Falling oil prices, as well as a broad decline in Asian and European stock exchange indices, led to a sharp decline in the Oslo Stock Exchange on Wednesday.
The Oslo Stock Exchange eventually fell by 2.94 percent, and the main index ended at 1,163.57 points.
During Wednesday, the price of oil was also down five percent to just over $109 a barrel.
The drop in oil prices was particularly sharp for energy companies on the Oslo Stock Exchange. Heavyweight Equinor and somewhat smaller oil and gas company Aker BP both fell about five percent. Otherwise, the heavy giants Yara and Hydro also dropped significantly.
I think there will be good numbers
Internationally, the Oslo Stock Exchange is one of the stock exchanges that has done the best, thanks to the high oil and gas prices. However, the Oslo Stock Exchange is now in negative territory for the year at just a few percent.
There are big fluctuations during the day. It’s a bit showy, says Director Leif Eriksrød at Alfred Berg, and notes that the market between profit seasons is more affected by the overall picture, and can cause greater volatility.
Eriksrød stock picker for the past 10 years has been among the top picks for stocks in Norway, and has generated an average annual return of 17 percent over the period. Result season is approaching.
– For Norway, the quarterly figures start in mid-July. Then we really think there’s going to be a lot of good numbers. Then you will get some positive movements again. The stock market is priced very low relative to earnings now because earnings growth has been so strong, at the same time that the stock market has been flat and partially in the red, he says.
– Do you think she looks attractive now?
– Yes, they are rarely priced low in relation to earnings. We think one should focus a little bit on that and.
Manager says they like oil, salmon and bank.
The price of oil is very high. The price of oil is set to drop a lot by next year. For every day the oil price does not drop significantly, earnings expectations will rise. What we’ve done is make it easier to get a lot of oil stocks. In addition, we see that the price of salmon is fantastically strong, so it is an interesting sector. We don’t really think losses will increase, so we think banking can be attractive, says Ericsrud.
Among the preferred stocks are Vår Energi and Equinor.
The collapse of the pharmaceutical companies
Mowi aquaculture, of which John Fredriksen is the largest owner, fell 7.3 percent after big owner GBL divested half of its shares. The sale was announced on Tuesday afternoon.
Pharmaceutical company Nordic Nanovector completely collapsed in Borsen on Wednesday after it announced a disappointing letter from an independent panel Tuesday afternoon. The company’s market value more than halved in a flash when the stock plunged as much as 55.4 percent on Wednesday.
After continuing delays related to the company’s new treatment for lymphoma, the board, in early June, requested an independent examination of preliminary results for the so-called Phase 2B study. The independent study concluded that the effect data were less promising than previously reported. The company will consult with relevant authorities and expects to submit a new update in August.
The cracks of the offshore company
Among the companies that fell the most was the supply company that came under pressure, Dof, with the stock down 44.1 percent. The company, which has a debt of NOK 18.7 billion, has been working for more than three years to find a long-term refinancing solution with banks, shareholders and bondholders.
Dove announced on Wednesday that the shipping company is operating reach an agreement With a large proportion of creditors and other interest groups. The agreement entails, among other things, converting NOK 5.7 billion from debt into equity – a move that would significantly weaken today’s shareholders.(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.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
After Kiwi’s move, he thinks Norges Bank could again miss out on a rate hike: – It’s starting to look disgusting for them
Hemnes, Coop Midt-Norge | Now you wake up, Coop Midt-Norge
Solar Cell, Insidious | When Rebecca was going to use the solar panels, she received the shock message