WEEKLY UPDATE – Investors on the Stockholm stock exchange took profit on a skimpy market ahead of the new year.

Activity on the Stockholm stock exchange was slow Wednesday in subdued trade before New Year holidays as investors took profits after striking 2009 high points on the main European markets the previous day.

Trading volumes were thin during the day's after Christmas and the OMX Stockholm 30 index is up 0.43 percent at the Wednesday midday trading compared to a week ago.Still, a burst of economic confidence set off an end-of-year rally across global markets – pushing stock prizes back to the same levels as a year ago when economic gloom sent them plunging.

"We won't know for certain if this is a prelude to an even bigger move when the market is at full strength again after the holiday, but it sure does seem like there is some funny money driving things at the moment," Patrick O'Hare of Briefing.com told AFP, noting skimpy trading volumes ahead of the New Year holiday.

Trade in Stockholm is also affected by tax related moves ahead of the new tax year, Swedish analysts say.

Swedish stocks has gained more than 45 percent since the turn of the year and analysts believe in rising prices during next year as global markets exit recession, company earnings are rising and investors sentiments progress.

Rising prices on copper, which reached the highest level in nearly 16 months, made Lundin Mining drop Wednesday while mining and smelting company Boliden rose.

Scandinavian airline SAS dropped 1 percent after a report in Danish business daily Børsen claiming that the airline already has spend most of the 6 billion kronor ($850 million) it got from its last rights issue, raising concerns that further capital injections may be required.

Engineering companies, such as the world’s biggest maker of air compressors Atlas Copco, and other sectors sensitive to market fluctuations has gained during the last few days on stable outlooks.

Operator Tele 2 rose Monday after telecommunications provider TeliaSonera agreed to pay Tele2 Sweden 340 million kronor as part of a settlement over an interconnection dispute.

Global financial markets face shortened trade this week because of year-end holiday celebrations. OMX Stockholm is open Wednesday but closed Thursday and Friday.

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