Frowny opening of the Stockholm stock exchange in a gloomy - looking Monday


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Monday, 05 September 2011
Stockholm stock market open on Monday in one of the most observed gloomy look as seen in the past weeks and the indexes started falling right down.

Both the broad stock market indices and OMXS30 started falling flat and after some 45 minutes to trading, more the indexes were down 2 percent.

As the Asian stock markets fared very badly on Monday, the expectation was that this would be translated in the Stockholm Stock Exchange as such analysts did not see how that could change. Also the fact that the U.S. stock markets were weak on Friday, it means that market dealers would continue to look gloomy.
Analysts also feel that the effects of the market fall has been driven  99 percent by macro economic issues and on the OMXS30, among the companies that are feeling the least heat are cyclical companies such as pharmaceutical company Astra Zeneca and telecom operator TeliaSonera.

The worst sector in the initial trade was the energy sector, dropping 3.5 percent. But there are also many big corporations that have a hard time on Monday, including truck maker Volvo, dropping 3.3 percent. The mining company Boliden slopes 3.7 percent and the engineering company ABB backs 3.5 percent.

The spot price of Brent crude has fallen 1.2 percent on Monday, which could affect oil companies' share price performance.

Analysts feel that Oil Prices slopes of concern for the economy and then this follows the oil companies. Historically, at least, many oil companies are being moved more by the exchange rates changes than by the price of oil.

Worst on the energy sector is EnQuest that has deals with both exploration and production around the UK. The company’s stock has now fallen more than 8 percent. On Friday the company announced that its production forecast for 2011 which estimated that average production for the full year will be between 23,000 and 24,500 barrels a day. The previous forecast had predicted a production of 26,500 barrels per day.

Most other leading European bourses started also in the gloomy manner
By Team

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