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Indices: / OMXR 0.00% / OMXV 0.00% / OMXT 0.00% / OMXS30 0.00% / OMXH25 0.00% / MICEX 0.00% Stocks: VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% / VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% Porfolios: StraterS 0.00% / koncik 0.00% / Laime 0.00% / Life 0.00% / RIX 0.00%
Stockholm Stock Market Overview (OMX) 6/11/2006 – 10/11/2006
During the week 45 the OMX Stockholm 30 (OMXS30) index has changed 1.34%, despite high rates till Friday (10/11/2006), when it sharply went down. However, there are three companies that are worth of our attention. All of them have steadily growing share prices starting from the last week. Firstly, we will describe the behavior of the Sandvik (SAND D) share prices, which have had the highest change during week 45. A little behind of Sandvik (SAND D) goes Assa Abloy B (ASSA B) and Volvo B (VOLV B), which will be described as the second and the third respectively.
Sandvik (SAND D) has started this week at share price of 9.65 € and had the biggest increase on the Stockholm Stock exchange by 6.55%. That’s is the result of the previous weeks’ events like Third Quarter Report and opening a new regional head-office in the South Asia. In the Third Quarter report Sandvik (SAND D) has claimed the strong demand on company’s production, increase in net profit for the period by 21% and growth in profit per share by 21%. Then the new office was opened in Singapore, which was built to serve more clients in the fast developing area, provide more benefits and decrease maintenance costs for the old building. These facts guaranteed the fast growth in share price in the last weeks including week 45. As none of the serious events have happened in the last week, share price will stabilize around the existing level, namely 10.56€, or even increase due to the facts described above.
The “second place” this week takes Assa Abloy B (ASSA B) with increase in the share price by 4.57%. The company has had the highest increase in share price especially on Thursday and Friday. This is the effect of the January-September report announced on the combined investors’ meeting on the 8th of November. It stated the stable sales of the company’s production (+10%), increase in operating income (+12%) and 7% growth in profit per share. However, the net income plummeted noticeably by 48%, which slowed down the possible share price rocketing. Next week shares will be under the influence of this report, and, moreover, share price is predicted to go up due to the report results.
Despite other companies, Volvo B (VOLV B) has had a very busy week with lots of events that distinctly affected the share price. It started with 49.77 € and ended the week 45 with 51.69€ per share having the most notable growth of 1.92 € per share. During the last week Volvo B (VOLV B) has made a strategic decision on closure of Volvo Aero’s operations in Bromma. This fact was highly appreciated by investors, because in recent years the volumes of the engines overhauled in Bromma have declined sharply and can’t reach the levels required. As a result, increase in share price during week 45. On the 10th of November Volvo B (VOLV B) has certified new Volvo engine family that will meet new lower emission standards, thus, keep producing and increasing sales of Volvo trucks. On the same day Volvo Truck Corporations through its subsidiary Volvo B (VOLV B) opened a new truck center in Sarajevo that is the optimal place for truck, spare parts sales in that region. Therefore, company’s share price might be affected by these two facts, the new engine family and the new truck center, which will lead to sharp increase in the share price.
By Dmitry Golubnichy
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