Market report: Another day of misery for Mediclinic

MEDICLINIC’S freefall to new record lows extended into a second day as City scribblers rounded on the hospital operator in the wake of Wednesday’s sentiment-sapping update.

A wave of analyst downgrades unnerved investors after the FTSE 250 firm admitted a regulatory shake-up had impacted its Swiss division. Boss Ronnie van der Merwe said that Mediclinic had not expected new regulation that reduces the fees it can charge patients and insurers to have impacted the company so quickly.

Barclays, Bank of America Merrill Lynch and Morgan Stanley queued up to downgrade the company yesterday. Morgan Stanley said Mediclinic’s Swiss woes had knocked down a key part of its “overweight” thesis, while Barclays warned that there was a risk of missing the revised full-year guidance. “We question the assumed significant recovery in the second half,” it argued.

After the 17pc loss on Wednesday, the downgrades dealt another blow to Mediclinic’s shares, pushing them down a further 36.3p to 357.7p. The company’s shares have now halved in just over five months, wiping £2.6bn off its market value.

Elsewhere, global stocks struggled to shake off fears of rising interest rates after the Federal Reserve showed no signs of bowing to pressure from Donald Trump and nervy markets.

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