Surprisingly strong operating margins posted by SKF, Atlas Copco and Alfa Laval made the Stockholm exchange climb.

The Stockholm stock exchange was up slightly more than 1 percent on Friday’s midday trading compared to a week ago. After a dull Thursday the exchange made comeback on Friday. The company report season was in full bloom -- more than half of the listed companies posted earnings during the week -- and most of the news was encouraging.

“It’s been a very hectic week”, Esbjörn Lundevall, Head of Equity Research at SEB Private Banking, told The Swedish Wire. “Most of the reports have been good although markets have developed rather cautiously”.

Industrial companies such as SKF, Atlas Copco and Alfa Laval impressed with excellent operating margins, Esbjörn Lundevall pointed out as the most significant marker of the week. Also Autoliv and Volvo showed good margins.

On Friday Volvo Group, the world's second-biggest truck maker, rose 6 percent after its chief executive Leif Johansson said “the decline in demand has bottomed out and that we are now beginning a gradual recovery”. The truck maker made a net loss of 2.92 billion kronor ($429 million) that was smaller than expected.

Also defense company Saab, maker of the Gripen fighter jet, rallied after posting a better-than-expected profit. The same day garden and construction toolmaker Husqvarna fell heavily as it said it would cut more jobs in the face of the market downturn.

Ericsson plunged more than 8 percent on Thursday after posting a disappointing third-quarter result. The Stockholm-based telecom giant reported net profit of 810 million kronor ($118 million), down from 2.84 billion kronor a year earlier, which was clearly below expectations.

“Ericsson’s margins were good but its sale was clearly a setback. The company was also more careful in its outlook than previously”, Esbjörn Lundevall said.

However, on Friday Ericsson’s stock made comeback after Goldman Sachs raised its recommendations.

Reports from Swedbank and SEB made it clear that trends are more important than results. Swedbank rose after saying that the amount of bad loans was slowing – although posting worse-than-expected losses. SEB posted a better-than-expected profit but fell on the exchange after revealing slimmer net interest income.

Sweden's central bank held its key interest rate at a record low of 0.25 percent, while also raising its economic growth forecast for the coming years. "The recovery has begun, but it will take time," the Riksbank said. Also leaders of large Swedish enterprises said that the worst of the economic crisis has passed, according to the statistics office, and that the recovery in some cases has been dramatic. Although it didn’t come as a surprise for the stock market it was another important indicator that the recession is slowly fading.

Since the turn of the year OMX Stockholm 30 is it 41.50 percent.

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