Market Mayhem in Helsinki: Stora Enso CEO Change and Earnings Warnings Send Stocks into the Red
The Helsinki Stock Exchange (HEX) closed in the red on September 20, 2023, with the OMX Helsinki 25 index falling by 1.2%. The decline was led by Stora Enso, which fell by 3.5% after the company announced that it was changing its CEO. Other notable decliners included Nokia (-2.5%) and UPM-Kymmene (-2.0%).
The decline in the HEX was also due to a number of earnings warnings from Finnish companies. For example, Valmet warned that its profits would be below expectations in the third quarter, while Wärtsilä warned that its profits would be down for the full year.
The decline in the HEX is a sign of the growing concerns about the global economy. The war in Ukraine, rising inflation, and supply chain disruptions are all weighing on the global economy and are likely to continue to impact the stock markets in the coming months.
Stora Enso CEO change
Stora Enso announced on September 20, 2023 that it was changing its CEO. The current CEO, Annica Bresky, will step down at the end of the year and will be replaced by Karl-Henrik Sundström.
Sundström is currently the CEO of UPM-Kymmene, a Finnish forest products company. He has over 30 years of experience in the forest products industry and is well-respected in the industry.
The change in CEO at Stora Enso is likely to lead to some changes in the company’s strategy. Sundström is known for his focus on innovation and efficiency. He is also likely to focus on expanding Stora Enso’s presence in emerging markets.
Earnings warnings from Finnish companies
A number of Finnish companies issued earnings warnings on September 20, 2023. Valmet warned that its profits would be below expectations in the third quarter, while Wärtsilä warned that its profits would be down for the full year.
Valmet is a Finnish engineering company that manufactures machinery for the pulp and paper industry. The company has been impacted by the war in Ukraine and rising inflation.
Wärtsilä is a Finnish company that manufactures marine engines and power generation equipment. The company has been impacted by the global slowdown in economic activity.
The earnings warnings from Finnish companies are a sign of the growing challenges facing the Finnish economy. The war in Ukraine, rising inflation, and supply chain disruptions are all impacting Finnish companies and are likely to continue to do so in the coming months.
Impact of the decline in the HEX on the Finnish economy
The decline in the HEX is a sign of the growing concerns about the global economy. The war in Ukraine, rising inflation, and supply chain disruptions are all weighing on the global economy and are likely to continue to impact the stock markets in the coming months.
The decline in the HEX is also likely to have a negative impact on the Finnish economy. The stock market is a source of capital for Finnish companies and a decline in the stock market will make it more difficult for Finnish companies to raise capital.
The decline in the HEX is also likely to lead to a decline in consumer confidence. Consumer confidence is an important driver of economic growth and a decline in consumer confidence is likely to lead to a slowdown in economic growth.
The decline in the HEX is a sign of the growing concerns about the global economy and the Finnish economy. The war in Ukraine, rising inflation, and supply chain disruptions are all weighing on the global and Finnish economies and are likely to continue to do so in the coming months.
The decline in the HEX is likely to have a negative impact on the Finnish economy by making it more difficult for Finnish companies to raise capital and by leading to a decline in consumer confidence.