Welcome Snackers, today’s snack will cover the market developments of OrderYOYO, Shape Robotics, DS NORDEN and Djurslands Bank.
Today’s Market Movements
Denmark: OMX:C25 (+0.76%) ; Sweden: OMX:S30 (+0.53%) ; Norway: OBX:OSL (+0.52%) ; S&P 500 (+0.24) ; Nasdaq (+0.68%)
Markets in Europe and across the Atlantic rallied today following interest rate decisions from the Fed and Bank of England in the last 24 hours. The conclusion, the party goes on. The Fed, announced the US economy is strong enough for it to begin tapering its bond purchasing programme, and as expected, this will be at a rate of USD 15bn per month. Therefore, the stimulus will not be withdrawn until mid-2022, and thus there is little chance of any interest rate hikes until then. The Bank of England decided not to raise interest rates in the UK following BoE governor Andrew Bailly’s stern comments last month that the UK “will have to act” to tackle inflation. His stance at this meeting was softer; he now thinks the central bank will likely need to raise rates “over coming months”. Markets reacted positively to both announcements and the continuation of near-zero interest rates.
However, weighing negatively on markets was increasing oil prices following an OPEC+ meeting. The group declined to accept President Biden’s plea to increase output to help calm oil price rises. This comes despite warnings of a growing deficit between supply and demand.
Today’s snacks
OrderYOYO fell 32% today as the company cuts the guidance for 2021-2023, citing difficulties in the UK with closures and hires by their restaurant customers. The situation is not expected to last but moves the growth plans six months out. Tomorrow the management will host a call elaborating on the situation. https://lnkd.in/eVPzY4Zc
Shape Robotics gained 5.5% today following the announcement that its subsidiary in Romania has entered into a memorandum of understanding with Global Education, part of the Lumina Foundation, involving 5 SmartLabs worth EUR 95,000 apiece. Thus, the total order value is up to DKK 3.5 million, expected to be realised in Q4 2021.
DS NORDEN fell 8.2% today following the publication of its Q3 earnings report. The company realised a strong quarter and initates a share-buy-back programme worth USD 40m, equal to 4% of the company’s market cap. The negative price action is likely relating to the company’s narrowing of its guidance to USD 150-200m, from USD 140-220m.
Djurslands Bank reported yet another strong quarterly result this afternoon but having already upgraded guidance in October the market reaction was limited. However, worth noting is that the guidance on pre-tax profit is currently DKKm 110-130, and the bank has already accumulated DKKm 102.1 in the first 3 quarters.
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement.
Author: Philip Coombes
