Stockholm Stock Exchange: closed up after shaky trading day
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Monday, 15 August 2011
Stockholm Stock Exchange was swaying a bit but finally closed up on Monday after an American and a Norwegian bids, both with high premiums, contributed positively to the stock market mood. Even leading indexes in Europe were also ending the day in positive territory.
"It's a pretty broad upturn, a rebound, and the high bids may have caused the market wake up to the industrial players as then thing is that it's cheaper now, "said one share strategist on the Stockholm stock market to market news agency Direkt.
At close, the OMXS30 index was up 1.0 percent to 967.6 points. Turnover on the Stockholm stock exchange was Skr12.2 billion.
The big event on the market was that led the market to develop some confidence was Google's bid for Motorola Mobility for $12.5 billion, 63 percent of market capitalization.
Nokia shares rose by over 10 percent immediately after the statement and ended 9.2 percent up at Skr37:93.
Analysts were divided on how the purchase could affect Nokia. A Finnish view was that increase exuberance in Nokia now seems that Google has an ambition to break into the mobile phone market and Nokia's low-cost phones may be of interest to them.
Swedish analysts argued instead that the bid is Google's next move in this summer's patent war, which among other Ericsson PINCH Nortel's patent portfolio is in the eyes of Google. Ericsson shares ended 1.8 percent down, as one of the few lowly perfumed OMXS30 companies, and its shares ended at the day at Skr72:65.
H & M B shares were also down, but only by 0.1 percent to Skr 201:70. Clothes giant reported that sales in comparable stores declined by 6 percent in July. Analysts had in terms of the comparable sales expected a decline of 4.4 percent.
On Monday some data was released from the both Sweden and the United States.
Statistics Sweden reported in the morning of that Swedish industrial production fell 3.3 percent in June compared with May. There was a broad decline that included many groups, but the weakest was the development of the pharmaceutical industry, where output fell 17.4 percent. Stockholm Stock Exchange's pharmaceutical giant AstraZeneca was up by 1.1 percent to Skr 297:60.
Measured on an annual basis, output growth fell to 6.4 percent in June, from 13.2 percent in May. It was the weakest growth since the industrial activities began again to show positive growth rates on an annual basis, in March 2010.
From the USA came figures on industrial production in the New York region which was reported to be worse than expected.
"The Exchange does not seem to have taken little notice of it. There may have been unofficial expectations, "pondered stock and shares strategists.
Two companies announced CEO departures on Monday. East Capital Explorer’s Gert Tiivas will be private equity manager of East Capital Baltic, and East Capital Explorer went up by 4.2 percent to Skr55:75.
Less cheerful was the news received that CDON loses its CEO Mikael Olander. The share fell by 1.5 percent to Skr 33:70.
By Scancomark.se Team
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