[ad_1]
On Friday, the main index of the Oslo Stock Exchange hit a new high of 950.50 points, and it has recovered from the recession during the pandemic and it is. Since bottoming out in March, the index has risen 50 percent, but the year-round increase is just over two percent.
In a recent weekly report, Nordea Wealth Management writes that it believes in the continued good development of the stock exchanges until 2021. Strategist Erik Bruce has particular faith in the Oslo Stock Exchange and points out that our national stock exchange has not risen as strongly as the major international stock exchanges throughout the year.
– In New York, the broad S&P 500 index is up nearly 15 percent year-to-date, and growth has been driven by tech giants, typical growth stocks, says Bruce.
Apple, Microsoft, Amazon, Facebook and Google’s parent company Alphabet have led the rise in the United States.
– The Oslo Stock Exchange is actually among the weakest-performing stock exchanges this year, Bruce says, and he believes other stocks could change the landscape in 2021.
Most believe in cyclical stocks
In the weekly letter, Nordea writes that the brokerage in 2021 has more faith in so-called value stocks, companies that follow the cyclical development of the economy to a greater extent.
– Industry and commodities in particular, we believe they will have a great advantage in the future, and this applies to the highest degree to the Oslo Stock Exchange, says Bruce.
The Nordea report states:
“These sectors have already been strong performers, but as fiscal stimulus turns into more investment in infrastructure, we believe there is room for continued strong development.”
Bruce adds:
– We believe international stock exchanges may continue to climb 10 percent next year, based on better corporate earnings as the economy reboots. Stocks with the greatest potential, cyclical stocks, may have value development beyond this. So the main index of the Oslo Stock Exchange tends to keep pace with international indices.
An increase of ten percent corresponds to a price of approximately 1,050 points for the main index in one year.
– Also on the Oslo Stock Exchange, we are targeting commodities and industry in particular, says Bruce.
This could be good news for stocks like Norsk Hydro or fertilizer giant Yara, which have also outperformed the index this year.
The price of oil will decide
Equinor’s stake has fallen 12 percent so far this year. It’s even worse for the offshore and oil supplier industry.
– Cyclical stocks are also energy and financial stocks, which have taken the most beatings under the crown. If the price of oil remains the same as today and investments are gradually increasing, energy stocks may also perform better than typical growth stocks, says Bruce.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
