The Best Investment Manager’s Daily Market Report: OMXS30 Up 0.7% as Major Companies Lead the Way
At around 12:30, the OMXS30 was up 0.7% to 2,466 with stocks worth about 3.6 billion SEK traded on the Stockholm Stock Exchange.
German DAX index and French CAC40 also advanced by 0.4% and 0.6% respectively.
Majority of companies within the OMXS30 were trading higher, with Nibe, SBB, and Kinnevik leading the way with gains of 2.0-3.9%.
Evolution and Investor were the most traded stocks on the Stockholm Stock Exchange, continuing their gains from Thursday, up 1.9% and 0.9% respectively.
The only company moving against the trend was the more defensive stock Essity, with a marginal decrease.
Outside the large-cap index, Skanska climbed around 1.5%. The construction company has signed a supplementary agreement in the US worth 2.1 billion SEK for the construction of a data center in the country, included in the US order intake for the third quarter.
Among the reporting companies, online snus and tobacco-free snus retailer, Haypp, surged after reporting an adjusted operating profit of 34.4 million SEK for the second quarter, up from 20.4 million in the same quarter last year. Revenue increased by 23%.
The stock was up over 10.5%.
At the same time, battery charging company Ctek advanced around 10% following its report. Operating profit turned positive, at +6 million SEK compared to -13 million last year. Organic growth was at 6%. Analyst firm Kepler Cheuvreux stated in an update that the growth exceeded their expectations.
Sector peers Zaptec and Garo added 1.1% and 4.4% respectively.
Lundin Gold rose about 1.9% after its quarterly report showed increased revenues and improved results. The company is now debt-free and has decided on a quarterly dividend of $0.20 per share, a doubling from before, and plans to distribute at least $0.20 per share quarterly going forward.
Furthermore, Vestum announced a new acquisition within its subsidiary Pump Supplies. The acquired company, PDAS, based in the UK, had a turnover of over 200 million SEK in its latest fiscal year.
Vestum’s stock soared over 6%.
Among other companies, lighting company Profoto Holdings saw gains. Despite near-term growth prospects being somewhat unclear, there is much to attract investors to what is described as a quality company.
On the flip side, Qleanair plummeted around 20% after reporting quarterly figures and delaying an order worth $2.5 million.
In terms of recommendations, Handelsbanken has resumed coverage of kitchen company Nobia, with a long-term outperform rating and a target price of 8 SEK. In the short term, the recommendation is hold.
Analysis:
Overall, the market saw positive movements with major companies driving the gains. Companies across various sectors reported strong results, leading to increased investor confidence. However, some companies experienced setbacks, highlighting the importance of thorough research and diversification in investment strategies. It is crucial for investors to stay informed about market developments and company performance to make well-informed decisions about their finances.