The main index on the Oslo Stock Exchange fell 1.85 percent on the last trading day of the week, after a turbulent week across all global stock markets.
The clear winner on the Oslo Stock Exchange on Friday was small insurer Insr, which rose 68.7 percent after Finanstilsynet agreed to re-license the company’s insurance.
The approval takes effect after Insr amends the company’s articles of association to reflect that it is no longer an insurance company, and that Finanstilsynet has received the necessary confirmations and fees.
After the price increase, Insr’s market capitalization is NOK 60.7 million.
The second best Canadian-based oil and gas company was Questerre Energy Corporation, which rose 7.5 percent. The energy company, which is listed on the Toronto Stock Exchange and the Oslo Stock Exchange, has had a great start to the year and is up more than 50 percent in the past three weeks.
At the other end of the scale, blockchain company DLT is down 13.9 percent and robotics company Autostor is down 12.0 percent.
Ukraine’s situation affects the market
Corona situation, inflation, interest rate hikes, supply chain disruptions, data chip shortages, geopolitical conflicts, trade wars and energy price hikes are all causing market uncertainty.
Normally, the stock exchange doesn’t care much about international politics. It will be a long time before that affects the market, but it is the same in Ukraine and Russia, says director Christian Tonal at Alfred Berg Capitalforvalting.
He points out that because Ukraine is so close, and Russia is an important oil and gas exporter, it has a greater impact on the market here at home.
Oil and gas prices are also so high that they raise the problem, says Tunal.
North Sea Brent spot oil, which is used as a reference price for oil trading around the world, is trading at high levels. At the close of trading on Friday afternoon, the price of oil reached $86.96 a barrel.
– The fact that the price of oil is so strong attracts investors to the Oslo Stock Exchange, so we will see how the stock market day develops, says Tunal.
Equinor, the day’s most heavily traded stock, fell 2.0 percent on Friday and closed at NOK 247.15. It is above the price target of investment bank Goldman Sachs, which was recently raised from 210 to 230 crowns per share, Reuters wrote on Friday.
normalization
It is now soon time for fourth-quarter reporting season, and Tunal notes that there is some uncertainty associated with what companies will achieve.
The third quarter was very good, we can expect a good fourth quarter, but it could be a bit nervous now. Personally, I think the reporting season will be reasonably good. It’s rare for it to spin so fast, Tonal says.
He believes that the market has gone through a period of very high optimism and many overpriced companies.
– Then there will be a little decline, even if the world is a quiet place.
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He points to Netflix, which on Thursday provided numbers for the fourth quarter. Netflix generated $30 billion in revenue last year, a $5 billion increase from 2020. Profit before tax ended up at $5.8 billion, a sharp increase from $3.2 billion a year earlier.
Despite the increase in subscribers, the stock fell in aftermarket trading on Wall Street and Down 23 percent from the beginning of Friday.
Netflix came in with usable numbers yesterday, but it still fell several percent. This could be a good sign. Tonal says that prices for tech companies have been too high for a long time, so it’s time to normalize.
He believes that the prices of companies on the Oslo Stock Exchange and other northern markets are reasonable.
You get paid reasonably well for the risk you take, but the corporate rates are very different. It’s not hard to find affordable companies, but there are some companies that have garnered quite a bit of attention for some time that have been overrated.
It highlights Hydro and the big Nordic banks as affordable companies.
Equinor is also not very expensive given the current oil price.
Stock market turmoil around the world
Ahead of the stock market open, a drop was expected in Borsen, after the broad stock market plunge on Wall Street on Thursday. Asian stock markets also saw a notable decline on Friday.
“It’s been completely red in Borsen so far this year, and today there will be a drop in the stock market,” Tonal told DN ahead of Borsen’s opening Friday.
In the pre-trading period, the Oslo Stock Exchange fell 1.59 percent, he said.
After the volatility on Wall Street yesterday, and the pullback in Asia, it’s going to be a red day in the stock market here at home, Tunal predicted and was right.
The three major indices started higher on Thursday after two days of trading with dips, but throughout the day, and especially in the last hour before stock exchanges closed Thursday night, things continued to slow. All three major indices ended lower, and the overall S&P 500 index fell more than one percent.
Stock markets have fluctuated a lot since the beginning of the year. The tech-heavy Nasdaq has fallen more than 10 percent since its peak in November.
Technology firms on the Nasdaq have been hit particularly hard by rising US government bond yields. The ten-year-old American player has an infection rate of about 1.83 percent. It was just 1.9 percent through Wednesday.
decline in asia
Know the Nikkei The Tokyo Stock Exchange started a decline of more than 2.2 percent During the first trading hour on Friday morning. This came a few hours after Wall Street closed for normal trading and the major indices in the US showed a broad decline.
The Nikkei was at its highest level since the early 1990s last fall. In just over four months, the main index is down 11.5 percent and is in a correction. The broader Topix index is also down more than 10 percent from September.
While the US and Europe struggle with high inflation, and this is seen as a threat to economies, Japan has been trying to create inflation for more than 20 years.
The December numbers came out on Friday morning. This showed an increase in Consumer price inflation was 0.8 percent – 0.2 percentage points higher than in November. Capital Economics wrote in a report that inflation in Japan will peak at 1.0 per cent in the coming months.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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