Welcome Snackers, today’s snack will cover the market developments of Asetek & NTG | Nordic Transport Group A/S.
Today’s Market Movements
Denmark:
OMX:C25 (-1.42%)
Sweden:
OMX:S30 (-2.11%)
Norway:
OBX:OSL (-0.96%)
S&P 500 (-1.79%)
Nasdaq (-2.25%)
European markets today were impacted by the continuation of the major Evergrande story. Evergrande China’s largest property developer is reportedly facing large liquidity problems ahead of a deadline on Thursday for two large interest payments on long-standing bonds. Evergrande has outstanding obligations of USD 300bn and if it is to collapse an imminent slowdown in China’s economy is inevitable. This is because China’s property market accounts for up to a quarter of the country’s GDP. As a result, European cyclical stocks have been hardest hit as expectations are for global trade to fall. The worst-hit sector is in commodities; China’s property markets employ a fifth of global copper and steel supply. However, it is thought Beijing will prevent a complete collapse of Evergrande and with the majority of China’s banking sector being state-owned the capital should possess the necessary tools to navigate the crisis. Elsewhere, anticipation of Wednesday’s upcoming FOMC meeting also weighs on markets as clues on the FED’s plan for reducing its stimulus are expected.
Today’s snacks
NTG | Nordic Transport Group A/S today saw its stock price fall 9%. This reaction could be seen as a reaction to the market sentiment that a reduction to global trade could ensue if Evergrande is to collapse. Alternatively, it could be a take profit opportunity for investors following its sustained momentum in 2021; the stock price remains up 88% since the start of the year. Today saw a change in the market’s risk attitude. Fear over the potential collapse of Evergrande steered investors away from higher-risk investments. As a result, the Nordic biotech sector suffered a day in dark red, with few exceptions. The nature of the industry is inherently high risk. Similarly, the SaaS sector, which in Denmark has a tendency towards smaller companies also experienced market retractions across the board.
Asetek today announced excitement towards its Invicta Sim Racing Pedals following the ADAC SimRacing 2021 Expo in Nürburgring, Germany, over the weekend. ASETEK showcased the product and its custom-made RaceHub software for quick and easy adjustments and calibration. André Sloth Eriksen, CEO and founder of Asetek following the event said “The ADAC SimRacing Expo was a perfect opportunity to show off our new Invicta pedals and RaceHub software. I’m delighted that both end-users and resellers have embraced the first of our SimSports product innovations,”
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.
Author: Philip Coombes
