Marine Harvest ASA (MHG), the world’s largest salmon farmer, climbed the most in a week in Oslo trading as an expected slowdown of production growth is seen boosting prices ahead of the key Christmas season.
Marine Harvest shares rose as much as 2.4 percent, the biggest intraday advance since Sept. 11. That makes the fish farmer the biggest gainer on the Oslo stock exchange’s OBX index of 25 most-traded stocks today.
Salmon prices have fallen more than 30 percent during the last two months amid surging output from Norway and Chile, the two biggest producers, according to data from Fish Pool ASA, a clearing house for financial contracts on salmon.
That growth is now expected to slow as the “seasonal ramp-up in volumes we predicted in July is now close to being finished,” according to Carnegie AB analyst Marius Gaard. That “sharply” reduces the risk of prices declining further, he wrote in an e-mail today. “In fact, we should see prices starting to increase again -- sooner rather than later -- which is comforting” for both the fourth quarter and next year, wrote the analyst.
Shares in Marine Harvest, 31 percent-owned by billionaire John Fredriksen, have dropped 7 percent since climbing to an intraday high of 6.47 kroner on May 2 as rising output curbed prices. The stock traded 1.9 percent higher at 6.05 kroner as of 1:45 p.m. in the Norwegian capital, giving the company a market value of 22.7 billion kroner ($3.8 billion).
Norway and Chile produce about 60 percent and 20 percent of global salmon volumes respectively, according to Pareto Securities ASA.
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