The OMXS index ended Tuesday down 0.5 percent - its tenth straight day of losses. A unique situation in several ways, says Mattias Isakson.
The scale of the decline is very limited. The expression "pyspunka" is a good illustration, he tells TT.
Although the decline in terms of number of days has been long, in percentage terms it has been extremely limited. Since the peak on August 3, the decline is approximately 2 percent, and it has occurred during relatively thin trading.
One factor is earnings
Mattias Isakson believes this is partly a matter of profit-taking after a period in which the Stockholm Stock Exchange has performed very strongly by international standards.
In June and July, the Stockholm Stock Exchange was actually one of the strongest globally. We had a number of really big companies like Atlas Copco, Investor, Volvo and others that were up at new record levels, he says.
I would say this is very undramatic.
Since the turn of the year, the Stockholm Stock Exchange's OMXS index has also risen by almost 8 percent. Mattias Isakson is now one of several analysts who believe in strong performance for the global stock market during the autumn, as does the Stockholm Stock Exchange, although without wanting to predict an exact percentage figure.
I think we will come up from these levels, I'm talking globally but also including Sweden, I absolutely believe that. Then I don't know if Sweden will stand out or do better than other markets.
Company earnings
The basis for this is company earnings. Mattias Isakson highlights the engineering companies that weigh heavily on the Stockholm Stock Exchange and have shown clear profit growth.
As long as companies can continue to deliver positive surprises, there will be people who want to be in the stock market.
In today's trading, clothing giant H&M went against the grain with a rise of 4.1 percent. Another winner was housing site Hemnet, which surged 8.3 percent after JP Morgan gave the stock a buy recommendation.
The price of oil has ticked up since yesterday afternoon. A barrel of North Sea oil costs around $91.6.
