Stock prices have risen sharply since the March low, as investor confidence in the future has picked up as covid-19 infections calmed down, various restrictions lifted, central banks and governments revived, and positive economic news.
For example, yesterday we received “positive” news from the United States: the country’s unemployment rate was better than feared in June, even though it was at a historically high level of 11.1 percent.
In recent weeks, the rise in stock prices has calmed down slightly. For example, the general index describing the share price development of the Helsinki Stock Exchange ended today at 9,195.36 points, which is just over 6 points lower than a Friday a week ago. Compared to Thursday, the general index decreased by 0.5 percent.
Elsewhere in Europe, stock prices also ended up declining today. In New York, stock exchanges were closed as Federal Independence Day is celebrated tomorrow.
The slowdown in the market is due to the development of covid-19 infections. The rumors have risen to an unprecedented rate in the United States and various restrictions have tightened; for example, in Texas people should wear protective masks and in Florida there are closed bars.
Fortum and Tokmanni persevered
The biggest news of the week was the merger of Metso and Outotec, as well as Metso ‘s valve manufacturing company, Neles detachment as an independent listed company. The mining company Metso Outotecin The share fell 1.8 percent lower on Friday compared to Thursday’s closing price, or EUR 4,618.
Neles decreased by 1.8 percent to EUR 8.680. SEB Equities gave Neleks a hold recommendation and a target price of EUR 9.30.
The most traded shares ended up declining on Friday. The exception was Fortum and Tokmanni: The energy company rose by 0.6 per cent to EUR 17.40 and the retail chain by 0.7 per cent to EUR 14.04.
Fortum said that it had agreed to sell the district heating business in the Järvenpää and Tuusula areas To Vantaa Energy, Infranodelle and Kevalle. The total debt-free value of the transaction is EUR 375 million. Fortum estimates that it will record a tax-free capital gain of EUR 290 million in the City Solutions segment in the third quarter result.
Tokmanni’s share price was boosted by the retail chain’s announcement on Thursday: sales in the second quarter, ie April-June, were EUR 285.8 million, compared to EUR 239.9 million in April-June 2019.
Enersense leaps up
Outokumpu the share fell 4.7 percent to eur 2,507 on friday. The mining company said it would raise € 125 million in convertible bonds from institutional investors. The funds will be used for general business needs and early repayment of debts. The convertible bonds can be converted into shares if desired.
The very counter of the day was Finnair, whose share slipped 6.20 percent to freezing and 0.7410 euros. Finnair’s rights issue was oversubscribed. The company will receive a gross capital of approximately EUR 512 million from the share issue.
Energy Solution Company Enersensen the share rose 30.7 percent on Thursday and 20.1 percent on Friday, ending at 3.92 euros. On Thursday, the company announced that it would buy itself from Empower, which is many times larger, for the price of one euro.
Inderes raised Enersense’s target price from EUR 2.50 to EUR 3.60 and reduced the recommendation from the buy level to the increase level.
The analysis house also raised the sale of used cars Kamuxin target price of EUR 8.50 from the previous EUR 8.00 and another share recommendation. The share rose 2.1 percent to EUR 7.64.