August 17, 2022

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Decline in the stock exchange: - the bull is barking, but no one thinks it will bite now, says the manager

Decline in the stock exchange: – the bull is barking, but no one thinks it will bite now, says the manager

On the last trading day of the week, the major index opened 0.16 percent lower.

Around 10.00 a.m., the main index was down 0.23 percent.

Energy-rich Oslo Boerse has finished the past three days on the negative side – marked by lower oil prices this week. However, Oslo Stocks stands out from other stock exchanges as the only stock exchange that has not been exposed to the red price this year. The increase so far this year is 3.09 percent over the previous closing price of 1,241.2 points.

This week, director at Alfred Berg Kapitalforvaltning, Kristian Tunaal, was particularly keen to follow the development in the price of oil – which is down more than 12 per cent.

– Higher oil prices kept Oslo’s stocks high in the first half of the year, so lower oil prices will have the opposite effect on Borsen, he says.

The price has remained consistently high due to the war and Western sanctions on Russian oil exports. In March, the price rose to $133 a barrel, the highest price this year.

The price of oil fell to $93 a barrel on Friday night – its lowest level in nearly six months. And on Friday morning, a barrel was trading for $94.

If it stays lower towards $90 for two or three days, many will likely see this as a sign that the price is weaker in the future and easing into oil stocks. Tonal says that would have dire consequences for Oslo Burs.

  • Oslo’s energy sector fell by nearly one percent on Friday. Equinor, the largest company on the stock exchange, fell 0.7 percent, while Aker BP fell one percent. Drilling company Awilco Drilling fell seven percent, while Stavanger-based Solstad Offshore fell six percent.
  • Flyer on Friday announced a new record month for July, with the company transporting 260,500 passengers. The stock rose 0.8 percent on the Oslo Stock Exchange on Friday.
  • On Friday morning, SAS presents its traffic numbers for the month of July. A month in which general strikes affected the company. SAS itself estimated that the strike cost the company about SEK 1.5 billion. SAS’ share was up 0.5 percent before the numbers were released.
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The dog barks

Asian stock markets don’t seem to be spooked by the Chinese drills around Taiwan. Chinese media reported, on Friday, that Chinese missiles were launched over Taiwan during military exercises on the island.

– The market seems to give spaces and takes this very quietly, says Tonall and adds:

– It can be interpreted to mean that the market does not believe that this will escalate. He says the cat is barking, but no one thinks it will bite now.

He notes that the Taiwan stock market fell sharply when Russia invaded Ukraine based on fears that China would follow suit.

This week, director at Alfred Berg Kapitalforvaltning, Kristian Tunaal, was particularly keen to follow the development in the price of oil - which is down more than 12 per cent.

This week, director at Alfred Berg Kapitalforvaltning, Kristian Tunaal, was particularly keen to follow the development in the price of oil – which is down more than 12 per cent. (Photo: Per Ståle Bugjerde)

Taiwan has made itself indispensable to the rest of the world as the world’s leading chip maker, and if this escalates, it could end up with international consequences, Tunal says.

The Taiwanese index rose more than 2 percent, among other things pulled by chip maker TSMC, which rose 3 percent. The index fell this week, as a result of tensions between the United States and China after Pelosi’s visit.

Mainland China’s Shanghai index closed 0.9 percent, while Hong Kong’s Hang Seng rose 0.2 percent. In Japan, the Nikkei index closed up 0.8 percent.

Japanese Defense Minister Nobuo Kishi said Chinese missiles fell on Japanese soil and described the military exercises as a “serious problem”.

The most important number of the month

Wall Street closed mixed on Thursday. The Tek Tek Nasdaq was the only one out of the three US stock indices that ended positive.

On Friday, the investor is awaiting the “most important key number for this month”, the US jobs numbers (US non-farm payrolls), which will be released later today.

– It would be very interesting for many reasons, especially now that the GDP of the most important economy in the world has fallen and many believe the country is in recession. On the other hand, other indicators suggest that the potential for a recession is lower, Tunal says.

DNB Markets wrote that employment growth is expected to be 250,000 jobs, with unemployment forecast unchanged from June at 3.6 per cent and hourly wage growth to 4.9 per cent from 5.1 per cent year on year.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using the links that lead 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.