Vestas Gains as Cyprus Deal Spurs Risk Demand: Copenhagen Mover
Vestas Wind Systems A/S (VWS), the world’s biggest turbine maker, topped gainers in Copenhagen’s benchmark index after a weekend deal designed to avert a default in Cyprus helped rekindle demand for riskier assets.
Vestas jumped as much as 4.7 percent, the biggest increase in the Nasdaq OMX Copenhagen 20 index. The stock added 4.4 percent to 49.80 kroner as of 11:41 a.m. in the Danish capital, with trading volume at 48 percent of the three-month daily average. The OMX Copenhagen index rose 1.2 percent.
President Nicos Anastasiades agreed to shut Cyprus’s second-largest bank, bowing to a German-led bloc and forging a deal that will unlock the nation’s bailout and avert a default in the euro area. The news sent equity markets higher, with the Stoxx Europe 600 Index gaining as much as 1 percent.
“Investors are willing to take on risk after the Cyprus issue was resolved, and Vestas outperforms in such a market,” Mads Zink, head of equity sales trading at Copenhagen-based Danske Bank A/S, said in a telephone interview. “The share also benefits from many investors having closed short bets on the company recently.”
Cyprus avoided a disorderly default and an unprecedented exit from the euro as it struck an agreement over the weekend for a 10 billion-euro ($13 billion) bailout.
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