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Powerful kickoff of the Stockholm Stock Exchange for the start of the week


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Monday, 29 August 2011
Stockholm stock exchange took a significant step forward on Monday, as the leading European stock exchanges, in the wake of the improvement in risk appetite that followed Fed Chairman Ben Bernanke's speech on Friday, a rise which was boosted by a better private consumption figure in the U.S. in July than expected.

The OMXS30 index closed up 2.5 percent to 927.4. Turnover on the Stockholm Stock Exchange was Skr8.3 billion, while the combined net sale, which also includes Burgundy, Chi-X, Turquoise and Bats, amounted to Skr10.7 billion.

"Bernanke's speech was well received. Either because he gave a positive description of the U.S. economic situation or for ensuring that there is an opening for further monetary easing in September. It is not clear if this is what has driven the markets. It's very clear that there is the buying more of cyclical products today, although it is not entirely clear as to why, ” said Lars S�derfjell, equity strategist at the Bank of �land, to a Swedish news agency,  Direkt.

The increasing lower sales of volume today in Stockholm could be tied to the fact that London has close for holiday on Monday. On Monday afternoon, U.S. data showed that consumer spending rose 0.8 percent in July, compared with the month before. According to Bloomberg News analysts on average had expected that consumption would rise by 0.5 percent.

In Sweden though, engineering companies were found on top of a broad upturn in Stockholm. SSAB A shares rose by 4.3 percent to Skr60:20 and SKF B shares also moves up 2.8 percent to Skr141. Husqvarna B shares lifted 5.4 percent, to Skr31:67, on news that the board and Magnus Yngen decided to launch the recruitment of a new CEO.

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The construction sector was another winner with JM rising 5 percent, followed by NCC B shares and Peab B shares increasing 4.8 and 4.3 percent. Skanska, which on Monday announced a Finnish and a Norwegian construction orders worth some one billion, saw its class B shares lift 4.2 per cent, to Skr92:80.

Nordea took the lead in the banking sector, up 3.5 percent at Skr57:50, after having begun negotiations to cut workforce by about 2,000 people.

It seems to be a trend as in the European banking sector in which the bank wants to use this as a route to review costs, in order to reach the magical 15 percent level of profitability. Nordea is merely trying to get there according to some analysts who commented on the news this morning that the bank was cutting 2000 jobs.

Deutsche Bank forecasts that if the measure is fully implemented, it can lift Nordea's earnings per share by 3-5 percent.
Swedbank, which announced that it was maintaining its share repurchases, was supported by the financial market minister, Peter Norman, who by all means argued that the banks has been  ensuring that it had high capital adequacy.
"Swedbank reflects the high level of ambition regarding capital adequacy. That's good. It is important for confidence, both for individual banks as the banking sector to ensure a high capital adequacy, "said Peter Norman

Swedbank A shares rose 2.8 percent to Skr 83:45. SHB A shares and SEB A shares step up 2.2 and 2.0 percent respectively.

More defensive shares in Stockholm today were Astra Zeneca and Tele2 which advanced 3.3 percent and 2 percent respectively, while Swedish Match went against the grain with a fall of 0.2 percent.
By Scancomark.se team


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