Swedish Stocks Fall on German PMI, Alfa Laval: Stockholm Mover
Stockholm’s benchmark stock index declined the most in seven months as a German manufacturing index contracted to its lowest level since 2009 and exporter Alfa Laval AB (ALFA) predicted demand would remain unchanged in the current quarter.
The OMX Stockholm 30 Index fell as much as 4.9 percent and was down 4.6 percent to 1,007.32 at the 5:30 p.m. close in the Swedish capital, the most since Sept. 22 and with all 30 index constituents falling. Sandvik AB (SAND), a Swedish maker of metal- cutting tools and SSAB (SSABA), a maker of high-strength steel, declined the most after Alfa Laval and were down 6.3 percent and 6.2 percent respectively.
“Stocks in Sweden are reacting to a combination of weak German PMI, increased concern for the euro on the back of France’s vote and the government crisis in the Netherlands, and lackluster results from Alfa Laval this afternoon,” said Nordea Bank AB equity strategist Magnus Dagel.
A German manufacturing index based on a survey of purchasing managers fell to 46.3 in April, from 48.4 in March, London-based Markit Economics said in an initial estimate today. Economists had forecast an increase to 49 according to the median of 17 estimates in a Bloomberg survey. A reading below 50 indicates contraction.
Alfa Laval, the world’s largest maker of heat exchangers, said today it sees second-quarter demand on about the same level as in the first quarter, a softening of its guidance from the first three months of this year, when it predicted demand in line with or slightly higher than the fourth quarter.
The company, based in Lund, Sweden, makes tanks and separation gear for cleaning wastewater and purifying ballast water aboard ships, as well as refrigeration and cooling tanks for food processing and beverages. It’s share fell as much as 6.9 percent and was down 6.8 percent, or 9.70 kronor, to 133.9 at the close.
The OMX Stockholm 30 Index (OMX) has fallen 2 percent this year, in line with the STOXX Europe 600 Index.
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