Market Overview: NASDAQ OMX 2011, wk.

11
Stockholm 30
Highlights:
 Crisis in Japan
 Swedes working overtime at record levels
 Swedish unemployment falls to below 8 percent

MO BODY
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

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX 2011, wk. 11
Stockholm 30
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 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.

2 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX 2011, wk. 11
Stockholm 30

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

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.

3 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX 2011, wk. 11
Stockholm 30

Written by Adomas Aleksandravičius, Edgars Lelis, Laura Zauere

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