Market Overview: NASDAQ OMX Stockholm 2011, wk.

11
Highlights:
 Crisis in Japan
 Swedes working overtime at record levels
 Swedish unemployment falls to below 8 percent

It was an extraordinary week for OMX Stockholm 30. Even though the index declined only by
0.1% and stopped at 1091.37 points, there were huge fluctuations this week. Security system firm
ASSA ABLOY B and investment company Investor B were the biggest losers this week with
-5.4% and -3.94% respectively. The biggest gains were made by SKF B 0.81% and Modern
Times Group B +0.54%. The total turnover was about 9billion EUR this week.
By observing last week’s graph of OMX Stockholm 30, it can be defined as convex. When
negative news about the tsunami and the damaged nuclear plant came, the market faced one of the
biggest declines after the financial crisis. During the first half of the week, the index decreased by
3,49%. Fortunately, some good news about the unemployment level in Sweden was published.
Also, a dead cat bounce effect appeared and investors started to buy more stocks because of lower
price. These two factors combined were able to lift the index to the same level as it was before.

Figure 1. Stockholm30 index. Source: http://www.bloomberg.com

Ericsson is a world-leading provider of telecommunications equipment. It is also one of the

strongest shares in OMX Stockholm30 market, weighting 11.45% of whole index. During the
week its preference shares Ericsson B decreased by 3.52%, reaching 8.05 EUR. On Monday the
whole Stockholm stock market suffered from crisis in Japan and Ericsson B was not an exception,
losing more than 2.5% during the day. However, later this week, on Wednesday Ericsson provided
statement on situation in Japan, in which company promise to remain fully committed to supporting
all their customers in any way possible in securing that the vital mobile networks are functioning
satisfactorily. This sharpened up mood of investors and gradually increase in Ericsson B was

Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
1 it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX Stockholm 2011, wk. 11
observed. On 17th March Ericsson made Industry’s First HD voice call on CDMA, which increase
voice quality, intelligibility and decreases listening fatigue, even in environments with high
background noise. Overall, after crisis in Japan Ericsson started to recover and its value increased,
therefore it is very likely to rise in future.

Figure 2. Ericsson B index. Source: http://www.bloomberg.com

The week’s biggest loser is ASSA ABLOY (ASSA-B) whose share value decreased by 5.40%.
ASSA-B opened the week at 19.58 EUR and closed it at 18.89 EUR. ASSA ABLOY is the global
leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and
convenience. From Monday till Thursday constant decrease in ASSA-B share value was observed.
This was mainly caused by situation in Japan and due to lack of new technologies developed by
ASSA ABLOY. However, on Thursday company announced their new ideas about relevance of
secure identity and new technologies developed in this sector. This appeared on Friday, when share
value of ASSA-B slightly increased. Conclusion: share price is heavily dependent on situation in
Japan and new ideas and technologies, which company can create. Therefore, we recommend be
very careful with this stock; better stay away from it unless you know that new technologies which
will be substantial for ASSA ABLOY is created.

Figure 3. ASSA-B index. Source: http://www.bloomberg.com

Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
2 it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX Stockholm 2011, wk. 11
SKF B was a company which was the most successful this week. It experienced growth in share
value by 0.81%, opening the week at 18,99 EUR and closed it at 19,61 EUR. The impact of
Japan’s tragedy was not so extreme for this stock. It appeared only on Monday when share value
slightly decreased. Also, the annual report was published which showed good results about the
performance of the company. This improved mood of investors and resulted in a price boom at the
end of the week. Overall, taking into consideration this week performance and growing share value
last days, we predict continuing growth next week.

Figure 4. SKF B index. Source: http://www.nasdaqomxnordic.com

The unemployment rate in Sweden has decreased this month (from 8,2% to 7,9%), which means
that Sweden recovers gradually after the recession. However, even due to this fact the mood of
NASDAQ OMX Stockholm is still rather negative. The reason for it could be still existing Japan
crisis effect. However we still think that recovery of economy will have stronger effect on Swedish
stock market, taking in consideration that some companies already have found a way how to
sharpen up the mood of investors and make share price grow. It will be interesting to see the
behavior of OMX Stockholm due to the growth of GDP.

Written by Adomas Aleksandravičius, Edgars Lelis, Laura Zauere

Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
3 it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.