Results rush in Oslo Poor’s: – The market awaits – E24

The stage is set for the results season at the Oslo Stock Exchange. A number of heavyweights will release quarterly numbers in the coming week.

The focus is on next week’s results season, and a number of companies will be presenting indoor and outdoor numbers. In the US, we also get a report on the state of the US economy ahead of the interest rate decision at the end of the month.

Nordnet investment economist Mads Johannesen sees a change of focus in the future.

– The market is highly anticipated these days due to somewhat lower liquidity and lack of macro news in the summer months.

– From focusing on the macro economy previously, the market is now turning its focus towards the upcoming quarterly season as everyone wonders about the companies’ future prospects, he told E24.

Oil companies are on fire

Among the oil companies, Aker BP and Vår Energi will both present their quarterly results on Thursday morning.

Aker BP shared a production update on Wednesday that showed the company produced 480,700 barrels of oil equivalent per day in the second quarter of the year. The volume was a new record for the company and increased production at the Johan Sverdrup field contributed to the increase.

Johansen at Nordnet sees a favorable exchange rate setting for the heavyweight Oslo Bors.

– Despite the weakness in the price of oil so far this year, the exchange rate of the dollar is still high. This makes Aker BP very attractive to Norwegian investors, as the company has income in dollars and expenses in NOK.

At the same time, he’s excited about what the oil company says about the future.

The guidance going forward is particularly interesting now with demand somewhat weak and the macro numbers failing.

ABG Sundal Collier’s Head of Analysis, John Olaisen, Aker BP and Vår Energi are sector favorites with price targets of NOK 40 and NOK 350 respectively. It points to the strong cash flow and exciting exploration portfolios of both companies.

Faith in the financial sector

Norway’s largest bank DNB presents its numbers on Wednesday. Nordea Chief Investment Officer Robert Ness recently stated that the banking and financial sector is the only sector that is expected to perform better this year compared to last year.

– In banks, higher interest rates contribute positively due to higher deposit margins. At the same time, the increased interest rates gave a higher return on the banks’ private funds, he told E24.

Ness noted that DNB, which has a capital of about NOK 250 billion, is benefiting from the fact that the interbank rate is now 4 percent, compared to 1.3 percent at the same time last year.

Overall for the quarter, this gives an increase in the current yield of DNB by 2.7 percent, which is equivalent to NOK 1.7 billion.

Nordnet’s Mads Johansen also expects strong DNB numbers.

Strong profits, small losses and a good interest margin are expected. Going forward, it will be interesting to hear about activity in the housing market and whether loan losses start to show. Whether for private or commercial property, says Johansen.

The financial calendar is fully packed in Oslo Børs

Also in the consumer segment, many companies will be providing numbers.

The XXL Sports Series presents its Friday numbers. The stock has been hit hard by the stock market and is down more than 50 percent so far this year.

The company posted pre-tax profit minus 284 million in the first quarter of the year, and Johansen sees no signs of improvement.

– XXL has been struggling for a long time, and with so many releases and negative earnings announcements, I’m afraid these numbers will remain very weak.

Food giant Orkla will also release its quarterly numbers next Friday. Johansen highlights the weakening of the krone exchange rate, which is affecting the stock.

Orkla is the biggest loser with twice the Norwegian krone and twice the purchasing power among the Norwegian population. The market is hoping for sales growth, but unfortunately I think Orkla will disappoint in the second quarter due to currency losses and weaker trading patterns.

Notice from the Federal Reserve Bank

Last week, the US economy was in focus. Figures for the US labor market showed high employment growth. On Friday, the Non-Farm Payrolls report showed that 209,000 new non-farm jobs were created in the US, which was slightly less than previously expected.

Also this week we get news from the USA. Wednesday is coming feed itfeed itUS Federal Reserve With the “Beige Book” report, an overview of how the central bank perceives the state of the US economy now. This report is published eight times a year and always two weeks before the interest rate committee meeting.

The report examines economic activity in the country’s twelve federal districts, and is based on interviews with company managers, economists, and banks in various regions. The purpose is to inform members of changes in finances since the last meeting.

In the US, broad expectations in the market are that interest rates will be raised at the next rate meeting at the end of July, according to the Fedwatch CME tool.

Results season also continues in the USA and soft drink giant PepsiCO will be providing the numbers on Thursday. On Friday, bank stocks will take center stage on Wall Street when JPMorgan Chase, Wells Fargo and Citigroup deliver their numbers.