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FINANCE

Swedish banks hit by Lehman bankruptcy

In a dismal day on the Stockholm stock exchange, shares in Swedish banks took a particular beating amidst renewed concerns over stability in the global financial markets following the collapse of US investment bank Lehman Brothers.

Swedish banks hit by Lehman bankruptcy

The OMXS index was down more than 3 percent within minutes of the opening bell on Monday as investors were greeted with the news of the Lehman bankruptcy.

There was particular concern for Swedish banks, some of which had holdings in the beleaguered US investment bank.

The index dropped further by midday, but recovered some ground by the close of trading to finish at 262.8, down 2.9 percent for the day.

Stock and financial analyst Peter Malmqvist placed blame for the drop on the uncertainty created by the failing of such a venerated US financial institution.

“Of you look at normal patterns when this type of turbulence occurs, first we have a shard drop, then a smaller drop the day after, and then things calm down by the third day,” he told the TT news agency.

But the overall dip in the OMXS seemed small compared with the losses suffered by some of Sweden’s major banks.

The Nordea bank’s shares lost 4.8 percent, closing at 85.30 kronor, while Swedank stock sank 7.5 percent to close at 107.50.

Shares of SEB and Handelsbanken also fell in part due to the roughly 600 million kronor ($88 million) interest each had in Lehman Brothers.

SEB shares finished the day down 7 percent to 109.75 kronor, while Handelsbanken saw its share price drop 3.5 percent to 152.50.

Meanwhile, continued speculation about the possibility of a take over of Scandinavian airline SAS caused its shares to jump 9.5 percent to a closing price of 60.50 kronor.

FINANCE

Stockholm stock exchange suffers worst day of 2018

The Stockholm stock exchange plunged by 2.8 percent on Thursday, making it the worst trading day of 2018.

Stockholm stock exchange suffers worst day of 2018
File photo: Stina Stjernkvist/TT
Stock markets across Europe suffered for the third day in a row as the arrest of a top Huawei executive in Canada has raised the spectre of an all-out trade war between the US and China.
 
For the Stockholm Stock Exchange, it meant a blood-red trading day that ended as the worst of the year thus far. The OMXS Stockholm 30 index fell by a combined 2.8 percent.
 
The majority of the companies on the index lost value, with the exception of Ericsson, which seemed to benefit from the news about its Chinese competitor Huawei with a 1.8 percent increase. Airline SAS also saw its stock increase, rising 4.2 percent thanks to sharp declines in oil prices. 
 
Among Thursday’s biggest losers was the mining company Boliden, which suffered a 6.1 percent drop. The stock of the Stockholm-based tech company Hexagon fell 5.6 percent.
 
Meanwhile, the stock of Swedish auto safety equipment manufactor Autoliv fell 6.1 percent on the news that it expects to pay some 1.8 billion kronor in fines as a result of an European Commission investigation into anti-competitive behavior in the EU. 
 
Stockholm was far the only European bourse to have a gloomy Thursday. The CAC index in Paris fell 3.3 percent, the DAX index in Frankfurt dropped 3.5 percent and the London Stock Exchange's FTSE index decreased by 3.2 percent.
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