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Indices: / OMXR 0.00% / OMXV 0.00% / OMXT 0.00% / OMXS30 0.00% / OMXH25 0.00% / RTS 0.00% Stocks: SKF-B 0.00% / CHMFS 0.00% / SSAB-A 0.00% / LKOHS 0.00% / OUT1V 0.00% / SKF-B 0.00% / CHMFS 0.00% / SSAB-A 0.00% / LKOHS 0.00% / OUT1V 0.00% Porfolios: WeeklyWinner 5.74% / Lakers 4.80% / portfeliss2 4.76% / CapasXP3 4.71% / Arturcikas 01 4.58%
HEL (Helsinki) - Helsinki Stock Market OverviewYear: 2010 Week: 4This week OMX Helsinki 25
Index (OMXH25) opened with a value of 2057 points and, while Monday
contradicted the last week’s negative market growth by a small increase,
the declining trend forced it’s way back on Tuesday. Wall Street and
the global banking industry were thrown into a maelstrom by Mr. Obama’s
proposition of the most far-fetched overhaul of Wall Street since the
1930s reports Financial Times. OMXH25 has no choice but to follow the
falling NASDAQ index. As a result the week ended with the closing value
of 2035 points and an overall decline of -1.29%.
Figure 1: Price Index
OMXH25 (red) and NASDAQ (blue) (http://markets.ft.com)
The top performer this week
was Stockmann A (STCAS) with a price of €25 per share. It has
increased by 10.13% this week, which was absolutely enough to be the
best short-term investment this week. The main reason it has increased
by more than 1/10 of its value was that HTT Holding company has purchased
a huge amount of Stockmann’s shares and increased its percentage of
the voting rights up to 10.55%. As a matter of fact, that last week
Stockmann has released their annual summary which was not as bad as
it could be, there is a high possibility that the price of its value
will remain at the current level or even will go up. The second best performer of
the week is Wärtsilä Oyj Abp (WRT1V)
a company, which focuses on the marine and energy markets with products
and solutions as well as services. Over the month WRT1V
price was slowly, yet steadily heading up following NASDAQ overall trend.
However, possibly due to company’s good performance in December and
the illusion of an overall rise in shares’ prices on Monday investors
were a bit too optimistic, which resulted in WRT1V price rising
a bit too much. Nevertheless, the company’s claim to reduce its manufacturing
capacity on Tuesday and the world trend took their toll on the share
price, forcing it to decline. Still, the week ended with a 9.18% increase
for WRT1V, but with no hope of such jump next week, when the
fall is expected to continue.
Figure 2: Price Index
WRT1V (red) and NASDAQ (blue) (http://markets.ft.com)
The company Stora Enso R
(STERV) was again the main faller of this week. It
is an integrated paper, packaging and forest products company, producing
all sorts of paper for different purposes. The monthly chart for development
of the share price shows that the price was growing steadily starting
on the 28th of December with 4.87 Euro per share, reaching
the peak of 5.32 Euro per share on the 8th of January. But
later on it was not so successful and the price has been constantly
falling, reaching the minimum of the month of 4.478 Euro on 22nd of January. Besides the fact that the overall situation in the industry
is taking turn for the worse, Stora Enso has its own problems now. It
will record non-recurring items (NRI) with a negative impact of approximately
EUR 42 million on operating profit. Also, the impact of these NRIs will
be the negative earnings per share in the amount of 0.04 Euro. One of
the NRIs is the penalty in the amount of 30 million Euros imposed by
the Finnish Market Court for the collaboration with other firms in the
industry and exchanging information concerning prices of purchasing
raw materials. Taking into account the recent news about the firm and
the industry, we doubt that shareholders will increase investment in
these shares and probably the price will fall even more.
Figure 3: Stock price of Stora Enso (red) and OMX
During Week
3 of 2010 a company Outotec (OTE1V)has
gone down by 8.79% becoming a second worst performer on Helsinki market.
The company started this week with a price of 26.56 Euros per share
and closed it at 24.07 Euros per share. Outotec is primarily engaged
in the development and supply of technology for the mineral processing
and metallurgical industries. Throughout the year the price per share
of the company was constantly fluctuating by +/- 2Euros, but overall
the trend was growing. The last increase started in the middle
of December, 2009, and the price reached its peak on January 13, 2010.
If we use technical analysis as the basis for our predictions, we can
assume that the current drop is just another one, and that the price
will reach its bottom in mid-February and will start growing again.
From the perspective of fundamental analysis, several major events occurred
this week. First of all, in November 2009 Outotec acquired an industrial
company Larox, which operated with significant losses in 2009. From
January 22nd more than 90% of all Larox shares and
votes tendered to Outotec. Ownership of this company doesn’t seem
to be profitable. Moreover, Outotec repeats overall world and
industrial descending tendency.
Figure 4: Performance of Outotec shares (red) and OMX
Review by: Yaroslava Obertas, Jekaterina Kolbina, Stasys Karbauskas, Vladimirs Račejevs, Julius Juodinis |
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