After a rough autumn where most of the buying interest has revolved around US stock exchanges, the Stockholm Stock Exchange has recently – like several other European stock exchanges – gained new strength.
The Stockholm broad OMXS index had risen 3.7 percent by the close of trading on Wednesday compared to the previous Wednesday. Since the turn of the year, it is up 9.9 percent.
Most other markets have performed stronger than the US over the past week, says Maria Landeborn, senior strategist at Danske Bank.
Not kept up
Since Donald Trump won the presidential election, US stock exchanges have soared with continuous stock exchange records. A lot of capital flowed into the country in the west. Now it seems saturated.
Now investors are looking beyond the US to see what has not quite kept up with the upswing. The American stock exchange is highly valued, Stockholm relatively low, says Landeborn.
In parallel, the leading economies in Europe, Germany and France, have major political problems and simultaneously economic difficulties. This further strengthens the Stockholm perspective.
The weak krona contributes positively in this case from two perspectives, partly making Swedish shares cheap for foreigners, partly functioning as a shock absorber for Swedish export companies in a weak economy, according to Maria Landeborn. Swedish companies are taking market shares globally.
Sweden looks good
This week, the purchasing managers' index, an important thermometer for the manufacturing industry, showed figures that look stronger in Sweden than in the rest of Europe.
It looks pretty good for Sweden, better prerequisites for an economic recovery in Sweden than in the rest of Europe, she says.
This is also reflected in which shares are rising. Cyclically sensitive industrial companies have performed extra well in the upswing.
