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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) 19/02/2007 – 23/02/2007
This week was far from active; the share prices for almost all companies either stayed the same at the end of the period or were rising or declining due to the significant activities in previous weeks. The increase in the OMX Stockholm 30 (OMXS30) index and OMX Stockholm Benchmark (OMXSB) remained positive, but changed only for 0.27% and 0.25% severally. The most successful gainer on Stockholm Stock Exchange during week 8 was Skanska B (SKA B) with the +4.64% growth in its share price. Assa Abloy B (ASSA B) will be covered as the second company in this overview, and the third one will be Svenska Handelsbanken A (SVH A), which had a quite tricky situation while fluctuating in 6% range of the nominal value of its share price.
The share price of Skanska B (SKA B) started to increase right from the beginning of week 8 led by the news about Skanska B is leaving the Russian market. On one hand it should decrease the price of the share; however, according to Peter Gimbe, senior vice president, the company had lost dozens of millions of Sweden Kronors already. In order to avoid future losses and to focus on countries more profitable for its operations Swedish construction concern decided to quite the Russian market. This fact made the share price rise at the 0.32% constant rate each following day till February 23, when Skanska B was contracted to build a new section of railway in Norway. The contract amount is about €59 mil and is included in order bookings of the first quarter 2007. This conceivably affected the share price level increase by +4.64% in the end of this period and would affect it in the nearest future.
Assa Abloy B (ASSA B) had even more obvious reasons for the rising demand for its shares. It managed to close week 8 with the price of €17.16 while the change during the week was +2.24%. The explanation for that is the company’s joining American Transport Association (APTA), the international association of 1,600 member organizations. APTA is the leading force in advancing public transport in North America. Assa Abloy B Head administration explains, that membership would allow them to meet and network with industry representatives throughout North America. They also consider it a unique platform to raise our visibility and strengthen their reputation in the important market. This definitely had a positive effect on the share price, but it’s doubtful that the effect would last for a long time.
The banking industry was rather unstable this week due to Latvian rumors of the currency devaluation, which affected banks like Swedbank A (SWED A) and SEB A (SEB A) that have daughter-companies there. In addition to this Svenska Handelsbanken A (SHB A) and its CEO said that sees margin pressure on mortgage loans for the company to continue. The market reacted immediately, and by Wednesday (21/02/2007) the share price was equal €22.22, which is 5.92% less than the week’s starting price. To recover and release the pressure of the mortgage loans Svenska Handelsbanken A decided to sell the jointly owned Swedish payment card processing company. The company estimates that its capital gain from the sale will amount around €8.07 mil. Obviously this has raised the share price by 1.94% till the end of the week and could help company to get out of crisis. However, the future for Svenska Handelsbanken A and its share prices still doesn’t look promising as it could be.
By Dmitro Golubnichy
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