SSE (Stockholm) Market Overviews

Stockholm Stock Market Overview 05/11/2005 –09/12/2005

This week several companies have shown remarkable results on the Stockholm Stock Market. First of all, two manufacturer of trucks and buses will be investigated as two competitors with similar performance. There also will be explained the reasons which have led for such changes. And finally, the investigation of Axfood AB (AXFO) shares will be continued, since there were a gradual fall in prices all the week.

After the short period of stability the price of Volvo, AB ser. B (Volv B) shares started to grow again. On Monday the opening price was €37.27, but at the end of the week there was a slight increase by 3.7% observed. Nevertheless, the price reached the peak on Friday and the closing price was €38.65. This price, however, is not thought to be the last. It is expected to see more significant increase in price because of the following last week’s event. On 6th December, Volvo took part in the seminar where it tried to convince the EU to start using more commercial vehicles with alco-lock. What is more, the 9th of December was a very successful day due to the received order of 2000 Volvo B2R buses from China. All these events might have more influence on the price next week.

The second company which is analyzed this week is also manufacturer of trucks, buses and marine engines. Scania A, SCV A, 260(Scv A), just few weeks ago (21/11/2005) received the award from the Spanish haulage association (CETM) because it met European emissions requirements. However, since then there were no sharp changes. The price was fluctuating around €29.84. Only this week brought some noticeable changes. The price has grown up to €30.47 per share. Such a strange performance have not caused some changes in trade, while the turnover rose by €424,721, and at the end of the week stood approximately at €24 million.

The price of Axfood AB (AXFO) shares started to decrease on Monday and this process continued till the trade closing on Friday. The price has fallen from €23.36 to €22.51; in total it means 3.64%. This could be explained as the reaction to the information published on 5th of December about Axfood‘s sales in November, 2005. As this report stated, there were several unpleasant decreases during November such as decrease in net sales compared with the same period a year ago as well as decreases in sales of Hemköp, Willys and Willys hemma’s sales. All these changes led to the feasible decrease in price.

By Vitalija Bogdanoviciute,
Aleksej Jevstafjev,
Egle Saltinyte