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OMX

Stock exchange firm’s profits up

OMX, which owns and operates stock exchanges in Stockholm, Helsinki, Copenhagen and the Baltic countries, has posted a first quarter net profit of 319 million kronor for 2006.

The total is an increase of more than 67 percent compared to the same period in 2005, when profits reached 190 million kronor.

Turnover for the company, which also sells IT systems for bourses, increased to 903 million kronor.

In the year-ago period, group turnover equalled 742 million kronor.

Increased revenues are attributed to market development and trading volumes in Copenhagen, Helsinki and Stockholm, the company stated.

It also forecasts that income from the IT unit will remain at the same level during the second quarter of 2006.

The same will be true, according to the company, for the group’s total costs in the upcoming quarter.

TT/The Local

STOCKS

Stockholm stock market hits new all-time high

The Stockholm stock exchange closed at a record high on Wednesday, with the OMXS index climbing 1.4 percent to smash the previous record set in 2007.

Stockholm stock market hits new all-time high

The OMXS closed at 430.6, besting by more than three points the previous record of 427.2 set in July 2007.

"Finally, after more than five years, we've come up to the all-time high," Nordea stock strategist Martin Guri told the TT news agency.

The Stockholm stock market's advanced was in line with developments on other exchanges around the world, and can be attributed to a new World Bank forecast indicting advances in global economic growth. Strong retail sales statistics from the United States helped as well.

Guri rejected any notion that the Stockholm exchange's recent rise was any sort of bubble, but is simply a continuation of a strong 2013.

"We had the worst financial and economic crisis since the 1930s. Now we can say that we've left it behind and are moving on to the next chapter," he said.

"The market could rise somewhere between ten and 20 percent this year."

He added that there are many signs of economic improvements, and while economic growth may not be strong, risks have deteriorated, bolstering investor confidence. 

Guri cited central banks in the US, Japan, and the eurozone for stimulating stock market growth.

"They've promised financial markets they plan to keep interest rates low," he said.

Wednesday's OMXS rise was led by heavyweights such as retailer H&M and bank Nordea, which climbed 2.7 percent and three percent, respectively, as the Swedish fashion retailer reported better than expected sales results for December.

Other market winners on Wednesday included pharmaceutical firm AstraZeneca, telecom equipment maker Ericsson, and truck maker Scania, all of which rose by around two percent.

The Swedish krona weakened slightly against the dollar, which can now buy 6.48 kronor. The krona-euro exchange rate remain unchanged, at 8.80 kronor to the euro.

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