Intu Properties bears the brunt of Brexit panic
Premature to assume UK retailers can’t adapt to a new world and that Brexit will wreck the British economy
Financial markets are brutal, and when they start to punish a struggling company there have to be strong signs of a recovery before there is any improvement in share prices.
Intu Properties (https://www.sharenet.co.za/v3/quickshare.php?scode=ITU) has been treated with disdain by the market ever since the Brexit referendum in June 2016. Its share price has collapsed and investors are seemingly writing off hopes of its recovery. Given that it owns at least 10 of the UK’s best rated 20 shopping malls, it’s harsh for investors to have dumped so many of its shares over the past few years.
Investors blamed uncertainty around the process through which the UK would leave the EU. They also said online shopping would destroy bricks-and-mortar sales forever. The perceived value of Intu’s malls went into free-fall and the share price followed suit, dropping from R68 before the referendum to R3.50 at the close of trade (https://www.sharenet.co.za/v3/quickshare.php?scode=ITU) on Wednesday...