called penny stick, so it cost less than one euro. The paper flew out of the Dax at times, but has made a turn. The price was recently around 20 euros – the group is worth around 27 billion euros on the stock exchange.
9.) Hypo Real Estate -37.4% on October 6, 2008 – Reason: Another government bailout package, which led to a further drastic loss in value of the share just one week after the 74 percent crash.
10.) Wirecard -35.3% on June 19, 2020 – Reason: Concerns about the financial position and future viability of the group – partly because the banks can terminate credit lines due to the still missing balance sheet for 2019.
/ zb / wrong
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