HEX (Helsinki) Market Overviews

Helsinki 25 index has decreased by 4.16% over the week and was 3 005.76 at 6:00 PM, Friday the 23rd. Only 3 companies – Fortum (FUM1V), Wartsila (WRTBV) and Kesko(KESAV) - had an increase in their stock’s value but it was very small (0.49%-2.79%), whereas the decreases among other 22 companies’ stocks ranged from -1.35% down to -12.5%.

In OMXH25 index increases in stock price are not significant, nevertheless the week’s biggest winner is Fortum (FUM1V). Fortum is a leading energy company that works in the Nordic and Baltic regions, in electricity and heating supply field. Its stock performed well, having an increase of 2.79% over the week and because of the good performance in January - September period the change since mid-September is 25.5%. Looking at the bigger picture, this company’s stocks tend to increase in January and February as the heating season usually improves financial performance of Fortum, being a heating company.

Another winner this week was Marimekko Oyj (MMO1V) (not included in H25). It’s value increased by 2.88% from 17.4 EUR on Monday to 18.5 EUR (closing price on Friday). This company also published a promising interim report on October the 31st, causing the stock to go up by 24.5% up to now. This could be a good opportunity for long-term investors.

The biggest loser of the week is Konecranes PLC (KCR1V). The opening price on Monday was 28.83 EUR per piece and in the last deal these stocks were traded at 25.24 EUR which is a decrease of 12.5%. That can be explained by the release of new stocks that was too big for the actual demand on 7th of November because since then the stock’s value has decreased by approximately 7 EUR.

YIT Oyj (YTY1V) is a diversified company which provides a range of services (mainly construction and maintenance) to other businesses. This stock has been experiencing a downward trend since May and reached the lowest value in two years of 15.52 EUR this Thursday. Also it is one of the biggest losers of OMXH25 this week, having lost 11.44% of value. The company tried to stabilize the situation by selling their Network Services business unit, which resulted in a slight increase of 2.32% on Friday. It is hard to say what the long-term result of this transaction might be, but short-term investors may win from this risky investment.

Another big loser in the OMXH25 was Stora Enso R (STERV) with a 9.32% decrease this week. It has been losing value throughout November, which was mainly the result of weak third quarter results and pessimistic future forecasts. Stora Enso R is a forestry products company, so higher wood costs together with weak a US dollar made the biggest negative impact on the earnings of the company. The company will continue to reduce their production during the fourth quarter, so the value will most probably continue decreasing in the long-run, despite a 3.06% increase in Friday.

The overall biggest loser in the Helsinki stock exchange this week was Finnair (FIA1S). They lost 20.61% which could be explained by a decision to undertake a share offering of EUR 248.5 million at a subscription price of EUR 6.30 per share, which was made during the extraordinary shareholders’ meeting on the 21st November. This should result in a further rapid decrease in stock price during the next couple of weeks.

By Miks Mikelsons

Jonas Masaitis