Swedish fashion retailer expected to gain after a gloomy autumn.

Swedish fashion retailer is the most popular stock among players on the Stockholm exchange, according to Nordic regions largest online stockbroker Nordnet, as the company is expected to perform well next year after a dull autumn.

Swedish investors sold more stocks than what they bought in December. But it’s not a sign of negative outlooks.

“People are taking profits in stocks that have performed well during the year and are realizing losses from previous years”, Johan Tidestad, head of Nordnet in Sweden, said. “On the buy side here’s a tendency to pick sectors that haven’t kept up with the upturn”, he added.

Hennes & Mauritz sales have disappointed for several months as shoppers sought cheaper alternative, sending stock prices plunging. Compared to a year ago H&M; is up 30 percent while the OMX Stockholm 30 index is up more than 45 percent. During the last three month H&M; has only gained 1.5 percent and has dropped 4.5 percent in December.

In November H&M; undershot expectations with a 9 percent fall in same-store sales. However, sales picked up in the first two weeks of December, rising around 11 percent.

"It is also also positive that they opened 250 stores in the full year, while they had guided for 240”, Soren Lontoft Hansen, analyst at Sydbank, told Reuters. "That shows H&M; is using the economic downturn to strengthen their position."

Swedbank, Ericsson och Boliden showed the largest trading volumes in December while investors sold off AstraZeneca, Boliden and Skanska.

Most bought stocks
1. H&M;
2. Hakon Invest
3. Hufvudstaden
4. Swedbank
5. Stora Enso
6. Kinnevik
7. Ericsson
8. Volvo
9. Öresund
10. Kungsleden

Most sold stocks
1. AstraZeneca
2. Boliden
3. Skanska
4. Nokia
5. MTG
6. ABB
7. Atlas Copco
8. Investor
9. Sandvik
10. Alliance Oil
Source: Nordnet (Dec 2009)