Qiwi Retreats on Concern Bill Will Limit TransactionsElena Popina
Qiwi Plc, the Russian electronic-payment operator, plunged 13 percent to post the biggest weekly decline since its May debut on concern a proposed anti-terrorism bill will limit transactions.
American depositary receipts of Qiwi tumbled to a two-month low of $40 in New York, after sinking 17 percent on Jan. 15, when newspaper Kommersant first published the news. Trading volume was more than seven times the 90-day average, data compiled by Bloomberg show. The shares have gained 135 percent since their U.S. listing.
The amount that people can transfer via online payment accounts without providing personal information will be limited to 1,000 rubles ($29.80) a day, a draft bill in Russia’s lower house of Parliament, or Duma, shows. President Vladimir Putin has called for increased security in the aftermath of the December Volgograd attacks that killed more than 30 people.
“This is a panic reaction in response to any news that Internet transactions might be limited,” Andrey Shenk, an analyst at Moscow-based research firm Investcafe LLC, said by phone. “When the panic about the proposed legislation goes away, the company’s stock will rebound.”