Column: OMXS30 Analysis week 12
”OMXS30 moves higher”
Last week Nasdaq OMX traded slightly higher, with an increasing volume. Despite this, last week OMXS30 dropped -0.2 percent, and ended the week at 1584.97. Since the beginning of the year, the stock index has gained +4.5 percent. Considering dividends, OMXS30 has gained +5.2 percent.
The stock index dropped mainly because Nordea was trading excluding dividend, which pushed the index lower with about 10 points, roughly -0.6 percent. The upcoming two months’ stock dividends included within OMXS30, will push the index lower with about 38 points, roughly -2.4 percent. OMXS30 is a price index, and does not exclude dividends.
Stock index like the OMXSPI take dividends into consideration, by adding the dividend when the index calculation is done. A dividend should also theoretically have a neutral effect on the valuation of a stock. The stock should drop as much as the dividend is, since the dividend is only moved from one account to another of the stock holder. Practically the stock usually does not drop as much as the dividend, mainly due to the annual general meeting, held the day before the stock is trading excluding the dividend, where the company and the board usually can present its positive view of the company’s future.
Bull & Bear-certifikat
Risker
This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.
The products are not capital protected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.