Turbulence in the financial markets sent the Main Index sharply in the red. At the same time, several salmon companies did well after Mowi announced that it would buy NTS for NOK 13.8 billion.
The decline on the Stock Exchange accelerated beyond Monday. The main index ended with a fall of 3.45 percent.
At the same time, the other European and Nordic stock exchanges are falling sharply. The Helsinki Stock Exchange falls above 4 per cent, and both the Stockholm and Copenhagen Stock Exchange fall below 3.5 per cent. At the same time, the Dax index in Frankfurt falls by around 3.5 per cent, and the sharp fall in London and Paris.
Thus, the unrest continues from before the weekend where technology-heavy Nasdaq, among other things, had its worst week since October 2020.
General risk fears characterize the markets
Concerns related to future interest rate hikes have created unrest in the markets since the New Year. Although fear of interest rates still characterizes the markets, in recent days it has shifted to a more general fear of risk, says Erik Bruce, chief strategist at Nordea Wealth Management.
– It is self-reinforcing when the market falls. Many are afraid that we are in a sharp correction and are therefore selling out, says Bruce to E24.
– It is often the case that if you think this is the start of something worse, then you sell out, he adds.
The world stock markets are now waiting for Wednesday’s interest rate meeting at the US Federal Reserve.
The US Federal Reserve signaled in December that interest rates would be raised, and that it would start in March. In that case, it will be the first interest rate change after the crisis cuts in the spring of 2020. The broad expectation is that there will be four interest rate hikes from the Federal Reserve in 2022.
Falling oil prices
The price of oil has also fallen somewhat, and the decline has intensified on Monday afternoon. A barrel of North Sea oil (burnt spot) costs 86.28 dollars just after the Oslo Stock Exchange closed.
Oil giant Equinor was still among the large companies that did best on a heavy stock exchange day. The stock was up much of the day, ending with a slight decline of 0.06 percent as the most traded.
Aker BP (down 3.78 per cent), Hydro (down 4.29 per cent) and Nordic Semiconductor (6.69 per cent) were second on the list of most traded, and helped pull Børsen down.
Autostore also fell on Monday, after the robot storage company earlier in the day emphasized that the lawsuits against Ocado are being maintained. The stock ended up falling 5.43 percent,
Ukraine conflict could affect markets
Bruce also believes that the increased geopolitical tensions between the United States and Russia, due to the conflict between Russia and Ukraine, could have a negative effect on the markets.
– But, the last time Russia invaded Ukraine, there was little outcome on the stock exchange, he adds.
The US State Department on Sunday recommended that all US citizens in Ukraine should leave the country immediately, citing Russia’s military build-up at the border, according to CNBC.
The Moscow stock exchange fell 9 percent on Monday afternoon, and is now down close to 20 percent so far this year.
87 billion shaved off in the Autostore in two months: – A brutal fall
Here at home, the power struggle in NTS continued to make headlines. During the weekend, it became known that the shareholder group again wants an extraordinary general meeting to make changes to the board.
Monday morning, the case took a whole new turn when Mowi announced that it will bid on NTS. Mowi will pay NOK 110 per share, which gives a total valuation of NOK 13.8 billion for the entire NTS.
The NTS share rose 10.50 percent to NOK 121. At the same time, the Mowi share ended down 2.57 percent.
Earlier this month, NTS and Norway Royal Salmon (NRS) entered into a transaction agreement with a view to merging the latter with NTS ‘wholly owned fish farming company Salmonor. This has led to major repercussions in the NRS share as the conflict in NTS has unfolded.
Following the Mowi bid, the NRS share rose 5.92 percent on Monday.
Mowi will buy NTS for NOK 13.8 billion