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Stockholm Stock Exchange falls heavy in early thursday trading


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Thursday, 18 August 2011
The Stockholm Stock Exchange, as elsewhere in Europe, accelerated in the morning and started racing t the bottom. By 11 o'clock, local time, the OMXS index plummeted by nearly three percent.

Above all, the cyclically sensitive manufacturing shares were falling uncontrollably to 4-5 percent, as a result of concerns about a slowing world economic growth. Also bank shares were also struggling.

Continues talks of a weakening US economy on Wednesday however gave a lower risk mood in both the late U.S. trade and early Thursday's Asian trading.

Richard Fisher and Charles Plosser, Federal Reserve governors in Dallas and Philadelphia, argued that the Fed should not provide much stimulus to the economy in speeches on Wednesday.

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In Stockholm cyclical companies found themselves among the losers. Truck manufacturer Scania B and Volvo B shares fell 3.4 and 3.3 percent to Skr107:20 and Skr78:95 respectively.

Sandvik was down 4.4 percent at Skr80:70, steel maker SSAB A sharres fell 2.9 percent to Skr65:05 and Atlas Copco A shares dropped 2.7 percent to Skr135:50.

The Swedish FSA’s (Finansinspektionen) chief economist Lars Frisell told Bloomberg News that the Swedish banks must do more preparatory steps for any economy changes. The risk is that the debt crisis freezes interbank markets and shut down sources of financing, according to him.
"There is not much for the interbank market which may still collapse even if the situation is not very serious at the moment. It feels like it's very easy that everything will freeze, "said Lars Frisell.

This could be the driving force behind the fall of bank shares. SEB A shares fell 3.4 percent to Skr38:22. Swedbank A shares was down 2.5 percent to Skr89:55. Nordea and Handelsbanken A shares dropped 2.6 and 1.9 percent, to Skr57:40 and Skr174:50 respectively.

On Wednesday evening, Reuters said that Nokia, Apple and Qualcomm are among the companies that are interested in buying Interdigital.
Nokia shares went down 0.8 percent at Skr37:22 while Ericsson B shares dropped 0.8 percent to Skr 69:65.

Among the companies that lost less than the index were Getinge B and AstraZeneca, which were both down 0.6 percent, while TeliaSonera was down 1.3 percent.
By Scancomark.se Team



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