The Stockholm stock exchange took a significant hit during Tuesday's trading session, weighed down by global declines rooted in widespread concerns over high valuations among AI-related technology stocks.
At the close, the OMXS30 index was down 2.28 percent at 2,673.73. Shares worth approximately SEK 20.5 billion changed hands on the Stockholm exchange. At its lowest point, the index had dropped 2.6 percent, marking the steepest intraday decline since April 11, when the index fell by 2.7 percent.
All industrial sectors saw losses. The largest declines came from the energy and industrial sectors, both down 2.5 percent. Real estate saw the smallest drop, retreating by 1.1 percent.
Among the leading stocks included in the OMXS30 index, Astra Zeneca slipped 0.7 percent, while Evolution was down 0.9 percent. ABB had the weakest performance, tumbling 4.4 percent, while Saab B fell 4.3 percent.
November has seen a flurry of capital markets days, and power and automation company ABB on Tuesday presented new financial targets along with a reorganization into three business areas. The target for operational EBITA margin was raised to 18-22 percent (previously 16-19 percent), and the return on capital employed was increased to over 20 percent, up from the previous target of over 18 percent.
Construction company Skanska raised its financial target for the operating margin in its Construction division to at least 4.0 percent, up from 3.5 percent, ahead of its capital markets day in Seattle. Other financial targets remain unchanged. The stock fell 3.9 percent.
Credit rating agency Moody's affirmed telecom giant Ericsson's Ba1 credit rating and raised its outlook to positive. The agency cited expectations for a continued strong financial profile, stable operational development, and solid cash flow generation. The stock dropped 2.1 percent.
The reporting season continued, with optics chain Synsam posting EBITDA slightly above expectations at SEK 418 million for the third quarter. Sales were 2.9 percent better than expected. The stock rose 4.2 percent.
Media company Verve reported adjusted EBITDA of EUR26.1 million, below the expected EUR28.2 million. However, the company raised its full-year revenue forecast to EUR560–580 million (previously EUR485–515 million), while the adjusted EBITDA forecast of EUR125–140 million remained unchanged. The stock plummeted 17.1 percent.
Refrigeration wholesaler Beijer Ref continued its acquisition spree, buying two American HVAC/R distributors with a combined annual revenue of about SEK 800 million. The purchase price was not disclosed. The stock fell 2.2 percent.
Home improvement chain Clas Ohlson strengthened its position in home electronics repair by acquiring 70 percent of Phonelife and Reservdelaronline Sverige. The deals correspond to valuations of SEK 184 million and approximately SEK 45 million respectively, on a cash and debt-free basis. The stock declined 0.7 percent.
Holding company Ratos dropped 2.4 percent. The company has appointed Gustaf Salford as new CEO, taking over in December after Jonas Wistrom announced his retirement. Salford joins from medical technology company Elekta, where he served as CEO for five years and previously worked as CFO and management consultant.
Swedbank will receive SEK 837 million from the Swedish Tax Agency after overpaying VAT for four years. The overpayments occurred between 2019 and 2023. The stock fell 2 percent.
It is now confirmed that music streaming service Spotify will launch audiobooks in Sweden, according to multiple media reports. Speculation had been ongoing for some time about Spotify's potential audiobook offering in Sweden. The current market includes Storytel, whose stock dropped 3.6 percent.
Technology company Intellego was halted from trading. The company's CEO and major shareholder, Claes Lindahl, has been arrested on suspicion of serious fraud.
On the analysis front, several banks initiated coverage of security company Verisure. JP Morgan started with overweight, while Goldman Sachs began with neutral. The stock fell 4.3 percent.
Investment bank SB1 Markets initiated coverage of polymer group Hexpol with a buy rating and a target price of SEK 104. The stock rose 0.3 percent.
Pareto Securities upgraded security company Yubico to buy from hold. The stock gained 0.3 percent.
Deutsche Bank upgraded bearing manufacturer SKF to buy and raised its target price to SEK 280 from SEK 240. The stock was down 1.5 percent.
