The Oslo Stock Exchange was battered this week like other stock markets around the world, following Wednesday’s dives in the US and Asia. One major Norwegian investor advised against doing any “bottom fishing” just yet.
“Rising uncertainty tied to trade wars, rising interest rates and rising oil prices can accelerate the fall,” Jan Petter Sissener told state broadcaster NRK after the Oslo market fell on Thursday’s opening by 3.6 percent. After a rough morning, stocks recovered but the Oslo exchange still closed down 2.6 percent from the day before.
It was the biggest daily decline in more than two years, with many of the so-called “locomotives” on the Oslo exchange ending well below Wednesday’s close. The oil sector that’s been recovering was not spared: State oil company Equinor (formerly Statoil) fell 3.4 percent, while Subsea 7 and Aker declined by 3.9 and 4 percent respectively. Hydro, already troubled by problems and production cuts at its huge aluminum plant in Brazil, fell 2.1 percent while Norway’s biggest bank DNB was down 2.3 percent. Yara, a leading fertilizer company, was down around 4 percent.
Sissener, who’s been active in the market for years, said he worries trade conflicts set off by US President Donald Trump will hurt economies that otherwise have been growing and can drag down the global economy at the same time. He thinks the decline will continue, and end with the market down 10 percent.
“I wouldn’t run out and buy shares today,” Sissener told NRK.
Leif-Rune Rein of Nordea Asset Management had predicted the Oslo Stock Exchange would fall 3-4 percent, so the actual decline was on the low end of his scale. Some view it as an “expected correction” after months of rising share values.