SSE (Stockholm) Market Overviews

22/10/2007 - 26/10/2007

The OMX Stockholm 30 Index (OMXS30) sank 0.2% in Stockholm even as 17 members dropped and 11 advanced during this week. The major winners were Alfa Laval AB (ALFA), ABB Ltd. (ABB) and TeliaSonera AB (TLSN). Biggest losers were Electrolux AB (ELUX B), SEB (SEB A) and Swedbank AB (SWED A).

TeliaSonera AB (TLSN), the Nordic region's second-biggest phone company, had a steep increase of 4.48% in the share price. TeliaSonera closed at €6.71, bringing the increase to 19% this year. The stock is up 24% since Nyberg's appointment as CEO last month. This jump was highest in three years. According to the company, third-quarter net income climbed to 589 million euros, topping the estimates of analysts. Growth was driven by sales in Turkey, Russia, Kazakhstan and Uzbekistan. On 26th of October TeliaSonera unleashed its plans to pay a special dividend of 1 billion euros for 2007. In addition, Lars Nyberg presented five areas that he will focus on in the next two years. Those include exploring growth opportunities in Eurasia, intensifying efficiency improvements, and looking for new business-to-business possibilities. This can cause an even more significant impact on the share price in the near future.

Alfa Laval (ALFA) share price tremendously increased by 17.12% during the week with closing price of €55.16. This rise was caused by strong quarterly report introduced on Tuesday (23th, Oct). The same day Alfa Laval had a record gain of 15% in Stockholm exchange market. Also in the last week company made a contract for three years with two major US engine makers in using Alfdex technology. Alfa Laval share price were growing quite rapidly all over the year and they are expected to keep increasing, since there still some potential markets awaiting (e.g. when Europe introduce new legislation related with ecology) and their new technologies are required more and more in a lot of different business areas.

Electrolux B (ELUX B) share price at the beginning of the week levelled off after decrease during the previous week, but later it went down and at the end of the week a fall of 9.29% was recorded with a closing price of €13.16. This happened after the company posted information about lower quarter earnings than expected. Moreover, Electrolux had a lower income in Europe than in a previous quarter and their real costs exceeded the expected ones. The company might continue to show not as good results as other firms of the same sector and this might affect the price of Electrolux shares.