Standard &Poor's change the
outlook for Iceland sovereign to negative
The ISK has fallen 1,87% today (14:00) pushing the
ISK TW index up to 121.7 points, its highest level in two months.
The fall is fuelled by Standard & Poor's decision to change the
outlook for Iceland's sovereign to negative from stable. The S&P
decisions was announced earlier today. According to Standards
& Poor's the revision reflects the increasing risks of a hard
lending in the Icelandic economy. The credit rating of Iceland's
sovereign however remains unchanged. The S&P ratings for
Iceland's sovereign are 'A+/A-1' foreign currency and 'AA/A-1+'
local currency. Nordic shares: still scope for a
rise despite wider fluctuations
Glitnir Research has issued a report on Nordic
Glitnir Research sees a continued upward trend in
Nordic equity markets, marked by increased volatility. Global
economic growth is still strong historically, but growth among
industrialised countries can be expected to slow from recent
quarters. Growth in emerging markets remains robust. China pulls the
wagon but other emerging economies such as India, Brazil and Russia
follow closely behind.
Despite the turmoil on global markets
recently, the market sentiment has been evidently solid in the
Nordic area, supported by strong expected earnings growth. The
current credit market problems can be expected to pose a risk to the
market sentiment in the Nordic area in coming months as elsewhere,
but the impact on specific sectors will vary. Glitnir Research
therefore recommends that investors choose their investment options
prudently and especially recommends the oil sector along with the IT
and telecom sectors.Nordic
Equity Strategy Report
slumps below 7,000 points
The stock market opened with a commotion this morning,
and the OMXI15 share index sank by almost 2%. The dip has only
partially been reversed and at the time of writing (14:21) the
OMXI15 has fallen 1.08% today. The index now stands at 6,888 points.
The S&P decision to change the outlook for Iceland sovereign
from stable to negative along with spill-over effects from foreign
markets are the cause for the adverse market sentiment in the
Icelandic market. Yesterday, the OMXI15 share index slumped
below 7,000 points in a sharp dip which saw Icelandic stocks fall
3.65% within the day in the second largest fall in a day this year
and the sixth deepest within the day since the year 2000.
When the stock market peaked this summer, the OMXI15
exceeded 9,000 points, having surged by 40% from the beginning of
the year. However, that rise has now largely been reversed and the
rise this year to date is now around 9.4%.