STOCK MARKET – Stocks at the Stockholm exchange are expected to gain 15 - 20 percent this year despite last weeks dip, analyst said.

Stocks at the Stockholm exchange plunged during the first days of October after gloomy reports from across the Atlantic. Disappointing US manufacturing data raised anxiety that economic recovery is slower than previously thought, making analysts talk about "collapse on Wall Street". On Friday’s midday trading OMX Stockholm 30 was down 3.40 percent compared to a week ago.

The index continued to fall on Friday ahead of a report that may show the jobless rate in America climbed to almost 10 percent in September, a 26-year high.

Still, Peter Malmqvist, independent stock market analyst, was not worried. He believes that fundamental economic statistics still are pointing in a positive direction and that Stockholm exchange is heading for further growth.

“This is a blowback on an upward market. It’s not the beginning of a new downward trend”, he told The Swedish Wire. “I believe the Stockholm exchange will gain 15 – 20 percent before the turn of the year from current levels”.

In a long perspective stocks are not expensive at the moment considering earning outlooks, he explained. The recovery is following patterns from earlier downturns while extremely low interest rates makes few investors turn their backs to stock markets in favor of state bonds.

On Thursday Europe set a deadline to end economic pump priming with a pledge to tackle member states' bloated deficits in 2011, the keystone of exit strategies. However, Peter Malmqvist expects most central banks to keep interest rates low and that few finance ministers will slash stimuli as long as unemployment rates are rising.

On Friday Truck maker Volvo AB fell after reporting a 32.6 percent dip on the North American market. Electrolux and Husqvarna fell on negative US statistic.

Ski facilities operator Skistar fell after reporting a 147 million kronor ($20 million) loss.

Since the turn of the year OMX Stockholm 30 is up 31.6 percent.

This article has been published at The Swedish Wire and Nasdaq OMX Nordic.