Monday , October 18 2021

Oil price hikes lifted the stock market



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The main index on the Oslo Stock Exchange ended at 872.61 Friday, after an increase of 0.91 percent.

Shares and share certificates were traded for SEK 4,909 million.

Wall Street opened heavily, charged with technology, but has since recovered.

Nasdaq is now down just 0.2 percent, while Dow Jones is up 0.4 percent.

Characterized by Brexit chaos

Tonighting European exchanges also usually look red.

German DAX is almost unchanged, but French CAC 40 and British FTSE 100 respectively fall. 0.3 and 0.2 percent.

Investors are worried that Britain will move out of the EU without a divorce agreement.

Several ministers left their resignation request after the Prime Minister Theresa May was able to submit the proposal to the Brexit agreement.

In fact, it can boil for MAY's future as a party leader for the conservatives, as the flow of suspicion declarations increases.

And a suggestion of suspicion can approach.

According to Sky News, the inkeers in parliament have asked parliamentarians to clear the schedule.

The pound fell sharply on the broad front yesterday, but is gaining momentum in today's trade.

Oil prices further up

Oil prices continue the upward trend from yesterday.

Brent oil rises by 2.5 percent to $ 68.27 barrel, increasing from around $ 67.10 at closing time in Oslo yesterday.

WTI oil climbs 2.5 percent to $ 58.12 dollars barrel.

The rise is due to the fact that yesterday's figures from the US authorities showed record production and much higher inventory than expected.

What supports the oil price is probably the expectation that OPEC will reduce production at its December meeting.

Analysts believe that this can lead to a rapid upswing, especially if production falls further in Venezuela and Libya.

"We are likely to have at least one million barrels in lower Iran exports from December. I do not want to be surprised that Brent oil is back in the 80's this year," says global strategist Harry Tchilinguirian in BNP Paribas to Reuters Global Oil Forum.

The fact that Iraq has resumed oil exports from its northern Kirkuk field also provides support for oil prices. Analysts are waiting for news volumes from up to 300,000 barrels a day.

See also: Who wins the oil lamp – OPEC or Trump?

Oil's share in itself

The rise in oil prices lifted the oil bill on Oslo Børs and Equinor amounted to 1.8 percent to SEK 208.70.

Otherwise, Aker BP has increased 0.5 percent to 251, while DNO increased 3.2 percent to 14.45.

"It's the oil price that drives recovery in E & P names today, with DNO as the most sensitive company, says Fearnley analyst Henrik Prøsch Selnes to Hegnar.no.

After a weak last month, Pareto analyst Tom Erik Kristiansen expects better DNO times ahead.

"After a short period of time driven by lower oil prices, it is natural for the stock to pick up now when the feeling seems to improve. We expect the positive trend to continue, driven by solid production growth, high free cash flow and the soon available drilling results on the highly promising Baeshiqa- the block in Kurdistan, he says to Hegnar.no.

In the energy sector, we must also assume that Questerre increased 4.9 percent to 2.97 kronor after buying 34 sections in Montney formation.

PGS Revenge

Among the most traded, Otello was positive, by 5.3 percent up to SEK 12.44. Folketrygdfondet announced Friday its withdrawal from the company.

The outbound happens after an aggressive decline in recent weeks, in a warehouse where liquidity is not greatest. An analyst informs TDN Direkt that the absence of this sales pressure in the future can explain some of the price increase.

PGS jumped 2.5 percent to 21.03 SEK after yesterday's villain and SEB analyst Terje Fatnes points out in Finansavisen that the company will sell the Ramform Sterling vessel with a solid premium.

"The stock market is currently at par with book value, but the multi-client library is obviously worth significantly more than book value," he says.

Elkem and Tomra excellent with winnings on respectively. 3.2 percent to SEK 27.47 and 2.7 percent to SEK 227.

We also assume that BW Offshore advanced 4.3 percent to SEK 51.

The front line falls by number

Yesterday's only goalkeeper, Scatec Solar, continued the game with a new 2.4 percent to $ 69.70, but was not close to today's highest level of $ 71.50 from yesterday, triggered by Equinor's big deal in the company.

Frontline was among today's pioneers and surprised by the positive. However, the market sent down 0.5 percent to 53 percent.

"There were even good figures, and particularly good chartering of VLCCs in the third quarter." Fourth quarterly report looks good too, given the consensus expectations before the report, analyst Marius Furuly says in Carnegie to Hegnar.no.

He is in favor of the tanker market in the future and has a purchase recommendation for the share with a price target of SEK 67.

Russian salmon smelter

On the negative side we find mainly Bakkafrost, which has had to stop Russian exports due to bacteria in one of their places.

The stock fell 3.9 percent to 420 kronor.

Pareto Securities believes that the Russian cold shower is a possibility of buying.

Otherwise, SalMar returned 1.1 percent to SEK 487 in the sector after the production manager and board member Geir Berg sold all 764 shares in the company to SEK 499,6259.

Marine Harvest climbed 0.4 percent to $ 194 at today's second highest volume.

An exporter says, according to TDN Direct, to IntraFish that salmon price expectations have fallen sharply since last Friday and that the fish were dumped at ridiculous prices from last week.

Subsea 7 corrected 0.9 percent to 101.35 after yesterday's rally after UBS has cut the course's goals.

Little byks from Seadrill

Relatively speaking, Siem Offshore recovered after yesterday's sharp price decline for soft trade.

The share ended 44 percent to SEK 1.80, with a still low volume.

Next Biometrics came close to 17.5 percent to SEK 43.95, while Hofseth Biocare increased 14.3 percent to 2.64 kroner on Oslo Axess.

Itera was the fourth share that rose two quarters on Friday, more specifically with 10.5 percent to 9.50.

Seadrill ended 3.7 percent to 142.90 kr after that hedge fund legend has bought shares in the company.

Tvenge company Hiddn Securities has received 3.7 Tax Discovery-million, and the stock ended high on the loss list by 7.1 percent falls to 1.44 kronor.

Mercury Market duo WR Entertainment and Lifecare fell most respectively. 24 percent to 19 percent and 11.5 percent to 51 percent – both in soft trading.

We also assume that Belships returned 7.3 percent to 4.82, while Rieber Shipping dropped 6.7 percent to 9.10.

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