HCA Market Close 05.12.22: Featuring NORDEN, Hafnia, and Scandinavian Medical Solutions

HCA Market Close 05.12.22 – NORDEN and Hafnia gained as EU sanctions on Russia came into full effect, and Scandinavian Medical Solutions announce a new order.

 

Market Movements:

Denmark: OMX:C25 (+0.06%) ; Sweden: OMX:S30 (+0.48%) ; Norway: OBX:OSL (+0.2%) ; S&P 500 (-1.31%) ; Nasdaq (-1.30%); Stoxx 600 (-0.41%)

Market Drivers:

Markets largely moved lower today as Treasury yields moved higher following a significant beat on the US PMI Services data.

Today’s move was largely driven by the ongoing US interest rates story, as the US PMI Services data, which measures the growth/contraction of the US Service industry, beat analyst expectations with a reading of 56.5, against expectations of 53.1, and an October reading of 54.4. A reading >50 shows an expansion. The data suggests that the Fed will have to do more to slow the US economy and, as a result, US Treasury yields and the dollar rose and stocks declined.

European markets were also negatively affected by the ongoing energy story as natural gas prices jumped on forecasts of colder weather in the continent. After a rather mild October and November, temperatures are beginning to fall, signaling demand surges. Expectations of a China reopening also affected markets, with energy and commodities companies gaining.

 

Snacks from the HCA Platform:

Shares of both NORDEN, Hafnia, and Torm all gained in today’s trading with 5.2%, 1.5%, and 4.6%, respectively and in general, most companies transporting crude oil or oil products gained today as the transport sanctions on Russian oil became effective. The first ban relates to crude oil, and from February 2023, the ban will also include oil products like diesel oil, gasoline, petroleum, fuel oil etc. This is where the above-mentioned companies operate, and the sanctions means that EU companies are not allowed to offer sea transportation of Russian oil. This means that these products must be sourced elsewhere, often adding to days of transportation and thus effectively taking decreasing capacity. Another side effect is that old tankers that should have otherwise been scrapped have increased in value as non-EU companies’ setup new operations for offering sea transportation of oil out of Russia.

 

Today, Scandinavian Medical Solutions (SMS) announced the sale of a 3-Tesla MRI scanner for an American customer. The sale is within the range DKK 2m and below DKK 3.5m in accordance with the company’s information and communication policy. Currently, SMS experiences an increasing interest of used image equipment on the American market. Since the new accounting period for 2022/2023 (1 October 2022 to 30 September 2023) has started, SMS has announced four new orders. Three out of the four orders are MRI scanners for the American market (two within the range DKK 2m and below DKK 3.5m, including today’s order) and one in the range DKK 3.5m and below DKK 5m. The fourth order is an After Sales & Parts solution (in the range DKK 2m to below DKK 3.5m) for a larger number of scanners in the US. The share gained 5.2% in today’s trading.

 

Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:20