Paper brand Navigator shares plummet 18%
Navigator, which makes premium office paper for photocopying and stationery, has seen its shares plunge by 18% — the worst performance ever.
The Portuguese paper producers fall on the stock market was provoked by the United States of America’s decision to slap tariffs on paper sales to the United States – one of its major markets.
Navigator shares lost 18.2% of their market value to €4.08 per share — the largest fall since the company’s entrance on the PSI-20 Stockmarket in 1995. It also meant that 1.5% (€651 million) was wiped off the value of shares overall on the PSI-20 as traders got jittery over both the US trade tariffs and the further collapse of the Turkish Lira.
BPI/Caixa Bank analysts forecast a negative impact on the company since 10% of its sales are to the United States.
“Despite the company making an official appeal to the United States, while tariff issues continue, we will continue to see investors keeping clear of the company” says Carla Maia Santos, a senior broker at XTB.
Between August 2015 and February 2017 tariffs on sales will be charged at 37%. Initially Navigator expected that these products wouldn’t be taxed and will appeal against the decision. The anti-dumping tax applied by the USA could have a €66 million on Navigator’s EBITDA and 45 million on its profits this year according to the company.