The main index on the Oslo Stock Exchange has been cautiously lower since the start on Wednesday morning, but after just over half an hour of trading, it turned into a 0.3 percent increase.
At 13.15, the main index rose to 0.14 percent.
Recently, a number of companies presented third-quarter results.
– It was solid. In the past four weeks, the annual estimate for 2021 has risen by 5.7 percent for Norwegian companies. This shows that both companies performed well in the third quarter, and sent good messages for the fourth, says Nordea’s chief investment officer Robert Ness.
When Ness summarizes earnings estimates for next year, he finds that analysts expect a 16 percent profit increase for the Oslo Stock Exchange for 2022 compared to 2021.
– That’s double expectations in international markets, says Ness.
He points out that several stock market heavyweights have positively contributed to the upward adjustment of earnings estimates in Norway, including Equinor, Yara, Hydro and Aker BP.
Performance Enhancement from Grieg Seafood
Information technology company Link Mobility also presented the results Wednesday morning. The numbers appear solid Increased turnover. Profit before tax ended at minus NOK 46 million, an improvement from NOK minus 63 million in the same period last year.
On Wednesday morning, the company plunged about 17 percent on the stock exchange. The stock is now trading at around NOK 23.75, and has fallen more than 60 percent since its initial price peak of NOK 60.4 in mid-February this year.
Grieg Seafood stock rose 5.25 percent, the third most heavily traded stock so far. Multiconsult goes the other way and is down 14.17%.
– Grieg Seafood Company came in good numbers for the third quarter with operating profit of 149 million. It was well above the consensus, which was 98 million, according to Bloomberg, so it might signal a good start. On the other hand, they lowered production guidance for 2021 by 3,000 tons. That means, though, the third-quarter broken estimates will be more moderate adjustments for the full year and next, says Ness.
Other than that, it was announced Wednesday morning that Carbon Transition’s technical director, Ronny Boone, had resigned. The Board will consider alternatives as an alternative. Carbon Transition is listed on Euronext Expand.
North Sea spot Brent, used as a reference price for oil trading worldwide, is trading at $83.82 a barrel on Wednesday morning, slightly down from Tuesday’s levels.
New records on Wall Street
Wall Street ended Tuesday with Wide rise and record fourth in a row. Car rental company Avis was the surprise winner today.
The Dow has now risen for nine consecutive days. The rally comes after a rush of results from some US companies, and the world’s largest. So far, most of them are on the S&P 500 Index Beat expectations in advance.
In the US, this is another busy week for earnings. In general, the companies achieved good results and the estimates for 2021 and 2022 came out. What is different in recent years is that the IT giants Amazon and Meta, formerly Facebook, gave disappointing signals that the earnings estimates for both 2021 and 2022 fell for both companies. Ness says oil companies and banks are responsible for the most positive surprises in terms of profits.
On the same day, the US Federal Reserve began its two-day monetary policy meeting. In spite of Economists believe there is still a long way to go Until interest rates rise in the US, there is a clear expectation that the support for buying securities is nearing completion.
The Fed buys $120 billion in securities each month, called quantitative easing, to stimulate the economy and keep interest rates low.
US interest rates aren’t expected to rise tonight, but the wording could be important. US long-term interest rates have risen well since the end of July, from 0.7 percent to 1.2 percent for five-year government rates. Most investors will probably be somewhat surprised by central banks’ confidence that high inflation numbers are temporary, says Ness.
Mixed development in Asia
South Korean internet company Kakao separated financial and payment services into a separate company and completed the listing on Wednesday. The stock price doubled during the first trading hours.
This did not spread to the rest of the Seoul Stock Exchange, which is the current loser in Asia with a 1.4 percent drop. Parent Company Kakao Corp. by 2.4 percent.
In the rest of Asia, there is a mixed development in the stock exchanges. Investors are waiting for clues from the US Federal Reserve’s interest rate meeting.
Longi Green Energy Technology on the Shanghai Stock Exchange is the current loser with a price drop of 6.7 percent.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We want 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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