Shaky week in Stockholm as top might be nearing
STOCK MARKET – It’s been a wobbly week at the Stockholm stock exchange as actors fear that the top is looming nearer.
Almost a year after the crash of Lehman Brothers, setting the global financial system in shock, the OMX Stockholm 30 index has regained and is up almost 10 percent. Since the turn of the year the index has swelled more than 38 percent
However, the quick recovery from the worst financial crisis in modern time has made actors at the market more and more nervous about the fact that we might be getting closer to the peak.
“Trade has been very nervous this week”, Esbjörn Lundevall, Head of Equity Research at SEB Private Banking, told The Swedish Wire. "Although the exchange has gained during the week there’s been strange movements indication that the market is anxious”.
Adding to the turbulence, US Treasury secretary Tim Geithner said on Thursday that the country is starting to pare back its emergency support for banks and financial markets. Still, Esbjörn Lundevall rather saw it as a sign of strength.
“It’s hard to accept that the patient is well as long as she’s on the respirator”, he explained.
Esbjörn Lundevall still believes there’s room for further growth, as the recovery must be seen in the light of the total collapse. The companies’ earning is also expected to level out at a higher level than in the last crisis.
Risk appetite seems to be increasing among Swedish investors. Total net sales of funds amounted to 7.5 billion kronor (€735 million, $1 billion) last month, the largest inflow ever recorded in the month of August, the Swedish Investment Fund Association said Thursday.
In midday trading on Friday the OMX Stockholm index was up 0.15 percent after positive signals from China, where industrial production rose at a faster pace than forecast, and gloomy news from Japan where economy expands less than expected. Compared to a week ago the index was up slightly more than 4 percent.
During the week Metro International, the global free newspaper publisher, rallied almost 50 percent after raised recommendation from SEB. Builders, such as JM and NCC, gained after positive signals about rising house prices. Also stocks characteristically sensitive to long-term market fluctuations, such as Sandvik and SSAB, rose.
This article has been published at The Swedish Wire and Nasdaq OMX Nordic.
Last Updated (Monday, 14 September 2009 08:10)
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