Stockholm shares recover
TT/The Local · 13 Aug 2007, 16:58
Published: 13 Aug 2007 16:58 GMT+02:00
The trend in Stockholm mirrored rises in other European markets, and followed increases in Tokyo and Hong Kong earlier in the morning.
Stockholm's OMXS index fell sharply at the end of last week amid fears of a credit crunch. The collapse of sub-prime mortgage lenders in the US was at the root of the concerns.
By 2:20pm the OMXS index was up 2.5 percent at 388.0. Among the winners were Volvo, up 5.8 percent, and Scania, up 5.0 percent. Lindex increased 15.7 percent to 103 kronor, which is one krona more than rival Kapp-Ahl offered for the company in an unsolicited bid on Monday morning.
Construction company Peab rose 9.7 percent and SAS rose 6.7 percent. H&M was up 0.5 percent to 195 kronor.
Shares in OMX fell somewhat. Borse Dubai, which has been building up a major stake in the Swedish stock market operator, is expected to formally inform OMX of its intentions this week. Borse Dubai is also expected to buy a significant stake in the London Stock Exchange (LSE) this week.
The recovery on international markets is due largely to the fact that the major central banks have made money available to banks hit by the US mortgage problems.