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OMX

Investigation over possible insider trading in OMX

Prosecutors in Stockholm have launched an investigation into possible insider trading in the days leading up to the announcement that Nasdaq and Borse Dubai had agreed to buy Nordic stock exchange operator OMX.

Published: 9 October 2007 11:38 CEST

The insider trading is suspected of having taken place on 18th and 19th September.

“These were large volumes and big price movement. Plus that we now now that news was made public,” said prosecutor Robert Engstedt of the Swedish Economic Crimes Bureau.

OMX shares rose sharply on September 18th, a Tuesday. The following day they fell by 7 percent, after which trading in OMX was suspended. On the morning of 20th September Nasdaq and Borse Dubai made their deal public. Several media had already published information about the agreement.

Suspicions were raised at both Finansinspektionen (FI), Sweden’s financial services regulatory authority, and the Stockholm Stock Exchange. They reported the matter to the Swedish Economic Crimes Bureau.

Engstedt was on Tuesday giving few details about his investigation. He would not say whether he knew who lay behind the share purchases, whether anyone had formally been declared a suspect or how the investigation would proceed.

STOCKS

Stockholm stock market hits new all-time high

The Stockholm stock exchange closed at a record high on Wednesday, with the OMXS index climbing 1.4 percent to smash the previous record set in 2007.

Published: 15 January 2014 17:54 CET
Stockholm stock market hits new all-time high

The OMXS closed at 430.6, besting by more than three points the previous record of 427.2 set in July 2007.

"Finally, after more than five years, we've come up to the all-time high," Nordea stock strategist Martin Guri told the TT news agency.

The Stockholm stock market's advanced was in line with developments on other exchanges around the world, and can be attributed to a new World Bank forecast indicting advances in global economic growth. Strong retail sales statistics from the United States helped as well.

Guri rejected any notion that the Stockholm exchange's recent rise was any sort of bubble, but is simply a continuation of a strong 2013.

"We had the worst financial and economic crisis since the 1930s. Now we can say that we've left it behind and are moving on to the next chapter," he said.

"The market could rise somewhere between ten and 20 percent this year."

He added that there are many signs of economic improvements, and while economic growth may not be strong, risks have deteriorated, bolstering investor confidence. 

Guri cited central banks in the US, Japan, and the eurozone for stimulating stock market growth.

"They've promised financial markets they plan to keep interest rates low," he said.

Wednesday's OMXS rise was led by heavyweights such as retailer H&M and bank Nordea, which climbed 2.7 percent and three percent, respectively, as the Swedish fashion retailer reported better than expected sales results for December.

Other market winners on Wednesday included pharmaceutical firm AstraZeneca, telecom equipment maker Ericsson, and truck maker Scania, all of which rose by around two percent.

The Swedish krona weakened slightly against the dollar, which can now buy 6.48 kronor. The krona-euro exchange rate remain unchanged, at 8.80 kronor to the euro.

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