Pandora Gains as Gold’s Dip Seen Cutting Costs: Copenhagen Mover

Pandora A/S (PNDORA) was the second-biggest gainer among benchmark stocks in Copenhagen today after Nordea Bank AB said declines in the price of gold and silver will lower costs at the Danish jewelry maker.

Pandora rose as much as 2.2 percent, the biggest advance in the Nasdaq OMX Copenhagen 20 Index after Vestas Wind Systems A/S. Pandora’s stock rose 1.5 percent to 203 kroner at 9:41 a.m. in the Danish capital with trading volume at 16 percent of the three-month daily average.

Gold price futures have dropped 5.3 percent this month, adding to April’s 7.8 percent decline, as some investors lose faith in the metal as a store of value amid an improving U.S. economy and a rally in equities. Silver spot prices have plunged about 19 percent since April 9.

“Silver and gold are by far the most important raw materials in Pandora’s production of jewelry,” Nordea said today in a note to clients. “With the current development, Pandora will be able to look forward to significant future cost savings.”

Pandora’s shares jumped 12 percent on May 14 when the Glostrup, Denmark-based company reported first-quarter profit that beat analyst estimates. Eight days later, the stock dropped 11 percent as its majority shareholder, Prometheus Invest ApS, sold 13 million shares to institutional investors for about 2.6 billion kroner ($450 million).

“We see the recent share price decline in Pandora as a good opportunity to buy because the first-quarter earnings report confirmed that the growth story is back,” Nordea said.

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tasneem Brogger at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.