Market Overview No.2 Oslo Bors

8/2/2019 Market Overview No.2 Oslo Bors

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Oslo Brs (OMX Oslo)Norwegian Market Overview19.03.201223.03.2012

All share index

Figure1. All share index during week 12. Source:http://www.oslobors.no

The result of trading this week is decreasing in All share index (OSEAX) by 1.42%. ITS lowest

Value has been observed on 22nd

of March, but as is it is clearly seen from the graph, the index

has been decreasing the whole week, except Friday.

According to Wall Street Journal, this week European stocks have the biggest weekly loss of the

year. Spanish stock market was among region's worst-performing indexes, as banks there

declined again. BBVA fell 1.1%, Bankinter declined 1.3% and Banco Santander lost 1%.

Similar processes have happened to commodities, caused by weak global PMI data (meaning

that PMI indexes reflected the slowdown in the development of the Chinese economy, as well as

slowdown of recovery in the US). This definitely make traders to be afraid of Oil dropped 1.6%

to 105.53, natural gas plummeted 4.2% to 2.261, and gasoline eased .3% to 3.3473. Copper shed

1.9% to 3.7725, silver fell 2% to 31.58, and gold ticked down .3% to 1645.30.

Norways krone rallied as oil prices surged amid concern about supply disruptions.

This week, the price on Norway bonds decreased, thats why it became more profitably to hold

bonds, then to buy shares. For example, the index for government bonds for 3 years (ST4X) has

increased rapidly, that leads less activity on share market.

Graph for ST4X

Figure2.Graph for ST4X during week 12.Source http://www.oslobors.no
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Forecast

Figure3. Changing in OSEAX during this year. Sourcehttp://www.oslobors.no

This week the index dropped, but if we look for a longer period (this year), we can easily

observe the tendency of increasing. From the beginning of the year index has increased by

approximately 40 points.

Figure4. Changing in OSEAX during last year.Source:http://www.oslobors.noThis graph shows the dynamic for the year. As we can see there was a huge decrease, but now

the index returns to high positions. It is possible that for some time it will keep increasing, but it

will achieve the highest point and will drop down again. However, it can take a long time before

it will happen.
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Turnover

Figure 5. Changing in OSEAX & Turnover: left-during week12; right-during 2 months. Sourcehttp://www.oslobors.no

Turnover has increased this week. And the graph for longer period shows that it increases

slowly, but continually after previous recession. We think it happens because investors

confidence and believe in financial markets and companies is climbing back again after the

uncertainty caused by long recession. That makes us believe that turnover will keep increasing

further.

This weeks best performer, Yara International ASA, is the worlds leading supplier of

fertilizers. It is selling more than 20 million tonnes of fertilizers in more than 20 countries. Thestock price climbed +4.7% on Friday morning due to a discovery of unacceptable payments

from the companys joint venture in Switzerland. The stock has rapidly fallen from the end of

February, but since the middle of March it has been gradually rising and there is a possibility that

such a positive tendency will continue in the near future because of the positive news.
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Figure 6: Price development of Yara International during the week. Retrieved from:http://www.oslobors.no

Subsea 7 SA became second best winner of this week in Oslo OMX stock market. It increased

its profits for the week by 1.75%. As we know, it specializes on designing, fabricating, building

and installing equipment for the offshore oil industry. One of the reasons why the company has

experienced the growth this week was the announcement that one of the companys diving

support vessels, called Seven Havila, became the most popular tool in its field (especially in

Mexico Gulf). In fact, the company has achieved a world first in the number of divers working

on the seabed. This popularity with clients was appreciated by the investors, and they preferred

to buy more shares issued by Subsea 7 SA in order to gain higher dividends. Second reason for

Subsea 7 SA success was their declaring a special dividend paying and saying it will buy back

the shares it has previously bought. This claim automatically increased willingness of investors

to hold more of the shares, because it meant that Subsea 7 As shares would bring higher

dividends to their holders soon enough.


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Figure 8: Price development of Schibsted during the week. Retrieved from:http://www.oslobors.no

In conclusion we can say that, most probably, the price of crude oil will go up a bit next week(because in a long perspective it has been increasing for quite a while, and this week was rather

an exception with its decrease). Therefore companies connected with extraction of oil, such as

Subsea 7 A, will increase their prices per share even more. We also expect that increase in

turnover will become even more pronounced, and by this will improve the development of All

share index, even making it positive again. Therefore, trust in Oslo OMX is going to be restored

and there will be more companies who will end next week with a positive profit than those with

negative.

Review by: Margarita Cernova, Yauheni Hanchyts, Viktorija Juskevica.

Documents

Market Overview No.2 Oslo Bors