HCA Market Close 27.10.22: Featuring Danske Bank and Risma Systems

HCA Market Close 27.10.22 – Danske Bank reports its Q3 2022 earnings, signalling a near conclusion for its Estonia matters. RISMA Systems maintains its guidance following a Q3 trading statement.

Market Movements:
Denmark: OMX:C25 (-0.30%) ; Sweden: OMX:S30 (-0.09%) ; Norway: OBX:OSL (+1.37%) ; S&P 500 (-0.20%) ; Nasdaq (+0.90%); Stoxx 600 (+1.40%)


Market Drivers:
Markets fluctuated today as investors try to get a read on corporate earnings.

The Nasdaq was down today, led lower by Meta, which published dire earnings after the bell yesterday, plunging 25% on the news. The advertising revenue from Facebook is often referred to as a bellwether for the economy was down, suggesting the economy is weakening. However, conversely, Caterpillar Inc. (also considered a bellwether) shares gained on better-than-expected earnings. Markets will be looking ahead to earnings from Amazon and Apple, which are scheduled for after market close today.

Markets also reacted to the ECB’s rate hike of 75 basis points, which doubled the ECB’s base rate to 1.5%. However, ECB President Christine Lagarde followed the move with a dovish press conference, suggesting that a “substantial” part of tightening is done, as Europe looks towards a recession.

Snacks from the HCA Platform:

Shares at Danske Bank ended the day with a gain of 12% after the bank chose to pre-release its Q3 2022 report, which was originally planned for tomorrow. The main story was a DKKbn 14 additional provision related to the Estonia matter bringing the total provision up to DKKbn 15,5 and indicating that a settlement or a fine of that amount could be nearing. An amount somewhat higher than the DKKbn 10 that has been speculated on in the financial press. Further, Danske Bank took a write-down on Danica Pension of DKKbn 1.6 due to lower returns and higher interest rates. The underlying Q3 2022 was, however, a little better than expected – however, not to the magnitude we have seen from some of the Nordic peers. But today’s share price relief is foremost linked to the market eyeing an end to the Estonian matters that has been a drag on the bank for several years now and has put a hefty discount on the share. This could come to an end now and create a new chapter for Danske Bank.

RISMA Systems reported its quarterly update for Q3 2022 earlier today. The SaaS company closed Q3 with a total ARR of DKK 20.5 million, corresponding to a growth rate of 41%. RISMA maintained its recent ARR guidance for 2022 of DKK 23-26 million (50-70% growth). EBITDA guidance for 2022 was also kept in the range DKK -23 million and DKK -21 million. Read more here (in Danish): https://lnkd.in/euAZCctM
The share traded flat today.
 
Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:25