Investors pushed Oslo Poor’s up almost 1 percent – Rec Silicon rose sharply after an agreement with the largest shareholder

Investors pushed Oslo Poor’s up almost 1 percent – Rec Silicon rose sharply after an agreement with the largest shareholder

The main index on the Oslo Stock Exchange rose 0.95 percent on Wednesday, after Flat development on tuesday.

The main index is now up about half a percent so far this year. On Wednesday, the price of oil was around $85.0, about 0.6 percent lower than it was at the beginning of the year.

Silicon producer Rec Silicon rose more than 25 percent after announcing an agreement with the largest owner of Hanwha Solutions on Tuesday night.

For its part, supplies shipping company Dof fell 11 percent before lunchtime after the company warned Tuesday noon that it might declare bankruptcy. If the company does not obtain sufficient support from the shareholders by Wednesday morning.

Just before 12 a.m., the stock was paused pending a message from the company.

Ten year agreement

The agreement with Rec Silicon means that Hanwha has committed to purchasing all polysilicon produced at Rec Silicon’s Moses Lake facility for the next 10 years. Rec will also receive an advance payment “in line with industry standards” from Hanwha.

According to a press release, the value of the agreement over ten years, based on market prices for polysilicon, is about $3 billion.

Gard Aarvik, an analyst at Pareto Securities, sums it up like this:

Overall, this announcement provides more clarity and security about future production and earnings potential and should be positive for the stock.

In a recent analysis, he wrote that although the agreement was expected, it was very important to ensure that the Moses Lake plant restarted according to schedule.

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– It’s positive to see it being formalized, and that should be good news for refinancing the bond loan due in April.

again and again for Flyr

Tuesday was also the last trading day for the Flyr exchange, which announced on Tuesday evening that it had decided to file a bankruptcy petition with the Oslo District Court.

As a result of the petition, all ticket sales were stopped and all flights cancelled. Flyer stated that the company will provide more information about the bankruptcy process when an official is appointed.

Before trading began, Oslo Poor’s also announced that all trading in Flyr stock had been halted, as a result of the bankruptcy petition. Thus the last closing price was 0.2 øre, which cost Flyr til magre NOK 51.3 million.

– This is a sad day. we tried. We gave all our energy, knowledge and experience, but unfortunately it wasn’t enough, said Chairman Eric J. Brathen, who founded the company in the midst of the pandemic.

Interest rate announcement from the Fed

On Wednesday evening Norwegian time, the US central bank, the Federal Reserve, presents its first interest rate decision of the year.

There, central bank chief Jerome Powell is expected to deliver an interest rate increase of 0.25 percentage point, a reversal from the insane pace throughout last year. In 2022, there were a total of four increases of 0.75 percentage points, and the year ended with an increase of 0.5 percentage points, so that the US key interest rate before tonight’s decision is in the range of 4.25 to 4.5 percent.

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There will be no new expectations from the Interest Rate Committee at Wednesday’s meeting, but the market will no doubt pay close attention to what Powell thinks about future developments. Last weekend it showed Inflation figures indicate that price growth slowed further in December.

A measure of personal consumption expenditures, the Fed’s preferred measure of inflation, showed annual growth of five percent in the last month of last year, compared with annual growth of 5.5 percent in November.

From the Fed’s latest “point chart,” it also emerged that interest rate committee members expect interest rates to peak at 5.1 percent at the end of next year, an estimate that’s been raised somewhat from 4.6 percent in September. Members also do not expect any rate cuts until 2024.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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