Friday , January 22 2021

Managers see green wave in the stock market: – Almost a little frantic – Oslo Børs – Stock Exchange and Finance

Companies listed in Oslo Børs, as the company of classification Tomra, the solar company Scatec Solar, Fred. Olsen's renewable business in Bonheur, hydrogen company Nel and seawater purification company Scanship saw their shares rise between 40 and 171 percent in the last year.

Stock market launches add an image of a larger trend, according to investment director Pernille Skarstein Christensen at C WorldWide Asset Management.

– What worries us is that the green trend has increased over the Oslo Stock Exchange in the last twelve months. We believe this is a very important trend for us as long-term investors, she tells E24.

Investment director Robert Næss of Nordea sees similar trends.

Investment director Pernille Skarstein Christensen at C WorldWide Asset Management.
Investment director Pernille Skarstein Christensen at C WorldWide Asset Management.

– In the early years there were more conversations about this, and then there were some green and renewable investments that often gave a rather modest and weak return. But that has changed in recent years and perhaps especially last year has been almost a little hectic in the stock market.

E24 (+): Shortboom in Norwegian – this way bets can end in a squat

– The new normal

Christensen was last week on Hegnar Media investor day, where she talked about, among other things, the green trend in the stock market. At the same event, investor Øystein Stray predicted the collapse of Spetalen by green shares, because he believes that the gains can not defend prices.

Christensen, on the other hand, believes that there are big changes going on.

"It's a change we've seen in the last twelve months, not just in Norway but also in Europe. In the last three years, green stocks have not outperformed others, but in the last 12 months they have. So it remains to be seen whether this is the new standard. We mean that.

– Climate and the environment are gaining more space on the political agenda. The actions went well because it started to be profitable to be a sustainable company, she says.

Read too: Heavy fall for Elkem

The charts show the stock price of Tomra (TOM), Scanship (SSHIP), Scatec Solar (SSO), Bonheur (BON) and Nel last year.
The charts show the stock price of Tomra (TOM), Scanship (SSHIP), Scatec Solar (SSO), Bonheur (BON) and Nel last year.

Want to win from "the next big one"

Investments that fit the principles of environment, sustainability and corporate governance have received the Environmental, Social and Governance (ESG) seal in English.

The subject has been widely discussed in the international financial press. Here, at home, small private investors have launched, according to investment economist Mads Johannesen of Nordnet.

He says the web broker saw large stock purchases such as Tomra, Solar Scatec, Nel and Scanship among its customers.

– There is a greater focus on the environment and climate in all sectors. Customers want to make money at the next store. Whether it's wind, sun or hydrogen, it's all about knowing, but I think that's the basis of interest, says Johannesen.

Read too: Action manager Nel: – It took a while

Vegan hamburgers and sausages

Næss highlights the recently listed Vegan citizen initiative Beyond Meat as the most extreme global example of investor sustainability interest. From the listing price of $ 25 in early May, the share more than doubled to $ 141.

He also finds examples on the background of Nordea, which invested in the British bakery chain Greggs, which came with a variant of vegan sausage.

– sold very well. Shares have gone from P / L 14 to 24 (The ratio of the stock price to the company's annual result, journ.anm.) And it has risen above 70% this year simply because it is hot.

At home, the Nordea fund bought Quantafuel, a company committed to converting plastic waste into energy. The company is listed on the OTC list, where the price has risen close to 70% this year.

– For some specific companies like Beyond Meat and maybe Tomra, I mean the course took a lot of the same. But usually not in relation to more green actions and ESG, says Næss.

– For you have many companies that have not been paid to be good, and so can get a payment for it. But some actions, those that are all convinced that they are green and have already received a high price, for many of them, I think the race runs for the investor, he says.

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