Wirecard share weakened by Financial Times

Published on: 17-Oct-2019
Category: Trading
Last updated: 17-Oct-2019

Wirecard share weakened by Financial Times

Over the last few days, there have been sharp fluctuations in the prices of the payment service provider's shares, as evidenced by Financial Times (FT) reports. In the past there have been negative reports from the FT on Wirecard that ended in legal proceedings. On Tuesday, an article was published on alleged accounting falsifications and questionable transactions. The revenues of customers who are contracted in Dubai and Ireland, which accounted for nearly 32 percent of global sales in the 2018 financial year, are said to have been artificially increased. The FT report refers to internal documents, especially from the financial department of Wirecard, that were forwarded by a whistleblower.

The trade was then temporarily suspended and the crashed course held low for some time. After the release of the report, the value of the company fell by four billion euros. Wirecard has denied the allegations by issuing a mandatory notification. Meanwhile, the price has recovered slightly and ended the trading day on Wednesday with a small plus of 0.37 percent.

Since the beginning of the year, the Financial Times has repeatedly caused price drops of the Wirecard shares through similar allegations. Finally, the Federal Financial Supervisory Authority (BaFin) intervened. She filed a complaint on suspicion of market manipulation. In total, contributions by journalist Dan McCrum, who runs the Alphaville blog at the FT, have resulted in losses of € 8 billion. He is being investigated for violations of the German Securities Trading Act.


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