29.11.2010

The market reaction to the most recent bailout story was positive for a moment but the worries took over the market sentiment when news of Italian bond auction which was not fully subscribed came to light and the end result wasn’t a pretty number. Nordic markets did considerably better than most European peers but still lost considerable ground. Swedish economy has been advancing at its fastest pace in half a century and Stockholm outperformed today as well. Capital gains taxes are projected to go about in many western economies in the near future. This could mean heavy selling by the wealthy in the coming months.

Nordea gained after Goldman Sachs raised the stock to hold from sell. Lundbeck saw some heavy selling at midday. The news that New Zealand has granted the permission for a generic copy of Escitalopram alone did not seem to justify the market reaction of nearly minus five percent. Vestas Wind was not to be outdone and retreated a little more than 5%. Renewable Energy Corporation received an analyst downgrade to add to its misery and retreated 6+%.

Økonomisk Ugebrev wrote about the reasons why the offer price for Zealand Pharma’s public offering came in at the bottom of the interval that Zealand Pharma had announced possible. In addition to the problems that the wider biotech industry has been having in efforts to raise money this year, the magazine cites uncertainty of the pipeline value and large and confusing amount of management bonuses and options.

Ratos AB has made a public offer to all shareholders of Biolin Scientific AB. Ratos is offering 11.50 SEK per share. Biolin’s stock rose to 11.40 SEK per share and the company’s board is unanimously recommending taking the offer. Ratos has been keeping busy as it also said it has concluded an agreement to acquire 100% of the shares in the auction and valuation company KVD Kvarndammen AB for550 million SEK. Ratos’ B-share traded down nearly 2%. Klövern is appealing the case concerning further loss carry-forwards totalling approximately SEK 5 billion to the Supreme Administrative Court the company said in its release.

Hemtex lost more than 10% after CEO Erik Gumabon told Dagens Industri that the situation in Hemtex is serious and that he is starting to understand how poor management was in the past. Jinhui Shipping advanced more than 7% on an upbeat Q3 report. Greentech seems to have some explaining to do concerning private placements and some financing agreements in addition to all the other issues that have surfaced as of late. Dolphin interconnect solutions gained more than 50% as the board announced proposals for a share issue in connection with a proposed change of strategy.