Vestas Rises as Share Returns Outpace Bond: Copenhagen MoverGelu Sulugiuc
Vestas Wind Systems A/S shares resumed gains after dropping to their lowest in a week yesterday, allowing stock investors to reap bigger returns than creditors for the first time.
Vestas was the biggest gainer in Denmark’s benchmark index of the 20 most-traded stocks today, rising as much as 2.7 percent. Trading volume was 32 percent of the three-month daily average by 10:42 a.m. The share dropped 7.3 percent yesterday after gaining in five of the six previous trading days.
“Vestas was hit by profit taking yesterday,” Jesper Bamberger, equities adviser at Nordea Markets, said in a note to clients. “We recommend not selling the shares and waiting to see if they regain momentum.”
Vestas’s stock soared 166 percent in the first five months, marking the company’s best year-through-May performance since its 1998 listing, according to data compiled by Bloomberg. Vestas’s 4.625 percent 600 million euro ($780 million) note due 2015 returned 26 percent in the period, including reinvested interest.
The shares are on course to outperform the bond this year for the first time since Vestas sold its 2015 note in March 2010 as the company cuts its workforce by 30 percent over two years and sells factories in an effort to align production with market demand.