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Myer share price: what’s behind the run-up?

'Our vision remains for Myer to be a data and digital-led retailer supported by our store network, which continues to be an asset to our business.’

Rumours only grow

In a perfect world, markets would be perfectly efficient. Alas, markets are anything but: traders trade on speculation, rumour, lies, news, non-news and a whole host of other ill-shaped data pieces and fragments.

It’s not necessarily a bad thing, but it can have often unintended consequences. Best to be aware of it, rather than not.

Take Myer (ASX: MYR) – a historic piece of Australiana. Despite its place in the country’s history, the stock and the company has struggled over the last decade, as software eats the world and people shun bricks-and-mortar retailers.

Positively at least: the stock was up 9.46% in the first hour of trade on Tuesday. Great for the short-term traders. But long-term, the picture of a retailer in decline is stark.

Over the last decade-and-a-bit the stock is down close to 90%. A perilous proposition for long-term holders.

Myer has shifted its focus to online sales and has seen success from this strategic reorientation. At its last set of interim results in fact, the performance of its online business was the very first thing mentioned, with the retailer noting that it had seen 'strong growth in group online sales, up $71.0% to $287.6 million,' for the 26 weeks to 23 January.

At those levels, online sales represent some 20% of total sales.

This online-focus was also reiterated as part of the company's most recent market update, wherein management disclosed the closure of its Victoria, Knox Myer store.

'In making this decision today, we have taken into account our rising online sales, as well as the number of Myer stores that are in close proximity to the Knox store,’ said John King, Myer’s CEO.

'Our vision remains for Myer to be a data and digital-led retailer supported by our store network, which continues to be an asset to our business,’ Mr King added.

Do you have a view on Myer? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.

For example, to buy (long) or sell (short) Myer today using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘MYR’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

For investors not looking to trade stocks, you can invest in shares directly through our share trading service.

Myer share price in focus

But the stock likely wasn’t up today because of the retailer’s online focus.

So why was it?

The Australian Financial Review (AFR), after the market close on Monday, ran a story titled 'Solomon Lew shops for more Myer shares'.

Lew, who already holds a 10% stake in the business through Premier Investments, is reported to have been 'hoovering up Myer stock on Monday, on a day when more than 40 million shares changed hands or about 10-times the four-week average.’

‘It’s expected to be back in the market for more stock on Tuesday.’

Whether it was indeed Lew’s Premier Investments that pushed the stock higher on Tuesday, or other traders piggy-backing on the news disseminated by the AFR, or both, remains unclear.

Regardless, the stock closed out the session up 14.8% at 42.5 cents per share, with over 19.9 million shares trading hands during the session.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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