G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
Lufthansa: Stocks Drop Ahead of Additional Issue
Information is not investment advice
What will happen?
Lufthansa will initiate an additional share issue to increase its capital by €2.14 billion, which will help to pay off a government bailout secured at the height of the COVID-19 pandemic. Aviation was among the sectors hardest hit by lockdowns and international travel restrictions and Lufthansa was one of several airlines forced to secure a government bailout.
Lufthansa believes that this money will help to repay the €9 billion state aid that saved it from bankruptcy. The stock price for the additional issue is set at €3.58. The issue will start on September 22 and run for the next two weeks.
The current state of Lufthansa’s finances
In the Q2 financial statement, Lufthansa recognized a €756 million loss. Last year, when travel worldwide was halted by COVID-19, the airline's losses reached €1.5 billion.
Despite travel restrictions being eased and an increase in bookings, the German carrier said it still expects to operate at 40% of its pre-crisis capacity this year.
Technical analyses
Daily chart
The price dropped by 25% on September 22 and broke through the support of €7, which has held the price since 1993. We expect Lufthansa to reach the last historical support range of €4.5 – €4.6. But before that, the price might retest the previous support level from below. As we can see, right now RSI locates in an oversold zone, that’s why we expect the price to return to €7 level again, before the next down move.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
