Nordic markets lost ground today. Corporate payrolls added 217 000 jobs in the United States in February but planned layoffs were up. FED Beige Book told the same story of slow and uneven growth with some areas getting up to moderate growth. Surprisingly many of the beaten down stocks posted large gains in the Nordic exchanges, led by Aarhus Lokalbank with over 40%, Byggma at 15%, Parken 9% and Blom over 8%. Nokia will start up a new plant in Vietnam. The required initial investment is around 200 million Euro.
Digia put into writing what has been rather apparent for a while, namely that Nokia's new strategy will impact it as well. The company now estimates that sales will be below 2010 levels and estimates there will be at pressures on the margins at least in the short term. The stock returned to levels it sunk to immediately following Nokia's initial strategy change announcement. At that point the reaction when Digia is concerned was considered an overreaction where as Ixonos sell-off was seen as much more justified. There is nothing particularly new when it comes to Nokia's effect on Digia's sales in this profit warning but the comments on the margins that were spiced with comments about increasing wages and other costs did justify some of the drop-off this time.
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