Record day for Swedish stock exchange
TT/The Local · 19 Sep 2008, 15:30
Published: 19 Sep 2008 15:30 GMT+02:00
- Stockholm stock exchange heads north (19 Sep 08)
Traders last saw a similar upward swing on November 20th, 1992 when the OMXS jumped 9.4 percent.
Much of the market’s rise is attributed to measures taken in the United States to help stabilize the banking and financial sector there.
Stock exchanges across Europe rejoiced on the news, with bank stocks leading the way in Sweden.
“After investors earlier moved away from everything risky, now the venture capitalists have returned to the stock market,” said Henrik Mitelman, a head analyst with the SEB bank, to the TT news agency.
“We’ll see how long it lasts.”
Mitelman drew parallels between the crisis package being offered by US authorities and the situation for Sweden’s banks in the early 1990s, when Sweden suffering a major banking crisis of its own.
“They’ve moved a huge amount of risk from the financial system over to the American state. It reminds me very much of how [then deputy finance minister] Bo Lundgren and Stefan Ingves managed the Swedish banking and financial crisis, which was very successful,” he said.