According to Trade News, this year was a fruitful year for the European stock market. But there are investors who failed in this market by buying expensive and overpriced initial offerings.
Half of the 10 symbols that fell the most this year in Europe’s Stux 600 index were released in the last 15 months. The five symbols THG Plc, Auto1 Group SE, Allegro.eu SA, Deliveroo Plc and Inpost SA fell 39 percent or more as the market index rose 19 percent.
All of these symbols operate in the field of e-commerce. The sector that flourished early in the Corona outbreak but declined in popularity as other economic sectors reopened. This made it impossible for these companies to maintain their previous growth. At the same time, some symbols were introduced to the market at very high prices, and investors questioned the management of some of these symbols.
“According to what we have seen and proven this year, the more quantity, the lower the quality,” said the head of European stock research. “If investors do not make good choices, they will receive negative feedback from the market.”
According to Bloomberg, the worst time of these damages was after the summer. At a time when concerns over global resource shortages, rising inflation and the return of the corona were causing the market to lose its stability. Although the re-imposition of restrictions should have helped the companies that benefit from them, market risks prevent any temporary development of these businesses.
Compensation for losses
On the other hand, among the 550 companies whose shares were initially offered this year, almost half of them have increased in relation to their offering price. Investors can also offset their losses with the many offers to be made in the first quarter of 2022.