Overnight, most of the stock market indices in Asia rose significantly, with China’s Hang Seng index leading with an increase of less than six percent.
This happened in parallel with a somewhat weak dollar, and a 1.2 percent rise in the price of oil.
At 11:00 am, Oslo’s main index, Poors, was up 1.2 percent.
Among other things, Kongsberg Group rose 2.6 percent after it became known on Monday evening that the company had concluded a framework contract worth up to 15 billion Norwegian kroner with the US military.
Storage company Autostore, which has long been a favorite of small shareholders, is also up about 12 percent, for reasons unknown. It also means that the company’s share price has doubled since the end of September. So far this year, the stock price is down 37 percent.
Meanwhile, Aker Biomarine is down more than nine percent after a quarterly report Tuesday morning showing earnings shrank in the previous quarter.
Meanwhile, agricultural companies are faltering, after a sharp rally on Monday.
That’s when the Oslo Bors Seafood Index, which reflects the development of the most heavily traded seafood stocks in the Oslo Bors, rose just under five percent.
Agricultural company Salmar led the rise with a price development of 7.1 percent, and the company also topped Nordnet’s recent public offering of Oslo Stocks’ most-purchased stocks in October.
In total, Salmar shares were bought net for 169 million NOK in October, while the total price has fallen by just over four percent in the period. Mowi and Lerøy Seafood Group are also high on the list, with net purchases of shares of the two companies for NOK 81.5 and NOK 47 million respectively through Nordnet.
“Obviously” interpreted positively
Salmar and the agricultural sector in general suffered from winds in their sails after that Right-wing leader Erna Solberg wears DN Weekend He criticized the government’s proposal to start from a standard stock exchange rate rather than the real contract price as the tax base for the new land lease tax.
Most agricultural stocks, including Salmar, tumbled again in September when the government released a much-discussed land rent tax proposal as a bombshell to the industry.
Analysts expect a decline in corporate profits between 15 and 30 percent as a result of the new tax. The worst would be for Salmar, which has the largest share of production in Norway, Nordnet writes.
– There have been various messages from the government in recent days that they are open to negotiation and lowering this tax, which may indicate that the 40 percent land rent tax will not become a reality, the online broker writes.
Nordent adds that the market interpreted this “obviously” favorably.
But Salmar’s stock fell on Tuesday morning by about 3.8 percent. This is after it became clear on Monday after the stock exchange closed that the European Union had agreed to the company’s purchase of NTS shares, which also means that the merger of Salmar and Norway Royal Salmon will take place.
The latter’s share price rose more than 17 percent on Tuesday morning.
Profit protection in industrial companies
In Nordnet’s October overview, industrial groups Yara and Norsk Hydro are the two companies with the most net sales.
Although Norsk Hydro came in with good numbers, the future prospects are unfortunately poor. Weak economic growth has already reduced demand for aluminum, which is very negative for Norsk Hydro, writes Mads Svendsvik Johansen, Nordnet investment economist.
The company’s share price rose more than 13 percent in October, and NordNet net sales of NOK 48.6 million were sold.
At the same time, Yara’s share price is up more than twenty percent, spurred in particular by a quarterly report that showed a significant increase in income. Thus, a large net sale may indicate that some investors have taken profits.
New month new opportunities
After an overall rise of 6.6 percent in the Oslo Stocks in October, November will start with more growth.
The stockbroker Pareto Securities takes three new shares in its monthly portfolio in relation to the month’s cycle, while simultaneously withdrawing four.
The companies acquired are Cool Company, NorAm Drilling and Norske Skog, while Bonheur, Orkla, Stolt-Nielsen and Sparebanken Vest have been excluded.
At the same time, Aker BP, Austevoll, Gjensidige, Hafnia, Kongsberggruppen and Mowi make up the remaining shares, which will be held in the portfolio from October.
Pareto’s monthly portfolio posted an overall increase of 7.0 percent in October, and is also up 23.8 so far this year, the company wrote. By comparison, Oslo’s main stock index is down 2.2 percent so far this year.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using 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.
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