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Stockholm bourse ended Wednesday up after three dismal days low trading days


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Wednesday, 07 September 2011
After three trading days of negativity in the market in which the indexes ended in minus, the Stockholm stock market recoiled on Wednesday and ended up - substantially supported by positive news from Germany.

The trend was similar in the leading European stock exchanges. The OMXS30 Index closed at highest level, up 3.5 percent to 918 points. Turnover on the Stockholm Stock Exchange was Skr13.5 billion. The combined turnover, including Burgundy, Chi-X, Turquoise and Bats was Skr17.0 billion.

The German Constitutional Court rejected this morning to oppose the bailout for Greece and other eurozone countries. The implication of the decision is that Germany's participation in the aid is compatible with the constitution. Finance Minister Wolfgang Sch�uble said after the decision that there is broad parliamentary support for the rescue fund EFSF.

While the court approved Chancellor Angela Merkel's pledge to help backstop Greek debt, the court ruled for greater say for the parliament in future rescue decisions, which could slow the process of saving troubled euro members from collapse.

And Finland Prime Minister Jyrki Katainen said that if the demand for collateral from Greece fails, Finland would not contribute to a second bailout package.

The encouraging economic news from Germany also gave the markets a nice boost.
Further good news from Germany came in the form of industrial production statistics, which showed that production in July rose much more than expected.

Here at home the Swedish central bank, the Riksbank, as most had hopped, left the repo rate unchanged at 2.00 percent. The interest rate path was adjusted slightly downwards, which means that further rate hikes would be pushed a bit ahead.

The Swedish krona was reinforced by interest rate announcement, while bond yields were largely unchanged.

The exchange gains were led by the former long-suffering cyclical sectors. In particular, the automotive-related companies rose sharply both in the continent and in Sweden. H�gan�s B increased 6.3 percent to Skr 210:00 and Scania B shares rose 6.1 percent to Skr106:90. Trelleborg B shares advanced 5.5 percent to Skr 50:00.

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Other engineering companies that did well were the likes of Alfa Laval and Atlas Copco, with increases of 4.1 and 4.8 percent respectively.

The primary sector rose in line with oil and base metals climbing. Alliance Oil rose 6.8 percent to Skr77:20 and Boliden rose 5.4 percent to Skr 80:90.

The brightest star, however, Clas Ohlson, which ran just over 23 percent at Skr86:50 after a quarterly report that beat expectations. Profit before tax was 17 percent better than expected. Even August sales beat expectations with an overall increase of 10 percent over the same period last year, against the anticipated +4.8 percent, according to various analysts’ organisations. Clas Ohlson's quarterly figures were the "first good report, which beat expectations for over a year," said an analyst.

Another retail operator which took back some lost ground was clothing firms Kappahl, which rose over 17 percent to Skr18:20. By far the largest buyer was SEB Enskilda, which on Tuesday sank both recommendation price targets for the company.

The more defensive companies rose less than the index. Tele2 B shares rose 1.8 percent to Skr 137:50 and TeliaSonera 2.2 percent to Skr 44:82. The only OMXS30 Company that backed was Swedish Match which fell 0.9 percent to Skr 224:40.

Securitas, which kept Capital in London, was virtually unchanged at plus 0.2 percent to Skr56:10. CEO Alf G�ransson said to Swedish media that the proposed health care reform in the U.S. may raise its costs in the country with 10 to 12 percent.

Nibe business managers appeared on Wednesday's Capital day optimistic about the possibilities of over time, increase margins and volumes. Shares rose 3.9 percent to Skr 94:00.
By Scancomark.se Team


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