Bourse closes up despite Ericsson
TT/Peter Vinthagen Simpson · 2 Feb 2008, 08:13
Published: 02 Feb 2008 08:13 GMT+01:00
- Ericsson slashes 1,000 jobs after profit fall (01 Feb 08)
- Sony Erisscon beats analysts' expectations (16 Jan 08)
- Business Feature: Ericsson's annus horribilis (25 Nov 07)
By close of trading the OMXS index had climbed 3 percent to 318.5 points.
Swedish telecom infrastructure group Ericsson presented a weak report on Friday morning and the firm's share tumbled as a result to close the day 3.5 percent down. Ericsson's announcement to cut 1,000 jobs in Sweden did nothing to lighten the mood.
Traders could not decide what to make of Ericsson's report and despite the firm failing to meet analyst forecasts the stock market made a positive start to the day. The stock market resumed its familiar roller-coaster pattern in the afternoon.
At lunch time in Sweden the news filtered through that US software giant Microsoft had bid the equivalent of 285 billion kronor for Yahoo. The news sent positive vibrations across global markets. US employment statistics dampened the good mood slightly.
Engineering stocks performed well with Sandvik, SKF, Atlas Copco and Volvo climbing strongly. Clothing retailer H & M continued its positive development since the presentation of its report earlier in the week and shot up 5.4 percent by closing. Mining concern Boliden led the leader board of the major companies with a climb of 13.54 percent.
Stockholm's OMXS index was in line with other European bourses with Frankfurt's DAX and Paris CAC indices climbing 1.6 percent and 2.2 percent respectively. London's FTSE index finished the day up 2.5 percent at 6,029.2 points. New York's Dow Jones completed the positive end to the week, closing up 0.7 percent at 12,743.19 points.