Why Yandex, Jumia Technologies, and Coeur Mining Slumped Today
The stock market finished the week strong, with investors pleased by what appeared to be a cordial and productive meeting between leaders of the U.S. and Chinese trade delegations. President Trump indicated that some progress had been made toward a preliminary agreement, and while many wonder just how limited any near-term deal might be, market participants appeared eager for some signs of forward motion.
Yet despite a market rally that took major stock indexes up by 1% to 2%, a few stocks still missed out on Friday's gains. Yandex (NASDAQ: YNDX), Jumia Technologies (NYSE: JMIA), and Coeur Mining (NYSE: CDE) were among the day's worst performers. Here's why they did so poorly.
Shares of Yandex dropped almost 16% after news broke that the Russian parliament is looking at measures that could limit the ability of foreign investors to own stakes in the internet company. A draft law would target certain technology companies with a maximum foreign ownership limit of 20%. Russian lawmakers argue that the measure is necessary in order to ensure that their country's tech companies are not taken over by larger foreign rivals. About 85% of Yandex stock trades on the Nasdaq, and its management argued that if passed, the law would only hurt its ability to access the capital it requires in order to grow. U.S. investors seemed pessimistic about Yandex's chances to avoid getting hobbled by the potential new regulations.
Source Fool.com
