WEEKLY UPDATE - Stocks in Stockholm rose after increased business confidence data, following a week of political turbulence.

The OMX Stockholm 30 index closed up 2 percent in Friday. Compared to last week the index was up 1.61 percent. US stocks soared in opening trade on Friday, led by Nike's strong earnings and better than expected manufacturing data as well as a rise in German business confidence.

After Sunday's general election, which resulted in a hung parliament with the far-right as kingmaker, investors feared a sharp fall in the Swedish currency, rising bond yields and diving stock prices. However, prices were facing only mild pressure.

"Markets are likely to remember quite quickly how robust the Swedish political system is. The (lows) recorded in the krona overnight might already have constituted the peak of the election effect", analysts at Commerzbank in Frankfurt said in a note.

Sweden's krona looks set to withstand a sharp burst of political uncertainty in the country as traders seem to rely on its sound public finances and robust parliamentary procedures.

Sweden’s upward business cycle gained more ground in second quarter as the economy continued its strong development in many areas, the statistics office concluded Thursday in a sum-up of the country’s economy. Household optimism has maintained and investments distinctly increased while production in business accelerated.

Investment firm HQ rallied 40 percent Friday after an internal investigation suggested there may be grounds for compensation for damages. HQ Bank was forced into involuntary liquidation and saved in a last-minute rescue bid by its competitor Carnegie. The Swedish Economic Crime Authority has previously launched a criminal investigation into suspected accounting crimes and fraud at the troubled investment bank.

Shares in Electrolux, of the world's second biggest home appliances maker, declined slightly Thursaday after its CEO Hans Stråberg said he would step down at year-end after nearly a decade at the post. The company said it had appointed Keith McLoughlin – today responsible for R&D;, Manufacturing and Purchasing for Electrolux – as new CEO and President.

Pharmaceutical company BioPhausia rose 14 percent Thursday after announcing it had signed an agreement to sell its portfolio of OTC products to Meda for a total of 190 million kronor.

Eniro AB, the biggest yellow-pages publisher in the Nordics, may be forced to raise 2.5 billion kronor ($365 million) through a share sale to avoid its creditors taking over the company, business daily Dagens Industri said Wednesday. The company’s stock shares were down 36 percent in midday trading.

Nokia declined 1.9 percent after rumors phones may push back its N8 model because of software glitches. Nokia denied the gissip.

Swedbank rose 1.2 percent Tuesday, extending Monday’s 2.5 percent gain. The bank was raised to “neutral” from “sell” at Goldman Sachs. The bank also raised its outlook on the Baltic economy, where Swedebank is the biggest leder.

Since the turn of the year the OMX Stockholm 30 index is up 15.12 percent.