X5 shares soared 7% after resumption of trading on the Moscow Stock Exchange

In the first 20 minutes of trading, the transaction volume exceeded 4 billion rubles. The share price reached 3 thousand rubles, but then it began to decline and at 10:57 Moscow time it fell to 2.79 thousand rubles, which is 0.4% less than the previous level.

Previously, depositary receipts of the Dutch legal entity X5 were traded on the Moscow Stock Exchange. However, in April 2024 receipt trading was suspended because the company re-registered from the Netherlands in Russia. At that time, the cost of receipts was 2,798 rubles.

T-Investments analysts believe that in the near future X5 shares may temporarily fall due to a large number of securities that were purchased abroad at a discount and are now entering the market. However, this drop will be short-term.

According to X5’s financial report, in the third quarter of 2024, the company’s revenue increased by 25% to 2.8 trillion rubles and net profit increased by 33% to 94.68 billion rubles. BCS analysts expect that dividends for 2024 and earlier years could amount to 538 rubles per share, which means a dividend yield of about 19%.

In late December, brokers warned that investors who had previously purchased X5 depositary receipts would face higher taxes when selling shares. This is due to the special procedure for accounting for the costs of purchasing shares of companies moving to Russia within the framework of Law No. 470-FZ on forced redomiciliation. The tax base will increase by 42.4% of the purchase price of the securities.