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Here’s Why Cineworld Shares Fell 6.55% Today

Simon Mugo trader
Updated 8 Sep 2020

Practice Stock Trading
Cineworld logo

Shares of Cineworld Plc (LON: CINE) today fell 6.55% despite the cinema operator announcing a partnership with Alight Media UK, an outdoor advertising company to promote its cinemas.

Today’s move was part of a broader downward price trend that has seen Cineworld shares fall for five out of the past six sessions amid a lack of major fundamental catalysts to push the stock higher.

The cinema chain operator has reopened most of its theatres though some are yet to reopen and seems to be attracting large numbers of moviegoers to its theatres, be it for movie premieres or screenings of old movies.

The firm continues to be weighed down by its massive debt burden and failed to establish a rally phase even after a Chinese tycoon bought shares in the company.

Cineworld shares surged higher after Liu Zaiwang acquired a 5.1% stake in the company.

Cineworld share price

Tradingview chart of Cineworld share price 08092020

Cineworld shares today fell 6.55% to trade at 55.56p having ended Monday’s session trading at 59.46p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading