The month of September surprised positively, defying the usual seasonal patterns, with most global markets posting slight gains. Several central banks made anticipated rate cuts, including the Fed, which delivered its long-awaited 0.5 percentage point reduction. Inflation expectations have moderated, contributing to a more positive risk sentiment in the market. The S&P 500 rose by around 2%, while the tech-heavy Nasdaq Composite gained just under 3%.
In China, positive news emerged with the announcement of monetary and fiscal stimulus measures aimed at reversing the country’s negative trend. The market reacted positively, boosting overall optimism. In the Nordic region, market performance was weighed down by the Copenhagen Stock Exchange, OMXC20, largely due to the index-heavy Novo Nordisk, which experienced a decline. In Sweden, the Riksbank continued as planned, delivering another interest rate cut of 0.25 percentage points at the end of the month. Market expectations now point to at least two more cuts before year-end. The Swedish indices, OMXS30 and the broader OMXSPI, both rose by around 1%.
In our portfolio, we saw strong performance from several companies. Electric vehicle manufacturer Tesla led the gains with a 22% rise, recovering well from its decline earlier in the summer. Optimism around strong Q3 deliveries has been a key driver behind the stock’s resurgence.
Japanese industrial company Ebara also performed strongly, surging 18% during the month. Ebara continues to benefit from robust performance in the semiconductor sector, which remains strong due to the ongoing AI boom. As a leading supplier to this market, with expertise in vacuum technology and separation systems, Ebara is well-positioned to capitalize on growing demand.
Danish logistics company DSV stood out in the face of a declining Copenhagen market, posting an impressive 15% gain. DSV successfully acquired the German company Schenker after a heated bidding war with American private equity firm CVC.
Mining and construction equipment manufacturer Epiroc had a solid month as well, rising 11%, supported by higher metal prices and key stimulus from the Chinese central bank. With substantial exposure to China, Epiroc has benefited from the improved sentiment in the region.
Best regards,
Nordic Equities
General risk information:
There is no guarantee that an investment in the Nordic Equities’ funds will not result in a loss, even at times when financial markets are otherwise performing favorably. Past performance is no guarantee of future return. The value of the capital invested in the Nordic Equities’ funds may increase or decrease and investors in the Nordic Equities’ funds cannot be certain of recovering all their invested capital. The fund’s full and half-year statements are available free of charge on request, please contact us at mail@nordeq.se or at +46 8 545 045 00.