The Helsinki Stock Exchange is counting on the fear of an attack on Ukraine

The Helsinki Stock Exchange is counting on the fear of an attack on Ukraine

The trading week has started with a significant decline. Share prices on the Helsinki Stock Exchange fell by 3.6 per cent on Monday and recovered slightly in the afternoon. Markets also fell elsewhere in Europe, worried about a possible Russian invasion of Ukraine.

According to Nordea Bank’s Chief Investment Officer Antti SaariAs early as Friday, the US stock market reacted to the information about the increased risk of Russia invading Ukraine this week, which spread after the closure of European stock exchanges.

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Kaisa Kivipelto, Danske Bank’s senior strategist, says that the deteriorating situation in Ukraine and US inflation figures are pushing down prices.Danske bank

Senior Strategist at Danske Bank Kaisa Kivipelto also says the tension surrounding Ukraine and Russia is reflected in stock prices.

"It contributes to rising oil prices, increases inflationary pressures and market uncertainty," he told Yle.

According to Kivipello, the situation in Ukraine increases market uncertainty, although the real impact on European companies is unlikely to be very significant.

The island recalls that when Russian troops occupied Crimea in 2014, stock prices fell by 3-5 percent worldwide.

"If the situation turns out to be much worse than it was then, we may certainly see stronger fluctuations," he said.

According to Saari, prices are now falling, especially for companies operating in Russia.

Property maintenance company Caverion fell 8.4 percent in the afternoon, despite announcing last month that it would sell its Russian subsidiary.

Nurminen Logistics, which did the same a few years ago, also fell by almost eight per cent. The construction company SRV, which last week sold its stake in the planned Fennovoima nuclear power plant to the project’s designated supplier, the Russian state-owned company Rosatom, fell seven percent.

Industrial heavy series, which have significant business in Russia, such as Kemira and Huhtamaki, saw share prices fall by about six percent.

Kivipelto urged investors to stay calm, so to speak "the timing of major stock market fluctuations means you need to stick to your investment plan."

By late afternoon, the OMX Helsinki Index had fallen 2.6 percent.

Source: The Nordic Page

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