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)
Oil giants fight for licenses off Norway
A total of 44 energy groups, including StatoilHydro, Shell and ExxonMobil have applied for oil and gas production licenses on the Norwegian continental shelf.
House prices continue up in Sweden
Real estate prices swelled 4 percent during the last three month although still being below last year’s level.
Chinese Geely NOT interested in Volvo Cars
Chinese car maker Geely has withdrawn its offer to buy Ford Motor's Sweden-based Volvo Cars.
Environment talks with US "progressing slowly"
Denmark's climate minister will travel to Washington on Thursday to convince the US Senate of the urgency of talks to clinch a deal at the UN climate summit in Copenhagen.
Swedish PM: Bankers' bonus culture must stop
Swedish Prime Minister Fredrik Reinfeldt said that the culture of large banking bonuses "must come to an end" as he opened a new parliamentary session.
Swede gets US life term for terror camp plot
A court in New York sentenced a Lebanese-born Swede to life imprisonment Tuesday for trying to set up a militant training camp for the Al-Qaeda network in the United States.
Volvo Cars: “The recession is over”
Volvo Cars may finally have reached the turning point as sales increased last month.
• Chinese Geely wants to buy Volvo Cars • Volvo Cars to ink €198 million loan
Volvo Cars to ink €198 million loan
Sweden-based Volvo Cars is expected to get a capital injection backed by guarantees from the Flemish government.
Sweden wants EU to lift 'snus' tobacco ban
As countries across the EU curb smoking, Sweden is fighting to get a European-wide ban lifted on 'snus,' a moist tobacco popular across Scandinavia that is sucked rather than chewed or smoked.
Bosnian Serb PM meets war criminal in Sweden
Bosnian Serb Prime Minister Milorad Dodik will visit ex-president Biljana Plavsic in her Swedish jail.
Volvo cuts CO2 emissions to record low
Sweden-based Volvo Cars has undercut the magical 100 grams carbon dioxide limit for the first time ever.
Sweden wants Afghan conference held in Kabul
The EU would like to see a planned international conference on Afghanistan held in Kabul, Sweden's foreign minister Carl Bildt said.
Norway's PM Jens Stoltenberg claims victory
Norway's left-wing coalition held onto a razor-thin majority.
• Jens vs Jensen clash in Norway vote • Norway turns deaf ear to Brussels
