Ericsson Rises as China Mobile Plans More Capex: Stockholm MoverToby Alder
Ericsson AB, the world’s largest maker of wireless networks, rose to its highest level since 2011 after China Mobile Ltd. announced plans to boost capital expenditure by 49 percent this year.
Ericsson jumped as much as 3.4 percent to 86.4 kronor, the highest level since July 2011. The share traded 1.9 kronor, or 2.3 percent, higher at 85.5 kronor as at 11:01 a.m. in Stockholm, its fourth day of gains. Trading volume was less than half the three-month daily average.
China Mobile, the world’s largest phone company by users, said it will raise capital spending to 190.2 billion yuan ($30.6 billion) in 2013 from 127.4 billion yuan a year earlier, Chairman Xi Guohua said at a briefing in Hong Kong. Ericsson supplies the carrier with wireless gear, which accounts for four percent of the Stockholm-based company’s full-year sales, according to data compiled by Bloomberg.
Last year, China and north-east Asia supplied Ericsson with 17 percent of total sales. The company is trying to sell more services such as network management and maintenance in the region to help offset competition, such as from China’s Huawei Technologies Co.