Welcome Snackers, today’s snack will cover the market developments of DanCann Pharma A/S and Nexcom A/S
Today’s Market Movements
Denmark:
OMX:C25 (-1.26%)
Sweden:
OMX:S30 (-0.78%)
Norway:
OBX:OSL (0.65%)
S&P 500 (0.08%)
Nasdaq (-0.25%)
European markets today were mixed, but generally, Scandinavian markets closed lower. The day saw a continuation to the themes of stagflation and energy. Oil prices surpassed $80 per barrel for the first time in 2014, weighing negatively on markets, but the day was also characterised by the official raising of the debt ceiling. Mads Zink, Head of Cash Equities, told market wire, “the market is very uncertain about which leg it should stand on right now”, summarising the mood perfectly.
In the US, stocks opened higher despite lower than expected jobs numbers. The non-farm payrolls reported 194,000 new US jobs were added in September. Expectations were of around 500,000, a significant undershot. In the context of current themes, the figure eases rising concerns of inflation from a tight labour market. Additionally, it signals the US has not yet reached full employment – a key factor influencing whether the Fed will begin tapering its stimulus in November.
Markets have also feared stagflation, and whilst the numbers were lower than expected, they did signal that the US economy is still growing. However, the non-farm payrolls number highlights that the US is facing structural barriers in achieving full employment. September is the second consecutive month jobs numbers have disappointed; some interpret this to be a slowing down of the US economy.
Today’s snacks
DanCann Pharma A/S gained 6.8% today following news that the Danish Minister of Health, Magnus Heunicke, has submitted a bill to continue the Pilot Programme for medicinal cannabis. The new cannabis bill aims to provide a permanent opportunity to manufacture medicinal cannabis products by extending the pilot programme by four years from 1 January 2022. The bill also introduces the possibility for reimbursement for medical cannabis according to a flexible model. DanCann recently entered into an agreement with wholesale company CannGros and will in future be a significant player in the market for medicinal cannabis under the Pilot Programme.
Nexcom A/S gained 3% following its decision to take a short-term loan of DKK 7 million from Formue Nord. The loan concerns the company having more liquidity than expected tied up in working capital associated with growth plans. Net proceeds are DKK 6.65 million, and the loan is expected to be fully paid before the end of June 2022.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.
Author: Philip Coombes
