Global unrest caused a sharp fall on the Oslo Stock Exchange – E24
Turbulence in the financial markets sent the Main Index sharply in the red. At the same time, several salmon companies did well after Mowi announced that it would buy NTS for NOK 13.8 billion.
The decline on the Stock Exchange accelerated beyond Monday. The main index ends with a decline of 3.45 percent.
At the same time, the other European and Nordic stock exchanges are falling sharply. The Helsinki Stock Exchange is down over 4 percent, and both the Stockholm and Copenhagen Stocks are down over 3.5 percent. At the same time, the Dax index in Frankfurt is down around 3.5 percent, and the sharp fall in London and Paris.
Thus, the unrest continues from before the weekend when technology-heavy Nasdaq, among other things, had its worst week since October 2020.
– The Oslo Stock Exchange is not disconnected, there is a high correlation with the rest of the market. The stock market is dragged along in the pull regardless, says Olav Chen, head of allocation and global tenant in Storebrand Asset Management.
– At the same time, it is important to remember that the global stock markets have given a yield on figures for three years in a row. That is not normal, he adds
General risk fears characterize the markets
Concerns related to future new interest rates have created unrest in marked since years. Although interest rates continue to be marked, they have in recent days shifted to a more general fear of risk, says Erik Bruce, chief strategist at Nordea Wealth Management.
– It is self-reinforcing when the market falls. Many are afraid that we are in a sharp correction and the seller therefore says out, says Bruce to E24.
– It is often the case that if you think that this has started on something worse, then you are selling out, he adds.
The world’s stock markets are now waiting for Wednesday’s rental meeting at the US Federal Reserve.
The US Federal Reserve signaled in December that interest rates would be raised, and that it would start in March. In that case, it will be the first interest rate change after the crisis cuts in the spring of 2020. The broad expectations are that there will be four interest rate hikes from the Federal Reserve in 2022.
Falling oil prices
The price of oil has also fallen somewhat, and the decline has intensified on Monday afternoon. A fat North Sea oil (burnt spot) costs 86.28 dollars just after the Oslo Stock Exchange closed.
Oil giant Equinor was still among the big companies that did best on a heavy stock market day. The stock was up many of the days, ending with a slight decline of 0.06 percent as the most traded.
Aker BP (down 3.78 percent), Hydro (down 4.29 percent) and Nordic Semiconductor (6.69 percent) were the second on the list of most traded, and helped pull the Stock Exchange down.
Autostore also fell on Monday after the robot storage company earlier in the day fell to search for Monday. The stock ended up falling 5.43 percent,
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Ukraine conflict may affect marked
Erik Bruce also believes that the increased geopolitical tension between the United States and Russia, due to conflicts between Russia and Ukraine, may have a marked negative effect.
– But, the last time Russia invaded Ukraine, it was a bit of an outcome on the stock market, he adds.
The U.S. State Department on Sunday recommended that all U.S. citizens in Ukraine should leave the country immediately, citing Russia’s military build-up at the border, according to CNBC.
The Moscow stock market fell 9 percent on Monday afternoon, and has reached near 20 percent so far this year.
Salmon jump
Here at home, the power struggle in NTS continued to make headlines. During the weekend, it became known that the shareholder group wants an extraordinary general meeting to make changes to the board.
Monday morning, the case took a whole new turn when Mowi announced that it will bid on NTS. Mowi will pay DKK 110 per share, which gives a total valuation of DKK 13.8 billion for the entire NTS.
The NTS share rose 10.50 percent to NOK 121. At the same time, the Mowi share ended down 2.57 percent.
Earlier this month, NTS and Norway Royal Salmon (NRS) entered into a transaction contract with a view to merging the latter with NTS ‘wholly owned fish farming company Salmonor. This has led to major repercussions in the NRS share as the conflict in NTS has unfolded.
Following the Mowi bid, the NRS stock rose 5.92 percent on Monday.
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