Forestry Sector Leads a Decline
May 12, 2011
The stock market's general index fell 7.56 to 1980.85, while the index encompassing the 16 most traded stocks fell 18.24 to 2085.56. In all, 58 shares ending higher, 43 lower and 75 remaining unchanged. Total volume rose to 3.08 billion kronor from 3.01 billion kronor a day earlier. The Affaersvaerlden General Index fell 0.3% to 2008.2 from 2013.5 a day earlier. The forestry sector, which posted gains recently, was the biggest loser among sectors and dropped 2.0% on profit-taking and adverse market trends after forestry shares fell in New York a day earlier. Forestry group MoDo sank 4.3%, or 8.5 kronor, to 191.5 kronor after rising 3.4% Thursday and 2.1% Wednesday on hopes about higher pulp prices and takeover speculation. Even the fact that Sweden's largest pulp producer, the nonlisted forestry group Soedra, said it will raise pulp prices in October, failed to rescue MoDo from the profit-taking. Forestry group SCA fell 2.5 kronor to 140.5 kronor, Stora lost 1.5 kronor to 92.5 kronor and AssiDomaen declined 2.5 kronor to 165 kronor. Bourse heavyweights pharmaceutical company Astra and telecommunications group L.M. Ericsson also had a negative impact on indexes as they were pulled along in the downswirl. Astra's Class A stock fell 3.5 kronor to 280 kronor, while Butters lost 2.5 kronor to 154.5 kronor. But automotive group Volvo bucked negative trends on hopes that the government will ease proposed regulations for company cars used by employees. The share rose 3 kronor to 141 kronor. Investment company Industrivaerden closed flat at 243 kronor after announcing that six-month sales dropped 63% to 2.71 billion kronor, while six-month pretax profit doubled to 1.19 billion kronor.
