Finnish shares open weaker, investors fear euro
Finnish stocks opened weaker on Monday as investors focused on the euro's strength against the dollar and brokers expected a soft week ahead with little macroeconomic news scheduled from Finland or the United States.
Finnish stocks opened weaker on Monday as investors focused on the euro's strength against the dollar and brokers expected a soft week ahead with little macroeconomic news scheduled from Finland or the United States.
At 0713 GMT the HEX general index was down 1.1 percent at 5,584.84 points, and the HEX 25 index fell 0.6 percent to 1,228.17. Twenty-five issues rose, 25 fell and 14 were flat.
Mobile phones manufacturer Nokia (NOK1V.HE), Helsinki bourse's weightiest stock, dropped 1.7 percent to 15.05 euros ($17.20), down from its Friday U.S. close of 15.30 euros.
Investors expected the day and the week ahead to be soft.
"Stock markets have been rising so much lately, that in the short term there could be a technical correction downwards," one broker said.
"Markets would need a new trigger to be able to rise," another broker said.
Brokers expected a fairly quiet week, without major macroeconomic data from the United States, but national carrier Finnair and insurer Pohjola are due to report first-quarter results on Tuesday.
Investors are therefore paying more attention to exchange rates as the strong euro has a negative impact on the results of many Finnish companies exporting to the United States like forestries and other manufacturers.
Forestries opened mixed, with Stora Enso (STERV.HE) flat at 9.12 euros and UPM-Kymmene (UPM1V.HE) down 0.7 percent at 12.4 euros.
In a newspaper interview at the weekend, the company's Chief Executive Juha Niemela shrugged off increasing speculation about a possible hostile takeover of UPM.
"It is an expensive company, you will not get it at the current share price of 13 euros. You would have to (double) it to even start dreaming about a hostile takeover," Niemela told daily Helsingin Sanomat on Sunday.
UPM-Kymmene's shares have almost halved from their peak in 2000 and currently trade below their book value.