Stock Market Dips While Satellite Company Ovzon Surges 42 Percent

The Stockholm stock exchange fluctuated around zero on the week's last trading day after Thursday's half-day holiday, but the broad OMXS index closed at minus 0.3 percent in the end.

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Stock Market Dips While Satellite Company Ovzon Surges 42 Percent
Photo: Fredrik Sandberg/TT

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Among the most traded stocks in the OMXS30 index, the heat pump manufacturer Nibe fell 3.5 percent. At the same time, interest-rate sensitive companies such as the property company SBB and the investment company Kinnevik rose 2.4 and 0.6 percent, respectively.

SBB also announced that the company had sold properties worth nearly 1.2 billion kronor to an American pension fund.

Among the winners was also the satellite communications company Ovzon, whose share shot up like a rocket – up 42 percent – after the news that the company had received an order worth over 1 billion from the Defence Materiel Administration (FMV).

During the trading week, the Stockholm stock exchange rose 1.1 percent.

Sweden's GDP shrank in the first quarter, according to a second calculation from Statistics Sweden (SCB).

May affect interest rates

The krona has strengthened slightly against the dollar, with prices around 9.54 kronor per dollar during the night's trading. The upswing was later dampened and costs 9.59 kronor. One euro costs 10.89 kronor.

German inflation fell slightly more than expected according to EU-harmonized figures. PCE inflation in the US for April also fell.

This may have an impact on how the European Central Bank and the US Federal Reserve will act with their key interest rates going forward – which in turn affects the Swedish Central Bank's maneuvering room and thus indirectly the interest rates that Swedish households and companies pay.

Trump accuses China

On leading Asian stock exchanges, there have been declines during the night's trading. When the Stockholm stock exchange closed, the exchanges in Frankfurt and London were on the plus side, while Paris pointed in the other direction.

The market sentiment globally is simultaneously swinging up and down, influenced by the unclear legal situation surrounding President Trump's tariffs – where a process is ongoing in American courts.

During the day, Trump accused China of having broken an agreement with the US from earlier in May to reduce tariffs. The US stock exchange reacts negatively to the statement.

At the close in Stockholm, all three major indexes in New York were minus.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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