The Stockholm Stock Exchange fell further on Tuesday but recovered somewhat toward the end of the trading session. Weakness in the index-heavy industrials sector weighed on performance. Among the companies reporting today, industrial giant ABB fell despite strong order intake, while Tele2 rose after its report.
At the close, the OMXS30 index was down 0.89 percent at 3,238.64. Shares worth approximately SEK 26.7 billion changed hands on the Stockholm Stock Exchange.
Among the exchange’s larger industrial sectors, real estate performed best, rising 2.9 percent. At the other end of the scale, industrials was at the bottom, down 1.8 percent.
Among the leading shares included in the OMXS30 index, Astra Zeneca rose 1.9 percent, while Ericsson B was up 1.6 percent. ABB performed worst, falling 4.9 percent, while Atlas Copco A was down 2.9 percent.
Industrial giant ABB reported revenue and operating EBITA in line with expectations for the third quarter, while order intake was 5.5 percent higher than expected. The company expects comparable revenue growth in the fourth quarter to be approximately in line with the third quarter and a seasonal decline in margins that will be smaller than normal.
ABB is also forming a joint venture with Mitsubishi Electric’s low-voltage distribution business to strengthen its position in the Asia-Pacific region. ABB is paying 79 billion yen, equivalent to approximately USD 495 million, for a 51 percent ownership stake and full control over the business’s sales outside Japan.
Telecom operator Tele2 reported revenue and underlying EBITDA in line with expectations. The forecast for organic growth in underlying EBITDAal is specified at 4–5 percent, while capex as a percentage of revenue is lowered to below 10 percent. The forecast for low single-digit organic growth in end-customer service revenue is reiterated. The share rose 1.5 percent.
Chicken producer Scandi Standard’s adjusted operating profit increased to SEK 220 million in the third quarter, compared with SEK 185 million in the same period last year. The improvement was driven by strong demand and increased efficiency. The share rose just under 10 percent.
Building materials retailer Byggmax rose 11.6 percent. The company increased both revenue and profitability during the third quarter. Operating profit rose to SEK 292 million from SEK 258 million, while comparable sales increased by 5.1 percent.
Oil company Shamaran Petroleum has signed an agreement to merge with Gulf Keystone Petroleum to create a platform for growth in Iraqi Kurdistan and the rest of Iraq. Shamaran is dual-listed in Stockholm and Oslo, while Gulf Keystone trades in Oslo. Shamaran’s depositary receipts were up 0.3 percent.
Residential property platform Hemnet is launching a free listing format that enables real estate agents to publish property listings at no cost to the seller. The initiative is a first step in the strategy to bring the entire public housing supply together on one platform. The share rose just over 5 percent.
Construction company NCC has been commissioned by the Swedish Transport Administration to continue and complete the renovation of the Öland Bridge. The order value amounts to SEK 680 million. The share fell 0.5 percent.
Telecom operator Telia’s rating is upgraded by Barclays to overweight from equal-weight. The price target is simultaneously lowered to SEK 48 from SEK 51 previously. The share rose 0.9 percent.
Mining and smelting company Boliden’s rating is upgraded by Handelsbanken to buy from hold. The price target is simultaneously raised to SEK 629 from SEK 614. The share was down 0.3 percent.
Healthcare company Medicover receives a buy rating from Nordea, which initiates coverage with a price target of SEK 350. At the same time, SB1 Markets lowers its rating to neutral from buy, citing a more balanced risk-return profile. The share rose 1 percent.
Installation company Bravida’s rating is lowered by Nordea to hold from buy. The price target is set at SEK 150. The share fell 4.7 percent.
Communication app Truecaller’s rating is lowered by SEB to hold from buy. The share fell 3.5 percent.
