FRANKFURT (dpa-AFX) - A capital increase put the brakes on the strong recovery of Hypoport 's shares on Friday. The securities of the financial services provider fell by almost four percent to 140.70 euros by midday, making it the weakest stock in the SDax. The small cap index gained around one percent.

After the slump in construction financing, Hypoport wants to return to growth with fresh money from investors. Looking ahead to 2023, company CEO Ronald Slabke spoke of a "year of great opportunities for further market share gains." The financial services provider raised a gross amount of around 50 million euros by issuing new shares.

Hypoport had placed the new shares at a unit price of 132 euros. This represents a discount of four percent on the weighted average price of the past three days and almost ten percent on the closing price on Thursday. The shares were traded at 146.20 euros, giving Hypoport a market capitalization of just under 950 million euros.

The investors showed up on Friday with a huff, because after a capital increase, their own share in the company in terms of voting rights is worth less than before this measure.

Experts at analyst firm Pareto Securities wrote that the move had surprised them. However, it seems sensible to use the recent rise in the share price to be prepared for future opportunities in a difficult market environment. The specialists also remain convinced of the company's medium-term growth opportunities.

The industry had come under pressure in 2022. Whereas the brokerage of real estate loans had boomed during the period of low interest rates, business slumped in the second half of the year as a result of the turnaround in interest rates and lower demand for real estate. Potential buyers of apartments and houses held back because prices were too high for them in view of increased financing costs. As a result of the slump in the real estate market, Hypoport scrapped its targets for the year at the end of September and announced cost-cutting measures.

The share price then came under even greater pressure and fell to 72.55 euros - the last time the shares cost less than this was in 2016. Since then, the share price has almost doubled, as speculation has been rife for several months that the cycle of interest rate hikes by central banks will soon come to an end. However, the decline in Hypoport shares since the record high of 618 euros at the beginning of 2021 still amounts to almost four-fifths.

From a chart perspective, it is positive that the Hypoport shares on Thursday have recovered the losses since the slide at the end of September. The shares are currently trading above the 21- and 50-day average lines, which describe the short- and medium-term trends, respectively. The next resistance is the much-noted 200-day average, which stands at a good 172 euros./la/ajx/jha/