Bourse closes down after Telia report

TT/The Local
TT/The Local - [email protected]

The Stockholm stock exchange closed down 0.2 percent on Friday, down 5.7 percent for the week. A poor report from Telia was to blame.


When trading closed for the day the OMXS index stood at 302.3 points, down 0.2 percent on Friday, down 5.7 percent for the week and down 14.9 percent since the turn of the year.

Several major companies presented quarterly reports during the day, telecoms firm Telia Sonera was the the most high profile. Telia Sonera's profit for the fourth quarter amounted to 5.8 billion kronor ($0.91 billion), below market expectations. The announcement that 2,900 jobs were to be cut in Sweden and Finland sent the company's share price tumbling 10.6 percent to 50.50 kronor.

Telecoms operator Tele 2's stock fell 3.2 percent to 122.00 kronor.

Newspaper concern Metro continues to report losses in Sweden. Despite a fall in profits in the fourth quarter, Metro climbed 3.0 percent to close at 5.20 kronor.

Property company Wihlborgs reported a pre-tax profit of 821 million kronor for the fourth quarter, up from 537 million kronor in the corresponding period of 2006. The company's stock climbed 2.4 percent to 118.50 kronor.

Scandinavian airline SAS continued to fall heavily following the presentation of its report early in the week. SAS closed down 5.8 percent to 52.75 kronor.

The banking sector performed poorly on Friday. SEB was down 1.1 percent to 141.25 kronor, Handelsbanken dropped 0.9 percent to 173.00 kronor and Swedbank fell 0.3 percent to 157.50 kronor. Nordea broke the mould and climbed 1.6 percent to 87.10 kronor.

Ericsson rebounded 3.3 percent to 13.20 kronor despite news that key competitor Alcatel Lucent had reported a major loss of €3.5 billion (33 billion kronor).

London's FTSE-index climbed 1.1 percent to 5,784 points, Frankfurt's DAX-index climbed 0.8 percent to 6,789.1 points while the Paris CAC-index dropped 0.3 percent to 4,709.7.


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