The Stockholm Stock Exchange climbed steadily on Friday, reaching a new all-time high during the day.
The defense company Saab performed strongly, while mining firms Boliden and Lundin Mining rose on news of a possible merger between industry giants Rio Tinto and Glencore.
In the afternoon, U.S. employment statistics for December were released. The number of employed increased by 50,000, lower than the analyst consensus, which according to Bloomberg was an expected increase of 70,000. Unemployment stood at 4.4 percent in December, just below the consensus estimate of 4.5 percent. Hourly wages rose by 3.8 percent year-on-year, which was higher than the anticipated increase of 3.6 percent.
At the close, the OMXS30 index was up 1.25 percent at 2,974.60. Shares worth approximately SEK 22.2 billion were traded on the Stockholm Stock Exchange.
The best-performing sector among the major industrial groups was energy, which rose by 3.2 percent. At the other end, telecommunications lagged behind with a decline of 0.7 percent.
Among the leading stocks included in the OMXS30 index, Saab B rose 6.3 percent while Boliden was up 3.8 percent. The worst performer was Telia, down 1.5 percent, while Tele 2 B fell 1.3 percent.
The defense company Saab was, as usual, the most traded stock and once again reached a new record high. The company received a new order worth SEK 1.5 billion.
In the mining sector, Rio Tinto confirmed that preliminary talks had been held with Glencore regarding a potential merger. A combination of the two companies would create the world's largest mining group. On the Stockholm Stock Exchange, in addition to Boliden, Lundin Mining also rose, up 5.9 percent.
Home improvement chain Clas Ohlson increased its sales in December by 5 percent compared to the same month last year. Organic growth was 7 percent. The stock rose 0.9 percent.
Biotech company Alligator Bioscience presented new data from the phase 1b/2 Optimize-1 study with mitazalimab in combination with mfolfirinox for metastatic pancreatic cancer. The stock surged 49 percent.
Bank of America downgraded its recommendation for industrial company Sandvik to neutral from the previous buy. Nevertheless, the stock rose 1.5 percent.
Goldman Sachs has initiated coverage of online brokers, giving a neutral rating for Avanza and a buy for Nordnet. Citi reiterated its buy recommendation for Avanza and raised the target price. Avanza was up 1.4 percent while Nordnet increased by 1.3 percent.
Among smaller companies, Dahlgren Capital made a takeover bid for software company Comintelli. The offer is SEK 3.50 per share in cash, a substantial premium compared to Thursday's closing price of SEK 2.08. The bidder has secured 64 percent of the company's shares. The stock jumped 62.5 percent to SEK 3.38.
Furthermore, fertilizer company Cinis Fertilizer warned that it is in a strained financial situation and needs a liquidity injection in the near future to ensure continued operations. There is a risk that the company may have to initiate formal insolvency proceedings. The stock fell by 59 percent.
SAAB AB is a world leader in the design, manufacturing and marketing of defense and security systems and equipment for military, space and civil sectors. Net sales break down by family of products and services as follows:
- electronic defense systems (33.3%): radars, sensors, submarine and terrestrial airborne surveillance systems;
- aeronautical systems (26.1%): military aircraft, combat aircraft, avionics, etc.;
- armament equipment and systems (22.5%): military equipment, missile systems, weapon systems, ammunition, armed forces identification systems, camouflage systems, etc. The group also provides security and defense solutions (combat systems, training, simulation, security and communication solutions, air and sea traffic management systems, etc.);
- naval systems (12.9%): submarines, combat ships, underwater mine detection systems, etc.;
- support services (4.2%): provision of services in the areas of systems development, integration and security, information security, communications, technical information, logistics, etc., and technological consulting in the fields of aviation, defense, telecommunications, etc.;
- other (1%).
Net sales are distributed geographically as follows: Sweden (41%), Europe (24.8%), North America (9.6%), Asia (8.4%), Latin America (7.1%), Australia (5.3%), Africa (0.3%) and other (3.5%).
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