Euroclear, the leading provider of post-trade services, recently released its report on share ownership in Sweden for the year 2024. This report provides valuable insights into the trends and patterns of stock ownership in the country, revealing some key highlights that are worth noting.
One significant finding from the report is the record number of retail investors, also known as folkaktier, in Sweden. Currently, there are 28 companies with at least 100,000 shareholders, indicating a growing interest in stock ownership among the general population.
Another noteworthy trend is the increasing market value of the average stock portfolio, which now stands at 540,400 Swedish kronor. This represents a 4% increase compared to the previous year, with the total value of stocks owned by Swedish individuals reaching around 1.2 trillion kronor. This growth in market value reflects a positive outlook on the Swedish stock market and suggests a strong investor sentiment.
However, despite the increase in market value, the report also highlights a concerning trend of diminishing diversification among Swedish investors. The average number of stocks held by investors has decreased from 5.3 to 5.0, indicating a lack of risk spreading in their portfolios. This trend is further exacerbated by a rising number of investors who only own shares in a single company, signaling a potential increase in concentration risk.
Moreover, the report sheds light on the gender disparity in investment returns, with women outperforming men in terms of portfolio performance. The average return for women’s portfolios was 5% in the previous year, compared to 4.3% for men. This data underscores the importance of diversity in investment strategies and the potential benefits of female participation in the stock market.
In terms of overall participation, over 2.3 million Swedes currently own shares in Swedish companies, indicating a widespread interest in stock ownership among the population. However, only nine companies saw an increase in the number of shareholders last year, with Saab and Investor leading the pack with significant gains. Saab, in particular, experienced a surge in new shareholders, climbing from 29th to 12th place in terms of popularity. Despite this growth, the majority of new shareholders in Saab purchased small stakes, with 65% buying between 1 and 500 shares.
On the flip side, SBB experienced a decline in ownership, losing 32,966 shareholders, the highest among all companies. This decrease in ownership highlights the volatility and changing dynamics of the stock market, where investor sentiment can shift rapidly.
Additionally, the report identifies Billerud as a popular stock among older investors, particularly those in the age groups of 71-80 years, 81-90 years, and 90 years and above. This demographic preference for Billerud reflects the company’s stability and long-term investment potential, making it a favored choice among more seasoned shareholders.
Overall, Euroclear’s report provides a comprehensive overview of the Swedish stock market landscape, highlighting both the positive trends and challenges facing investors in the country. By analyzing these insights, investors can make more informed decisions and adapt their investment strategies to navigate the ever-changing market conditions.