July has been characterized by a large number of quarterly reports and the majority of both Swedish and global companies have now reported. Over half of the companies exceeded analysts’ forecasts for profit and sales, with U.S. companies, in particular, showing robust earnings.
The Stockholm Stock Exchange closed the month with gains, whereas the Copenhagen Stock Exchange underperformed, largely due to Novo Nordisk’s decline amidst competition concerns in the obesity drug market. In the U.S., the month was marked by volatility in the presidential election campaign, a slightly weaker performance in the tech sector and political discourse on expanding export bans in the semiconductor industry. However, falling interest rates bolstered small and mid-cap stocks. The S&P 500 was up approximately 1%, while Nasdaq decreased by 0.75%.
Regarding our Swedish and Nordic holdings, the logistics company DSV benefited from the unrest in the Red Sea, which has driven up freight prices. DSV’s quarterly report revealed higher than expected revenue, resulting in positive share price performance in July. The Swedish companies Indutrade and Lifco also reported strong quarterly results. Indutrade’s earnings and sales surpassed expectations, driven by significant demand in Life Sciences. The company also indicated a positive outlook for the year due to its ongoing acquisition agenda.
Among global companies, the Indian consulting firm Infosys benefited from a strong Indian stock market and increased corporate investments. Infosys reported operating profits above expectations. Also, the private equity firm Blackstone posted a solid monthly return, citing good investment activity and benefits from lower interest rates in its real estate portfolio. Similarly, Sherwin Williams reported strong results, noting increased interest in new housing and renovation projects.
The NE Our World fund saw particular gains from strong performance in the healthcare sector. For instance, our holding in the U.S. diagnostics company Danaher performed well following better than expected operating results. Additionally, Amgen announced they will present the results of a phase 3 study in a severe autoimmune muscle disease in the second half of the year.
