Heavy fall of the Stockholm bourse on Friday driven by bad macro economic data


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Saturday, 03 September 2011
Friday was a dreary day on the Stockholm Stock Exchange, which saw rates fall well before the so-important U.S. macro economic data, especially so, when the numbers turned out to be worse than expected.
Sandvik is revising its strategy, and Astra Zeneca has presented negative results from its Saturn study.

At the close, the OMXS30 index of the big caps fell 3.1 percent to 932 and something of about Skr15.9 billion changed hands in the market place on Friday.

The week’s most important figures, the U.S. employment data, was another bitter pill for the market to swallow when not a single job was created. Employment in the United States remained namely unchanged in August, while the forecasts pointed to an increase in employment of 68,000. Unemployment in August touched on expectations and amounted to 9.1 percent.

Stockholm Stock Exchange ekes out its decline after the USA figures were published, and the Wall Street opened with a very strong pessimistic look.

All shares of OMXS30 traded down and heaviest, in terms of power index was H & M and Nordea. H & M fell back by 3.8 percent to Skr191.50, and Nordea fell 2.9 percent to Skr57.40.

Sandvik announced a new strategic direction that described an expansion of its business direction from three to five business areas.

 A analysts explains that the moves looks positive. “It becomes a more focused approach, which divides the Mining as a separate segment, which also Atlas Copco will do from the third quarter in which they divide Mining of Construction.”

Sandvik will also be selling the parts of Sandvik MedTech involving implants and instruments. The business in 2010 had sales of around Skr650 million, and as a consequence it is expected that its result in the third quarter would be burdened with costs of about Skr1.2 billion of goodwill impairment.

Sandvik's headquarters will move from Sandviken to Stockholm and what all these means for the company’ shares is that its shares opened up in the morning days, but during the afternoon, it became part of the gloomy market and was included in the overall decline. At the close its shares had fallen 2.0 percent to Skr84.00.

Haldex has had a rising earnings curve over the past few quarters and CEO Jay C. Longbottom believes that the positive trend will continue in future. The company has not changed its vision for the future since the interim report in July and have not seen any impact from market turmoil in August. Haldex shares were down 1.9 percent to Skr30.80.

AstraZeneca has presented negative results from the SATURN study whose purpose was to measure the effect of cholesterol-lowering Crestor breaker on the development of atherosclerosis in high risk patients. The primary goal was not reached as such Astra fell 3.1 percent to Skr290.90.
More pharmaceutical information came from Aerocrine, whose shares trading was halted on Thursday, after the American Thoracic Society, ATS published official guidelines with strong recommendations for the method in the treatment of asthma as the company has developed.
Aerocrine stands by the view that the existing capital is sufficient for 12 months.
As such Aerocrine became one of Friday’s winners with a gain of 9.5 percent to Skr11.00.

Arise Windpower also rose by 1.4 percent to Skr37.00. Macquarie Equity Research initiates coverage of the company to Outperform recommendation and target price Skr49.20.
By Team

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