– Right now I’m changed by relaxed – E24
Investors are selling off shares, and the arrows are pointing downwards on the Oslo Stock Exchange. Manager Marius Borthen warns against making hasty purchases and sales.
There are red numbers in marked around the world on Monday. On the Oslo Stock Exchange, the Main Index ends down 0.66 percent, after recovering. The index was down around 1.5 percent earlier the same day.
A barrel of North Sea oil Brent is trading at $ 70.11 in the spot market, a decline of 6.01 percent since midnight. Brent is used as a reference for global oil trade.
This is how it went with a selection of Børsen’s heavyweights:
- Equinor fell 0.25 percent
- Aker BP fell 1.22 percent
- Mowi fell 3.11 percent
- DNB down 0.34 percent
The fish farming company Bakkafrost fell around 11 percent after a report that increased mortality among fish in the company’s facilities in Scotland has cost the company 174.6 million Danish kroner (239.8 million Norwegian kroner) in October and November. The mortality is due to problems in the gills of the fish, which were amplified by a type of tiny jellyfish in the facilities.
On the other hand, the share in Bergen Carbon Solutions rose 9.08 percent after the company announced that it had had stable production on its «Diegel 2.0» unit for about a week. The company also announced that it will update its guidance tomorrow, Tuesday.
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– Those who sell, do it before Christmas
Manager Marius Borthen in Blueberry Capital is not stressed by stock market declines in the Christmas season.
– Right now I have changed from relaxed, says Borthen.
– I do not think people should get so hung up on how the market goes on a daily basis. Then you just make a lot of hasty purchases and sales, says Borthen.
– Should the market continue down at Christmas?
– The time until the first trading day in January tends to be good. I think those who sell do so before Christmas. During Christmas in space, there are mostly just buyers in the market, and then it tends to increase.
Borthen believes that managers and investors want a Christmas holiday, and that the seller before the new year to clean up the portfolio overview.
– They must announce what positions they have as of 31 December, and if they then sit in acid positions, they often want to get rid of this before the turn of the year. You often want to start with blank sheets in the new year.
Private investors also want to sell before the new year because they want to get a tax deduction for a current year even though this effect is somewhat less after getting a share savings account (ASK).
The Copenhagen Stock Exchange down over 5 percent
European stock markets are falling sharply. The Copenhagen Stock Exchange in particular points out, with a decline of more than 5 percent towards the end of the trading day.
The stock market is pulled down by the Danish pharmaceutical giant Novo Nordisk, which falls 11.78 percent behind delays in the drug Wegovy. The company will not be able to meet the demand for the drug, which will help the obese, writes Reuters. The Danish wind power giant Vestas is also down to 2.75 percent.
Asian stock markets have fallen sharply on the morning twig. In the United States, the three leading indices are also down more than one percent in early trading.
Biden with budget smell
The development comes according to Bloomberg among other things, after concerns about new downshifts due to increased omicron infection. In practice, the Netherlands runs a full “lock down” from Sunday, which lasts until and including 14 January at the earliest. The UK has also had an increase in corona infection recently.
Borthen in Blueberry Capital explains today’s stock market decline with Biden’s defeat for its “Build Back Better” package.
US Democratic Senator Joe Manchin says he will vote against President Joe Biden’s $ 2,000 billion crisis package. It represents a defeat for the president. Goldman Sachs has subsequently reduced its growth forecasts in the United States.
The senator issues a statement on his Homepage, where he explains that Biden’s prestige project is too expensive. CNN reports that this should have made Biden furious.
– It is to be regarded as a bit of noise for the shares we have. There are no great things beyond this that have happened.
The most interesting thing now is that the ten-year interest rate on US government bonds has fallen so much, Borthen believes. Blueberry Capital’s largest position is the real estate stock Entra, which earns on lower rents.
Christmas effect
Low trading volumes associated with Christmas may amplify fluctuations in marked.
– It is often a little worse liquidity in the market to get closer to Christmas, and you are often afraid to take the risk towards the end of the year to potentially ruin what for most has been a good year, says senior strategist Joachim Bernhardsen in Nordea Markets.
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