February can be summed up as a month in which the world’s stock exchanges experienced mixed developments. In the USA, the S&P 500 index ended the month up 3.1 per cent, while Europe, measured by the MSCI Europe index, rose by 0.7 per cent and the Nordic region, measured by the MSCI Nordic Countries index, fell by 0.9 per cent. The Oslo Stock Exchange Mutual Funds Index ended the month down 3.4 per cent (all measured in local currencies).
The fourth quarter results season
Normally, February and March are months in which the stock market has a micro
perspective. The companies’ reporting of their fourth quarter results
for the previous year and, not least, comments on market developments and
expectations regarding their future results are what attract the most attention.
The fourth quarter 2009 results season is well under way. According to Enskilda, the Nordic companies’ revenues are clearly stabilising and the operating results are improving measured against the previous quarters. Compared to the fourth quarter 2008, however, the Nordic companies’ revenues and operating results have fallen by 10 per cent and four per cent respectively. Almost 40 per cent of the companies have so far reported better operating results than expected. However, the trend seems to be that there are fewer and smaller surprises. The improvements to the margins seem to have stopped. This may be because companies have no opportunity to increase their prices as a result of low capacity utilisation. This means that companies will need to grow their revenues in order for their earnings levels to rise any further.
