It's December, the cold is gripping Europe and the year is about to end. So now is the perfect time to look at the OMX indices which encompass the Nordic and Baltic stock markets. They cover more specifically Sweden, Denmark, Finland, Norway, Iceland, as well as the Baltic countries of Estonia, Latvia and Lithuania.
The OMX indices are a series of indices that represent the performance of stock markets in the Nordic and Baltic countries. OMX is the acronym for OptionsMäklarna Exchange, which referred to the company that managed the Nordic stock exchanges before merging with the Nasdaq Group in 2008 to become Nasdaq OMX Group, and which was later renamed NASDAQ, Inc.
Several distinct indices have the name “OMX” and are used to track the performance of different equity markets in these regions, each targeting a specific segment of the market. Here are the main OMX indices that we will dissect in more detail:
- OMX Stockholm 30 : it is a stock index composed of the 30 most actively traded stocks on the Stockholm Stock Exchange in Sweden.
- OMX Helsinki 25 : this is an index of the 25 most liquid stocks on the Helsinki Stock Exchange in Finland.
- OMX Copenhagen 20 : this index includes the 20 most traded stocks on the Copenhagen Stock Exchange in Denmark.
- OMX Oslo 20 GI : although the Norwegian stock market is not part of Nasdaq's OMX, this new index now tracks the 20 largest capitalizations in the country. The main index of the country remains theOslo Børs All Share Indexwhich tracks the Norwegian stock market as a whole.
- OMX Baltic : it tracks the performance of stock markets in the Baltic countries, including Tallinn in Estonia, Riga in Latvia and Vilnius in Lithuania.
- OMX Nordic 40 : This index includes the 40 most traded stocks on the Nordic stock exchanges, which include Stockholm, Helsinki, Copenhagen and Reykjavik.
Suede
Founded in 1863, the Stockholm Stock Exchange is the premier trading venue for securities in the Nordic countries (including Sweden, Norway, Finland, and the Baltics). Since January, the OMX Stockholm 30 has recorded growth of 6.4%, while theOMX Stockholm PIwhich reflects the entire market, did a little better with an increase of 8.1%.
Within the 30 largest Swedish market capitalizations, industrial stocks dominate with 43.1%, followed by the financial sector which represents 24.4%. The other sectors are then distributed, with telecommunications at 8.1%, discretionary consumption at 7.4% and health at 4.7%. The largest capitalizations in the index are: the pharmaceutical giant Astrazeneca valued at 209 billion USD; the industrial manufacturer ABB weighing 105 billion USD; and the holding Investor AB for 83 billion USD.
Astrazeneca has posted a solid performance this year with a 9% appreciation in its share price, but it is ABB and Investor AB which stand out with particularly remarkable results. The automation and electronics specialist recorded an impressive 41% rise in its shares, while Investor AB, the industrial conglomerate with an aggressive acquisition strategy, saw its share price rise 29%. The index was propelled by the performance of flagship companies, including defense company SAABwith its share price soaring 59%, driven by growing demand for its Grippen fighter jets. Ericssonthe former glory of telecommunications, returns to the forefront thanks to excellent results, particularly in North America, constantly surpassing analysts' expectations. Its price soars by 43%. For his part, the operator Tele2leader on the Swedish market, saw its price appreciate by 33%.
Unlike the market leaders, Volvo Car suffered a decline of 27%, reflecting the turbulence in the European automotive sector. On the other hand, AB Volvo stood out with an increase of 5.5%, affirming its position as European leader in truck manufacturing and number three worldwide. Hennes & Mauritz (H&M), faced with a wave of bankruptcies and increased competition from low-cost brands like Primark and Shein, saw its share price fall by 13%. Likewise, Evolution ABan online casino game developer, saw a 21% decline, impacted by prolonged strikes at its studios in Georgia.
Finland
L’OMX Helsinki 25which brings together the 25 largest Finnish market capitalizations, has lost almost 3% since January, while the OMX Helsinki PI, which represents the entire Finnish market, has fallen by 4.6%.
The index is dominated by the industrial sector which represents 28.8% of its total weighting, closely followed by financials at 21.8%. Next come basic materials accounting for 15.9%, and the telecommunications sector for 13.8%. The other sectors occupy more modest shares.
The largest capitalizations in the index are Nordea Bank (-4.6%), the world's leading elevator manufacturer Kone (+8.6%), the insurance company Sampo (+2.7%) and finally Nokia (+31%) which had a good year by winning numerous contracts for the deployment of 5G networks, particularly in India. Konecranes (+59 %)a world leader in the design of cranes and industrial lifting equipment, represents the largest increase in this index.
However, not all actors have enjoyed the same success. The oil refining specialist In this loses 54% on the stock market. The forestry company Stora Enso lost 25% after selling off a significant part of its assets in a context of weak demand and cost reductions. In its wake, the paper producer UPM-Kymmene also fell by 25%.
Denmark
L’OMX Copenhagen 20 is undoubtedly the most particular index because of Novo Nordisklargest European capitalization. The pharmaceutical giant specializes in treatments for diabetes and obesity with its flagship drug Ozempic. The company represents 62% of the index, and almost half of the total Danish market capitalization. Since January, the company has seen its share price increase by 11%, an upward movement which coincides with the 6.4% increase in the OMX Copenhagen 20 and a 5.7% rise in the Copenhagen PI, highlighting the significant impact of Novo Nordisk on the financial health of the Danish market.
The other big Danish companies are still pharmaceutical companies like Coloplast (+16 %) etLundbeck (+2.7%); the world leader in maritime transport AP Moller Maersk (+0.7%); the carrier DSV (+29%); or the energy group Orsted (+1,9 %).
OMX Copenhagen 20 Heatmap
Norway
Inaugurated in 1819, the Oslo Stock Exchange is a historic pillar for securities trading in Scandinavia. Since the beginning of the year, theOMX Oslo 20 experienced a notable increase of 8.5%, while the index Oslo Børs All Share Indexwhich offers a broader overview of the market, also recorded a 10% increase.
The OMX Oslo 20 index, which reflects the dynamism of the Norwegian economy, is dominated by the energy sector, accounting for a quarter of its composition at 25.3%, thanks to heavyweights such as oil extractors Equinor, Aker BP and the gas supplier Was Energy. However, this year has been difficult for Norwegian black gold with operational problems in the North Sea causing Equinor's shares to fall by 16%, while Aker BP lost 23.4%. Var Energi benefits from the surge in gas prices in Europe, its share price increases by 13%.
The banking sector follows closely, with DNB Bank which alone occupies 16.4% of the index. Finally, aquaculture, with Says et SalMardemonstrates the diversity and strength of the Norwegian maritime sector by together representing 9.79% of the index, for an appreciation this year of 11 and 3.4%.
We can note that Norway has some gems in its market. Kongsberg Groupin the defense and aerospace sector, stands out by constituting 8.1% of the OMX index. I refer you to the analysis carried out by our teamthe stock has soared 184% since January. To mention another Norwegian gem, Elopsthis time part of the Oslo Børs All Share Index, has seen its price increase by 46% this year, and we invite you to discover our analysis on this title here.
Baltic States and Iceland
L’OMX Baltic brings together the markets of the Baltic countries. In reality, only Estonian and Lithuanian companies are included in the index. Two Lithuanian companies exceed one billion euros in capitalization on the markets: the Lithuanian bank Bank of Siauliai is the largest Baltic company weighing 1.6 billion euros and whose share price is up 19% since January. Ignite Groupa Lithuania-based integrated utility focused on renewable energy, comes next with €1.3 billion. In Estonia, only the bank LVH Group (-7.8%) is valued at just over a billion. The largest Latvian capitalization is a distributor of alcoholic beverages Amber Latvian Balm weighing 68 million euros on the stock market.
However, OMX Nordic is enriched by the presence of the Reykjavik Stock Exchange alongside those of Stockholm, Helsinki and Copenhagen. No company is well capitalized enough to be in the OMX Nordic 40 but we can mention a few important players in Iceland: the global supplier of food processing equipment Marel had a very good year with a share price up 35% to reach 3.3 billion euros in capitalization; the country's two main banks Islandsbanki (+12 %) et Arion banki (+2.6%) weigh 1.6 and 1.5 billion euros respectively; Finally Herring processing (-9,6 %) et Brim (-11.7%) are two fishing companies capitalized at 1.2 billion and 975 million euros.
OMX Nordic 40 Weighting
