“Profit management, currency, and interest rates are the three most important explanatory factors. Especially profits, where many feel they already made a lot of money from the rise in value earlier this year, so it can be a motive for people to take out their profits,” Stock strategist at Swedish bank SEB, Esbjörn Lundevall tells Swedish Radio News.
After ten days of decline on the Stockholm stock exchange, Thursday also began with a stock index of negative 1.7 percent before it rose later in the day.
Explanations behind the decline in value are several. Beyond profit management, a strengthened krona has worsened prospects for Swedish export companies – and the developments on the interest rate market has caused investors to look elsewhere.
Bank SBAB raised interest rates on housing loans today, coupled with a prolonged commitment, aimed at countering recent rises in the market interest rates.