In the financial year 2012, the price of the METRO share turned downward in a generally positive capital market environment. One cause of this decline was ongoing concern about the potential impact that the European sovereign debt crisis would have on the sales and earnings of METRO GROUP. Furthermore, the difficult business conditions faced by nonfood retailing, particularly consumer electronics, hurt the share’s performance more than they did other areas of the retailing industry.

In January and February 2012, the price of the METRO share rose slightly, hitting its yearly high of €31.18 in March 2012. The announcement in March of the Company’s outlook for the entire year and the release in May of results for the 1st quarter of 2012 acted as a drag on the share’s price. In July 2012, the price of the METRO share fell to its low for the year, €20.05. But the level of €20 proved to be a strong floor for the share. The price did fall below this level for short periods during intraday trading, but not in terms of daily closing prices. Until early autumn, the METRO share followed the slight upward trend in the market.

On 5 September 2012, Deutsche Börse announced that METRO AG would be dropped from the DAX blue-chip index effective 24 September and would be added to the MDAX. In terms of the market capitalisation of the Company’s free float, METRO AG lost its position among the 35 biggest listed companies in Germany – a key criterion for inclusion in the DAX. The change prompted investors to rearrange their portfolios, particularly those involving index funds. This also had a negative impact on the share’s performance.

At the beginning of October, METRO GROUP lowered its expectations for the financial year 2012 and announced that it could no longer maintain its outlook. The reasons for this decision included rising unemployment in Europe, which set a new record, and the intensifying austerity efforts being undertaken by members of the eurozone to rein in the sovereign debt crisis. As a result, consumer confidence in Europe became even more pessimistic than the Company had initially expected. The modification of the Company’s outlook created a further headwind for the METRO share. Lacking any positive momentum, the share price moved sideways for the rest of the year. The share gained only a brief lift from the November announcement of the divestment of the international business of the sales line Real to the French retailer Groupe Auchan.

The METRO share closed the year at €21.00, 25.5 percent lower than a year earlier.

Development of the METRO share price (%)

Performance comparison of METRO ordinary share in 2012 vs Dow Jones Euro STOXX Retail vs DAX vs MDAX

Source: Bloomberg