The Stockholm Stock Exchange opened the final trading day of the week higher. The earnings season has gradually got under way, with Atrium Ljungberg and Öresund among the companies reporting today.
Swedish economic activity showed stronger growth in August. The GDP indicator rose 3.5 percent year-over-year, compared with 2.7 percent the previous month. Industrial production increased 5.8 percent, following a 0.2 percent rise in July. Industrial orders also strengthened, rising 5.1 percent compared with a decline of 0.5 percent the previous month.
At around 9:20 a.m., the OMXS30 index was up 1.33 percent at 3,245.07. Shares worth approximately SEK 1.6 billion were traded on the Stockholm Stock Exchange.
Among the exchange’s larger industrial sectors, technology performed best, rising 2.09 percent. At the other end of the scale, energy was the weakest sector, down 0.35 percent.
Among the leading shares included in the OMXS30 index, Hexagon B rose 2.7 percent, while Assa Abloy B was up 2.5 percent. Telia was the weakest performer, down 2.1 percent, while Tele 2 B fell 1.4 percent.
Gaming entertainment company MTG has decided to postpone the potential listing of PlaySimple, citing prevailing conditions in the Indian capital market. MTG intends to reconsider the timing of a possible listing in 2027. The company remains convinced that a listing could create significant shareholder value and strategic opportunities. MTG plunged 13.6 percent.
Among the earnings reports, property company Atrium Ljungberg reported property management income for the third quarter below expectations. Rental income and net operating income were also slightly below consensus. EPRA NAV amounted to SEK 54 per share (55.21). The share fell 2.7 percent.
Mining company Lundin Gold increased gold production at Fruta del Norte in Ecuador to a record level for the third quarter. Gold sales rose to 148,326 ounces (124,911). The company expects to reach its full-year production forecast of 475,000-525,000 ounces. The third-quarter report will be released on November 4. The share fell 3.4 percent.
Investment company Öresund’s net asset value increased by 4.1 percent during the third quarter, which was 1.7 percentage points better than the comparative index SIX Return Index, which rose 2.4 percent. Öresund rose 1.6 percent.
In addition to interim reports, there are also acquisitions. Measurement technology company Hexagon has agreed to acquire geotechnical software company Rocscience from TA Associates and the company’s founders and management. The enterprise value amounts to USD 535 million. At the same time, JP Morgan raised its rating on the share to overweight. Hexagon rose 2.8 percent.
Sleep analysis company Sleep Cycle’s board proposes the acquisition of Audiowell for SEK 2,255 million through a share-for-share issue of approximately 92 million shares at a subscription price of SEK 24.50 per share, corresponding to a premium of 22.62 percent. Sleep Cycle surged 21.4 percent.
Telia is becoming the main partner of the Testination technology environment in Trondheim, Norway. The company will contribute advanced 5G solutions and sensor technology for development and testing in areas including shipping, defence and security. Telia fell 2 percent.
Construction company Skanska has secured a railway contract in the northeastern United States. The agreement is worth SEK 1.3 billion. Skanska rose 1.3 percent.
Friday also brings a substantial slate of stock recommendations, with several major banks upgraded.
Barclays raises SEB to overweight (equal weight), target price SEK 262 (204). SEB rose 1.7 percent.
Barclays raises Swedbank to overweight (equal weight), target price SEK 467 (347). Swedbank rose 1.5 percent.
Barclays raises Handelsbanken to equal weight (underweight), target price SEK 146 (127). The share was up 1.2 percent.
Jefferies initiates coverage of Vicore Pharma with a buy rating and a target price of SEK 23. The share rose 6.8 percent.
Handelsbanken raises Nederman to buy (hold), target price SEK 160 (140). Nederman rose 7.3 percent.
