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We will update the case.
The Oslo Stock Exchange fell sharply at the opening of the stock market on Monday morning and, in the worst case, fell more than three percent. A few hours later, the stock market has rebounded somewhat and is now down 2.3 percent.
Equinor is down 5.7 percent, following a Pareto downgrade with a target price of NOK 150 per share.
Several other actions fall sharply:
- DNB falls 3.3 percent.
- Aker BP is down 5.3 percent.
- Hydro is down 8.0 percent.
- BW Offshore falls 7.1 percent.
- DNO falls 6.4 percent.
Had it not been for the strong 24 percent rise in Norwegian stocks, the main index would have been even lower.
Sharp drop in Asia
The decline on the Oslo Stock Exchange comes after a sharp drop in Asia on Monday morning, which was again due to the market that now fears a new trade war between the United States and China.
The Hong Kong stock exchange fell 4.2 percent, while the Nikkei stock exchange in Japan fell 2.8 percent.
The spot price for North Sea oil is $ 26.7 per barrel, a decrease of 3.5 percent per day.
The mood buzzed over the weekend.
The Oslo Stock Exchange rose as much as 5 percent last week and closed on Friday, as did the European stock exchanges.
US Stock Exchanges On the other hand, they fell sharply on Friday night, and on Monday morning, future indices point to further declines in the stock market this afternoon following a sharp decline in the stock market in Asia last night.
Ingvild Borgen Gjerde, interest rate and currency analyst at DNB Markets, notes that the tech-dominated Nasdaq fell sharply on Friday.
“The fact that the Nasdaq index has fallen a lot emphasizes that much of the decline in the US was fueled by weak development among the big tech companies, which released first-quarter figures last week,” he wrote in a report on Monday morning.
Fear of a new trade war.
The stock market crash is also tied to President Donald Trump’s criticism of China over the long weekend, saying there is clear evidence that the coronavirus has occurred in a laboratory. He also mentioned the possible escalation of criminal charges against China.
– While such theories have been around for a long time, experts believe that the virus is unlikely and more likely to come from animals. That Trump still embraces theories is seen as an escalation of U.S. criticism of China regarding the spread of the coronavirus, writes Borgen Gjerde, writing that last week’s statement could be the start of more aggressive rhetoric against China again on tape for the US presidential election this fall.
Day of destiny for Norwegian
Norwegian rose 33.5 percent after it was announced Monday morning that shareholders supported the airline’s rescue plan.
This means that between 300 and 400 million crowns will be raised in a share issue, bondholders will convert billions of debt into capital, while parts of the debt of the leasing companies will also be converted into capital.
Thanks to the crisis plan, the company will soon be able to access the state emergency package.
On March 19, the state issued a crisis package in the form of loan guarantees of NOK 6 billion. About half the amount goes to Norwegian, but first Norwegian had to significantly increase the company’s capital. Now you are ready to do it. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
