WEEKLY UPDATE – "We have a difficult situation on the international financial markets", Sweden's Finance Minister says as Stockholm stocks dive.

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Stocks in Sweden suffered heavy losses during the week, with Stockholm shedding more than 11 percent, after a shock plunge on Wall Street Thursday and increased concern about Europe's mounting debt troubles. The OMX Stockholm 30 index closed down 3.34 percent Friday.

Sweden’s Finance Minister Anders Borg said that “we have a difficult situation on the international financial markets” but that Sweden is fully prepared to handle any emergency resulting from the eurozone chrisis.

Meanwhile US regulators said that they have launched an investigation into the dizzling Wall Street plunge that left investors shaken after a wave of panic that smashed confidence on world markets.

"What's happening now is somewhat reminiscent of how liquidity dried up in connection with Lehman Brothers in the autumn of 2008," Leif Lindahl, head of Danske Markets, told business daily Dageisn Industri. "I really believe that the markets need is a period with no new negative shocks”.

Robert Bergqvist, chief economist at SEB, told the TT news agency that many small investors probably will turn their back on the stock market.

"It is the most likely scenario when you had so sharp movements in the U.S. yesterday and we had a big event in recent days," he said. "I cannot see anyone in this situation who would go in and take the opportunity to buy shares. As the situation stands, I think many will sit on the sidelines of the stock market today."

Scandinavian airline SAS was down 1 percent Friday after saying that its traffic was “significantly affected” by the volcanic air travel chaos and earnings are expected to be negative.

Telecom giant Ericsson was slightly in the red after being downgraded by JP Morgan. Swedish-Swiss ABB gained after buoyant recommendations by ING.

Swedish construction company Skanska posted a 78 percent rise in net profit and said it was starting to see a recovery in orders from the construction sector. Still, analysts said the result was “a bit weak” and shares fell almost 3 percent.

SSAB Svenskt Stål AB, the world’s largest supplier of high-tensile steel, on Tuesday posted a surprise first quarter profit and said it expects demand to increase. Stocks swelled 1.2 percent.

Sandvik, the world's largest maker of metal-cutting tools, on Tuesday reported it swung to a first-quarter profit and posted a 30 percent rise in order intake. Still, stock shares dipped more than 4 percent as new orders were below expectations.

Securitas, the world's largest security services firm, said its first-quarter net profit dropped 12 percent, mainly due to lower sales. The result was in line with expectations and the stock closed down 0.3 percent Tuesday.

Since the turn of the year the OMX Stockholm 30 index is now almost flat.

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