The Stockholm exchange fell on Thursday, with weakness in the index-heavy industrial and financial sectors. Market sentiment was weighed down by AI-related concerns. Towards the end of the day, there was some recovery, supported by gains on the major European exchanges. The earnings season continued with Nordea and Ericsson as the day’s most significant reports, with the shares moving in opposite directions.
At the close, the OMXS30 index was down 0.62 percent at 3,256.08. Shares worth approximately SEK 35.0 billion changed hands on the Stockholm exchange.
Among the exchange’s larger industrial sectors, telecoms performed best, rising 5 percent. At the other end of the scale, industrials were at the bottom, down 1.3 percent.
Among the leading shares included in the OMXS30 index, Ericsson B rose 6.8 percent, while Telia was up 4.2 percent. Nordea was the weakest performer, down 8.0 percent, while Atlas Copco A fell 4.5 percent.
Nordea’s third-quarter earnings and revenue were in line with expectations. The bank repeats its full-year forecast of a return on equity above 15 percent and a cost/income ratio of 44–45 percent. Share buybacks are being paused pending clarification regarding the risk exposure amount, which has raised concerns among analysts.
Ericsson’s adjusted EBITA result and revenue for the third quarter exceeded expectations. The company expects an unchanged RAN market, while higher component costs are expected to put some pressure on the gross margin next year. Ericsson also announced simplifications to the group structure.
Private equity firm EQT increased its total assets under management to EUR 354 billion at the end of the third quarter, from EUR 267 billion a year earlier. The company has also acquired a US real estate manager for USD 375 million, with a possible earn-out payment of USD 175 million. The share rose 2.5 percent.
Investment company Kinnevik’s net asset value rose 1 percent during the third quarter to SEK 107.75 per share, but has decreased by 17 percent since the start of the year. The outcome was clearly below Pareto’s expectations of SEK 118 per share. The share fell just over 9 percent.
Technology trading group OEM International reported increased revenue and profit in the third quarter. Order intake rose 40 percent to a new record level, while EBITA increased to SEK 261 million from SEK 212 million. The share rose 4 percent.
Defense industry supplier Mildef issued a positive profit warning for the third quarter. Revenue is expected to increase to SEK 825 million, versus the SEK 693 million expected according to FactSet’s consensus, while EBITA is estimated at SEK 175–180 million, above the SEK 111 million expected. Order intake is expected to increase by approximately 130 percent to SEK 2–2.1 billion. The share rose just over 11 percent.
Real estate company Wallenstam’s profit from property management rose in the third quarter compared with the corresponding period of the previous year. The share rose 2.8 percent.
Real estate company Emilshus increased both rental income and profit from property management in the third quarter, driven by acquisitions. The company is simultaneously raising its full-year forecast for profit from property management to SEK 500 million, from SEK 495 million previously. The share rose 1.9 percent.
SEB has reached a final agreement with the New York Department of Financial Services, DFS, regarding historical deficiencies in customer due diligence and transaction monitoring in the Baltics during the period 2015–2019. The agreement means that the bank will pay USD 33 million, equivalent to approximately SEK 310 million. The A share fell 1.4 percent.
Telecom operator Telia had its recommendation upgraded to buy from hold by Deutsche Bank. According to media reports, Telia is also interested in acquiring state-owned Teracom, which is responsible for Sweden’s terrestrial radio and television network.
Real estate company Catena had its recommendation upgraded to buy from hold by Jefferies. The share rose 2.9 percent.
Mycronic had its recommendation downgraded to hold from buy by SEB. The share fell 8.1 percent.
Scandi Standard had its recommendation downgraded to hold from buy by ABG Sundal Collier. The share fell 0.1 percent.
