Tallinn 10:00-16:00
Riga 10:00-16:00
Vilnius 10:00-16:00
Moscow 09:30-17:45
Stockholm 10:00-18:20
Helsinki 10:00-18:20
2010-09-22 10:36:01
EUR/USD 0.8005
EUR/LVL 1.4134
EUR/LTL 0.2896
EUR/EEK 0.0639
EUR/SEK 0.1044
EUR/RUB 0.0265
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: xxx 0.00% / matas 0.00% / iFund 0.00% / warkes 0.00% / pirmas 0.00%
 

HEL (Helsinki) - Helsinki Stock Market Overview

Year: 2010 Week: 9
 
The 9th and the final week of the investment game went rather steady for the OMX Helsinki 25 (OMXH25) index. The OMXH25 index started the week with a value of 2,064.13 and fluctuated until Wednesday. Then it had declined until it reached the week’s minimum of 2,049.65 and started recovering immediately afterwards, closing the trading session on Friday with a value of 2,071.79 summing up to a total +0.50% change. The week was ambiguous, chemical industry issued a strike notice and job lay-offs made the adjusted unemployment rate rise up to 9.1% compared to 6.6% rate in the same period in the previous year. Moreover the finance ministry published a 75mln pre-tax loss in 2009. Nevertheless, both the Finnish consumer and manufacturing confidence indexes are rising up making people believe the economy is slowly going back on its track.
 
 
Figure 1. Performance of OMXH25 index (red) and the NASDAQ index (blue) during the month.
 
This week’s best performer is KONE Oyj (KNEBV), which is one of the global leaders in the elevator and escalator industry, which was founded in 1910 and now celebrates a 100 year anniversary. This may be the reason of the steady increase in its share value from €29.97 in the beginning of the week to €31.00 per share on Friday accounting for +4.38% growth. Realistically, one of the main factors, which caused the demand to go up and hence pumped up the price for KNEBV shares, is the announcement that the company will pay the dividends on 2010-03-11 (€1.30 per share). Another factor which may have influenced the demand is that there is going to be an annual general meeting of the shareholders on March 1st and every of them will have a right to vote for what decisions to make for the further development of the company. 
 

Figure 2. Performance of KONE shares (red) and the OMX Helsinki 25 Index (blue) during the month.

The second best performer this week is Stora Enso R (STERV), which is the world leader in forest industry sustainability which offers their customers solutions based on renewable raw materials. STERV share prices kicked off from 4.454 per share at the beginning of the trading session on Monday and gradually rose to 4.65 on Friday closing the week with a +4.12% growth. It was the first week, STERV shares outperformed  the OMXH25 index in quite a while. The reasons can be found in the company’s annual report for 2009 published on Wednesday. Although 2009 was tough, Stora’s sales amounted to 8.9 billion EURO and the key indicators were still favourable for investors.  
Figure 3. Performance of Stora Enso R shares (red) and the OMX Helsinki 25 Index (blue) during the month.
 
Taking the lead of the worst performers this week is Outotec Oyj (OTE1V), a leading global provider of process solutions, technologies and services for the mining and metallurgical industries. Starting with a value of 22.37 EURO per share OTE1V had fluctuated around that number until Wednesday, when the company’s annual report was published. The price progressively declined since then reaching the figure 21.28 at the end of the week and amounting to -5.88% change. Investors were scared away by the key-figures in the published report. The earnings per share are only one quarter of what they used to be in 2008 same thing for returns on equity and investment. The demand for the shares dropped dragging the price down with it.
 
Figure 4. Performance of Outotec Oyj shares (red) and the OMX Helsinki 25 Index (blue) during the month.
 
With a moderate decline of -5.05% Cargotec Oyj (CGCBV) became the second worst performer on OMX Helsinki 25 market during the past week. Cargotec Corporation is a Finland-based company that offers handling systems and related services for the loading and unloading of goods. The Company’s shares started the week with a price of 20.80 EURO per share, which declined gradually throughout the week. The sharpest decline of 3.22% was observed on February 25. The market closed on February 26 at a price of 19.76 EURO per share. From the technical analysis point of view this decline can be explained as a correction of a steady growth which has started in March 2009. Investors believe that an upward going trend which characterized the majority of shares in 2009 didn’t correspond to real market indicators. The correction, which started in the middle of December 2009 reached Cargotec’s shares only now.
 
 

Figure 5. Performance of Cargotec shares (red) and the OMX Helsinki 25 Index (blue) during the month.

 
 



Review by: Stasys Karbauskas, Jekaterina Kolbina, Yaroslava Obertas, Vladimirs Racejevs