Friday, 31 December 2010

30.12.2010

Investors locked in gains and particularly losses for tax planning purposes on the last trading day of the year in Nordic markets. Nordic main indexes did back around half a per cent today, but were up between 18 to 36 percent for the year. New jobless claims in the United States dropped below 400 000 this week for the first time in ages. Chicago PMI showed a massive improvement in December. Italy had to pay considerably higher price to get its 10-year loans sold.

Strengthening yen put a damper on Japanese stock market. The Nikkei index was down slightly for the year. Chinese manufacturing data hinted some moderating in the pace of expansion, both slightly lessening inflation worries and waking up a few bears who see any drop as a potential prelude for a crash. There were rumours circling around concerning the fate of Skype in China.

Elektrobit clarified the ’clearly negative’ result guidance it gave in connection with the booking of an impairment provision regarding receivables from TerreStar Networks. The trickle effects were much more than what was hoped for as the Wireless segment of the company has not had a whole lot to do as a result of sales to TerreStar at close to zero. The markets were not all too surprised as the company has been disappointing investors for quite some time already.

Swedish Orphan Biovitrum decided to opt out of Sym001 (Rozrolimupab) drug candidate, which is being investigated for the treatment of ITP (Immune Thrombocytopenic Purpura)and HDN (Haemolytic Disease in Newborn)prevention. Sym001 is currently in phase II clinical studies. Swedish Orphan Biovitrum returns its portion of the rights to the developer and partner Symphogen citing strategic reasons.

Vestas announced several new orders but was still down for the day. Tiimari launched a 3 million convertible capital loan, fully underwritten by major shareholders. The company apparently had to get this out to meet certain loan covenants, and considering how little 3 million is in the bigger scheme of things for the company, the Easter holiday sales will be make or break time for Tiimari.

Intrum Justitia together with East Capital Explorer, East Capital Financials Fund and the European Bank for Reconstruction and Development formed a new joint venture to invest in Russian non-performing retail loans. NeuroSearch posted some additional meta-analysis of the Huntexil data. The stock was up slightly but it is an uphill battle to regain investor trust after the initial data fiasco.

Mikhail Khodorkovsky and Platon Lebedev were sentenced to 14 years in jail in the trial I alluded to in 31.11.2010 blog item. Reuters quoted U.S. officials saying issues in the trial may hamper Russian WTO plans but somehow one would doubt that words become actions in such an important issues, especially concerning the recent progress in the talks.

Due to a death in the family, these daily wrap-ups may be slightly truncated until I can get all the necessary arrangements done, which should last couple weeks at the most.

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