Stockholm Stock Exchange continues to perform below expectation and poor result means the Exchange has to sink further
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Monday, 18 July 2011
After a weak opening of the Stockholm Stock Exchange, trading just went down further around lunchtime on Monday. The already dismal stock market mood was even worse since Atlas Copco reported a result that did not meet expectations.
The Stockholm OMXS 30 index was down 2.0 percent to 1058.5. Turnover on the Stockholm Stock Exchange amounted to Skr7.6 billion, while consolidated sales, which also include various forms of indicators, amounted to Skr9.9 billion.
If the Swedish economy is doing well then the question we have seen seeking answer for is why is the stock market doing this very bad? Since the who year, the Stockholm stock exchange, the market which gave Swedish people enormous wealth last years is struggling to get its head above the water.
As the failing sequel continues, Atlas Copco's report which came out in disappointment saw its Class A shares fell 7.3 percent to Skr151. Shortly before the report was released, at midday, its shares traded at shares traded at around Skr161 and Skr162.
The crux of the matter was that Atlas Copco's profit before tax was Skr4.081 million for the second quarter of 2011. Analysts had expected a profit before tax of Skr4.341 million, according to various consensuses. That was therefore not enough.
Other engineering companies were also trading drawn as well. Sandvik fell 3.9 percent to Skr101:40, Alfa Laval, retreated 3.3 percent to Skr130:60 and SKF was 2.5 percent lower at Skr169:60 even though it reported a better that expected profits last week.
On the gloomy trend on OMXS30 was the only AstraZeneca has stayed above zero with a rise of 0.2 per cent to Skr 322:30.
Besides the steady stream of reports received on Monday, the EUR crisis and Friday's publication of the EBA's stress tests for European banks were in continued focus.
The tests showed that eight out of 91 banks failed to meet the requirements, including five Spanish and two Greek.
The uncertain progress on debt problems in Europe and the U.S. also had notable impact on the commodities market.
The spot price of gold was recorded this morning for the first time ever, over $1,600 per ounce. Gold prices rose for the eleventh consecutive day, the longest upturn since the summer of 1980.
From other Swedish companies that have reported their results are notable that.
Axfood reported results that were slightly better than analysts expected as the company forecasts that the market conditions during the remainder of the year remain unchanged with the high price competition and price-conscious customers. Shares fell 1.1 percent to Skr225:80.
Intrum Justitia shares rose 5.8 percent at Skr96:50 since the company reported a profit that surpassed analysts' expectations.
Finnveden, which is a subcontractor to the automotive industry, rose 3.1 percent to Skr46:00 after having submitted a result that was significantly better than for the same period last year.
Lindab's Report did not meet expectation as such its shares fell 5.4 percent to Skr60:30.
Newspaper Company Metro International reported earnings that were better than for the corresponding period last year. At the company's conference call the CEO, Per Mikael Jensen, said that higher newsprint prices could affect Metro's profitability during the remainder of 2011. Metro International B shares dropped 6.4 percent to Skr 1:03.
Loomis announced a non-recurring item of -53 million in profit for the second quarter. This was influenced by incorrect values of assets and liabilities in the Austrian subsidiary, which persisted and accumulated over several years. Loomis B share fell 2.3 percent to Skr 86:25.
The Stockholm stock exchange has posted a yearly performance at today at -8.8 percent. This compared say with Dow Jones which is recording a positive performance of 7.8 percent.
By Scancomark.se Team
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