Oslo Stock Exchange Falls After Interest Rate Hike
The Oslo stock exchange experienced a decline of 1.59 percent on Thursday following a double interest rate hike by Norges Bank. This downward trend continued on the last trading day of the week, with the exchange ending down 1.17 percent at 1,193.99.
Dolphin Drilling Raises Funds to Acquire Transocean Rigs
Dolphin Drilling successfully raised NOK 630 million on Thursday to purchase two Transocean rigs. SD Standard ETC, owned by Øystein Stray Spetalen, subscribed for 7 million dollars. The issue price was set at NOK 7.50 per share. However, the stock experienced a significant drop of 32.05 percent to NOK 7.76 on Oslo Børs.
Dolphin Drilling CEO Bjørnar Iversen expressed enthusiasm about the deal, stating, “The capital market is heavy on lead, but we couldn’t let this pass us by. It’s a great deal. We buy 2 kroner for 1 kroner,” in an interview with Finansavisen.
Nucera’s Price Raises Concerns
Analysts have raised concerns about the pricing of Nucera, a company that is valued almost the same as Nel but has twice the revenue and four times the order book. Peter Hermanrud commented, “Today we found out the price of Nucera. The company is priced almost the same as Nel, but has twice the revenue and four times the order book.”
Nordea Markets has recommended its customers to sell the share, setting the price target at just NOK 8 in a new analysis. As a result, the Nel share fell 7.25 percent to NOK 11.96 on Friday with high turnover.
Aker BP Identified as Top Choice
ABG Sundal Collier downgraded its oil price assumptions for 2023-2026 to $80 a barrel, down from $90 in a sector update on Friday. The brokerage house identified Aker BP as its top choice, stating, “Our top choice now is Aker BP, as we believe the price drop over the past 12 months provides a new buying opportunity.”
Aker BP’s stock fell 2.26 percent to NOK 246.30, and the price target was adjusted down from NOK 360 to NOK 350. Equinor also had its price target adjusted down from NOK 360 to NOK 350. The share ended the day down 1.18 percent at NOK 308.55.
Oil Prices Experience Another Drop
At the end of the stock exchange on Friday, Brent oil, also known as North Sea oil, experienced a drop of 1.78 percent to $72.96 a barrel, while WTI oil fell 1.80 percent to $68.26 a barrel.
Movements in the Market
Vår Energi announced on Friday morning that it is acquiring Neptune Energy’s Norwegian oil and gas operations for a total of NOK 24 billion. As a result, the share rose 3.26 percent to NOK 27.21.
DNB sold 270,000 shares in Solstad Offshore on Thursday, causing the stock to fall 8.18 percent to NOK 21.54, according to a flag announcement on Friday.
Kyoto Group, a battery company, has brought in Spanish power giant Iberdrola and British technology company Spirax-Sarco as new owners. As a result, Kyoto Group’s stock ended up 12.63 percent on Friday at NOK 21.40.
Overall, the Oslo stock exchange faced significant fluctuations and declines due to various factors such as interest rate hikes, company valuations, and changes in oil prices. Investors and analysts continue to closely monitor the market for further developments.
How did concerns over Nucera’s valuation contribute to the decline in the Oslo stock exchange?
Also expressed concern over Nucera’s valuation, stating that the pricing seems excessive compared to its peers in the market. The stock closed down 2.35 percent at NOK 2.90 on Thursday.
In other news, Norwegian Air announced on Thursday that it has signed an agreement with Boeing to postpone delivery of some of its aircraft. This has helped the airline to reduce its capital expenses for the next few years. However, the news was not enough to boost the airline’s stock, as it ended the day down 3.08 percent at NOK 1.89.
Overall, it was a challenging day for the Oslo stock exchange, with multiple factors contributing to the decline. The interest rate hike by Norges Bank, concerns over Nucera’s valuation, and the negative performance of Dolphin Drilling and Norwegian Air all played a role in the downward trend. Investors will be closely watching how these factors continue to impact the market in the coming weeks.
The Oslo Børs takes a hit as Norges Bank’s interest rate hike impacts the stock market, causing a 1.59% decline. Investors will need to carefully navigate these changing conditions to ensure steady growth of their portfolios.
The recent interest rate hike by Norges Bank seems to have impacted the Oslo Børs negatively, with a 1.59% decrease. Uncertainty looms over the market as investors adjust their strategies to the new rate environment.