Scandinavian industrial sector most shorted - Data Explorers
26 October 2011 London
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Short sellers have not been as aggressive in Scandinavia as in other markets, yet industrial sector stocks have seen significant short interest relative to their regional peers.
After analysing securities lending data flow across Denmark, Finland, Norway and Sweden, Data Explorers found that short sellers have focused their attentions on sectors with exposure to global economic troubles, despite the Nordic economies' resilience so far.
"On a macro level, we find that that capital goods shares feature most prominently on our screen. There are currently 19 Scandinavian capital goods companies with a short interest greater than two per cent. The next most shorted sectors was energy with 11 stocks. Capital goods shares have also seen the greatest increase in short interest in the last three months," notes the analytics firm.
Demand in this sector, companies that manufacture machinery used for engineering and construction industries for example, is sensitive to economic conditions and, as a consequence, share prices rise during a boom or conversely drop when the economy contracts.
Looking at the overall level of short interest across the region, Data Explorers found it holding steady in the last three months at a relatively low 1.1 per cent of shares outstanding. Short sellers have avoided the banks, consumer durable, food retailing, insurance and utilities sectors, with no companies in these sectors having recorded short interest greater than two per cent.
After analysing securities lending data flow across Denmark, Finland, Norway and Sweden, Data Explorers found that short sellers have focused their attentions on sectors with exposure to global economic troubles, despite the Nordic economies' resilience so far.
"On a macro level, we find that that capital goods shares feature most prominently on our screen. There are currently 19 Scandinavian capital goods companies with a short interest greater than two per cent. The next most shorted sectors was energy with 11 stocks. Capital goods shares have also seen the greatest increase in short interest in the last three months," notes the analytics firm.
Demand in this sector, companies that manufacture machinery used for engineering and construction industries for example, is sensitive to economic conditions and, as a consequence, share prices rise during a boom or conversely drop when the economy contracts.
Looking at the overall level of short interest across the region, Data Explorers found it holding steady in the last three months at a relatively low 1.1 per cent of shares outstanding. Short sellers have avoided the banks, consumer durable, food retailing, insurance and utilities sectors, with no companies in these sectors having recorded short interest greater than two per cent.
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