GE figures sink Stockholm bourse

A weak report from US white good giant General Electric sank the Stockholm bourse as the trading week ended on Friday. The OMXS index closed down 1.5 percent.

Falling share prices hit all business sectors and analysts are starting to talk more openly in terms of a recession in the USA.

Michigan University figures charting consumer confidence did little to lighten the mood. The Michigan index came in at 63.2 for April, the lowest figure since 1982 and down on economist forecasts of 69.0.

The OMXS index fell 1.5 percent to 312.0 points, the fourth consecutive day of negative figures. The index fell 2.5 percent over the course of the week, down 11.3 percent for the year to date.

Friday morning’s shaky start in Stockholm was made worse by Citigroup which lowered its recommendations for a swathe of major Swedish companies.

Ball-bearing firm SKF fell 3.9 percent to close at 116.75 ($19.6). Sandvik and Atlas Copco also suffered falling 3.1 percent to 102 kronor and 4.1 percent to 98.5 kronor respectively.

Telia Sonera won a court ruling which states that telecom sector rival Tele 2 has to pay them 500 million kronor. Telia Sonera’s share shot up on the news but fell back during the afternoon to close down 1.3 percent at 45.6 kronor. Tele 2 fell 0.4 percent to close at 114.75 kronor.

Biotech firm Q-med issued a warning that the North American and Asian markets for its products are forecast to develop slowly and will hit profits. Q-med’s share tumbled 13.9 percent to close at 37.9 kronor.

The mood was dark across the continent’s stock markets on Friday. Other leading European indices followed the negative trend as did Wall street.

London’s FTSE fell 1.2 percent to 5,895.5, Frankfurt’s DAX index fell 1.5 percent to 6,604.5, Paris’ CAC 40 dropped 1.3 percent to 4,797.93.

New York’s Dow Jones index fell 2 percent to close at 12,325.4 while the Nasdaq Composite dropped 2.6 percent to 2,290.2.


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.