Shares of Poland based Retail FX and CFDs broker XTB fell by 12% on Monday, after the company issued a statement regarding its plans in Spain.

As we reported yesterday, XTB said it would basically halt all CFDs trading marketing related activities in Spain, in accordance with new regulations in the country. XTB will, however, continue to operate in the Spanish market and take on Spain based clients. The company noted that the changes will likely have a negative impact in the medium and long term on the number of clients acquired in Spain, and consequently on the level of revenues generated from this market.

XTB gets about 11% of its Revenues from Spain based clients (2023 data), making Spain one of XTB’s most important markets after its home market in Poland (46% of Revenues).

When we posted our original article (linked above) on Monday morning XTB shares were trading down about 5%. However the selloff picked up as the day continued, and XTB closed the day at PLN 64.02, down 12% from Friday’s close of PLN 72.58.

XTB shares had basically doubled since trading in the low to mid PLN 30s in late 2023, as the company reported record results for the first quarter of 2024 and the market anticipated that more growth was likely ahead. However the current announcement re Spain seems to have spooked the markets, regarding both the direct effect of the Spain market changes as well as XTB’s overall growth prospects moving forward, leading to Monday’s selloff from what were all-time highs in XTB shares.

XTB SA (WSE:XTB) share price chart past 12 months. Source: Google Finance.