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Indices: / OMXR 0.00% / OMXV 0.00% / OMXT 0.00% / OMXS30 0.00% / OMXH25 0.00% / MICEX 0.00% Stocks: VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% / VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% Porfolios: StraterS 0.00% / koncik 0.00% / Laime 0.00% / Life 0.00% / RIX 0.00%
Stockholm Stock Market Overview (OMX) 12/03/2007 – 16/03/2007
This week was far more active than the previous one. The majority of companies had their share prices fluctuating during whole week and unfortunately for them as well as for investors they closed the week up with lower share prices. The instability on the Stockholm Stock Market could be seen from its main indexes OMX Stockholm 30 (OMXS30), which went down by 1.84%, and OMX Stockholm Benchmark (OMXSB), decreasing by 2.02%. Turnover during week 11 was €2.74 billion. This time we will analyze 3 companies, whose events might have a long-term effect on their share prices, namely AstraZeneca (AZN), Electrolux B (ELUX B), Ericsson B (ERIC B).
Shocking news came from the USA on week 11 connected with drugs, produced by AstraZeneca (AZN), usage by teens. They were increasingly given a class of anti-psychotic drugs not yet cleared by the U.S. Food and Drug Administration. Specialists claim that this off-label drug usage and prescription is the first reason why European analysts expect AstraZeneca sales reach .75 billion by 2010. Nevertheless this promising information about company’s successive performance, the current accident in the USA caused negative rumors among consumers. Setting off these two opposite arguments made AstraZeneca’s share price fluctuated during week 11 and closed up at €41.89. However, the negative accident involving the company might have a long-term effect on its share price level.
Electrolux B (ELUX B), the world’s second-biggest white goods maker, stuck to the new target for somewhat higher sales and a slightly higher pace of organic growth of 4%. The firm aims for cost cuts of 3.2 million by 2010 and which is in the middle of restructuring process costing €860,000. In addition to this, the Malaysian newspaper reported Electrolux’s B Asia department is expecting double-digit sales in Asia this year, due to stabile economy and increasing demand for appliances in the region. This should be appreciated by the company’s investors, which actually showed up in +1.83% to the closing share price this week. Moreover, since these goals of Electrolux B are for the long future, they should also have positive effect on its share price.
During this week Ericsson B (ERIC B) met with the success too. Its share price changed by 2.85% during week 11 and closed at the level of €2.64. Such a relative increase could be explained by the latest news from the company, which decided to acquire new assets in strategically important spheres. On Thursday (15/03/07) Ericsson B announced that it’ll buy IP Messaging Company, which will help Ericsson B speed up the development of new messaging offerings. And already on the next day CEO said that it had purchased shares representing 87.4% of Tandberg Television. So active policy of expansion of the company might be in investor’s interests and have a future impact on increasing share prices. As the above listed events happened at the end of the week, share price did not manage to react on them; therefore, it’s more likely that it’ll be positively affected in the early beginning of the next week.
By Dmitro Golubnichy
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