Stockholm Stock Exchange Experiences Slight Decline Ahead of Christmas Holidays
The Stockholm Stock Exchange saw a slight downturn on Monday, marking the last trading day prior to the Christmas holidays and the third to last of the year-end squeeze days for the stock market. In a day filled with various activities, companies like SBB and Saab witnessed an increase, while Evolution experienced a notable decline.
At the close of the session, the OMXS30 index had fallen by 0.19 percent, resting at 2,469.87. The day’s activities saw shares worth SEK 14.3 billion traded on the Stockholm Stock Exchange. In terms of performance among the major industrial sectors, health care stood out with an increase of 0.83 percent, while consumer durables found themselves at the bottom with a decrease of 2.80 percent.
When examining the leading stocks within the OMXS30 index, SBB B shares increased by 5.8 percent, and Saab shares were up by 3.9 percent. Unfortunately, Evolution did not fare as well, experiencing a drop of 10.1 percent, while H&M shares saw a decline of 1.3 percent.
The decline in Evolution shares comes in the wake of news that the UK’s Gambling Commission (UKGC) has initiated an investigation into Evolution’s holding company in Malta. This investigation was sparked by discovery of gambling activities in the UK by operators lacking UKGC licenses. Possible outcomes of the UKGC’s review range from requiring no action to potential financial sanctions or the revocation of their license. The UK market contributes approximately three percent to Evolution’s overall revenue, causing a substantial impact as the share fell by 10.1 percent.
Real estate company SBB announced several notable updates. The company assessed that risks have significantly decreased in its ongoing litigation in the UK after a majority of bondholders withdrew from the dispute, following the bond exchange offer’s outcome. As a result, credit rating agency S&P Global improved SBB’s credit rating to CC post-exchange offer. Additionally, SBB revealed the dissolution of two more joint ventures involving properties valued at SEK 2.2 billion and the sale of building rights for SEK 194 million. The B-share saw a 5.8 percent increase.
Saab, a prominent defense company, secured an order from the Swedish Defense Materiel Administration, valued at SEK 800 million. This development is timely, as Saab is likely to gain from the anticipated rise in defense spending across numerous countries. Discussions within NATO have considered raising the spending requirement from 2 to 3 percent of GDP, with additional advocacy from leaders like Donald Trump suggesting an increase to 5 percent. Saab’s stock rose by 3.9 percent in response to these developments.
Moreover, the Swedish Inspectorate for Strategic Products (ISP) concluded its review of the takeover bid for Doro by Norwegian Xplora Technologies. ISP’s approval was crucial for the deal to proceed. Determining that Doro’s activities do not require protection under the Foreign Direct Investment Review Act, the ISP has decided to close its review and reject the notification. Consequently, the bidder shortened the offer’s notification period to January 13. As such, Doro’s share rose 2.7 percent to SEK 33.70, reflecting optimism as the offer price per share stands at SEK 34.
Elsewhere, Torsten Jansson, the CEO and principal owner of New Wave, a brand company, sold shares worth SEK 8.55 million. Jansson shared that the shares were sold to Anna Gullmarstrand, the newly recruited CFO, who will step into her role in February. The stock marginally fell by 0.3 percent following this announcement.
Additionally, technology company Dynavox saw a significant surge, climbing 10.3 percent, following a new buy recommendation from EFN Finansmagasinet. This recommendation appears to have given investors a strong sense of confidence in Dynavox’s future prospects.
Overall, the trading day reflected a mix of challenges and opportunities for various companies on the Stockholm Stock Exchange ahead of the holiday season.
