Panic is spreading

The Oslo Stock exchange saw a loss of NOK 77 billion yesterday.

For a brief period yesterday the Oslo Stock exchange dropped by almost 7 percent, in what appeared to be the worst day in the main index’s history. But the situation stabilized itself in the afternoon, something which helped ease some of the panic felt by the traders. And when the trade ceased for the day the main index was only down by 4,49 percent to 354,06 points.

The drop at the stock exchange still means a loss of NOK 77 billions. At one stage the loss was down to NOK 110 billion.

- This is a dramatic fall. The stock exchange has indeed had a very bad day. The financial crisis that we’re currently in is the worst the world have seen since the 30’s, stock analyst in Landsbanki, Terje Nyborg told E24.

Finance crisis

Yesterday saw big losses all over the world, but none quite as heavy as the loss that the Oslo stock exchange suffered. The major stock exchanges in Europe fell by 2.5 to 3.5 percent. The reason behind the big loss at the Oslo stock exchange was caused by the drop in the international price of oil, which fell by US$ 5 to US$ 92 per barrel.

Selling oil

The market is going through a period of uncertainty, and there are two reasons why oil prices are falling at the moment. Many financial experts believes that the global growth in the economy will slow down, making oil an unattractive investment object. The investors are instead putting their money into ‘safe’ commodities like obligations and gold.

The stocks that saw the biggest drop in value yesterday at the Oslo stock exchange was Sevan Marine (SEVAN) which fell by almost 19 percent to NOK 27.70, and the Tandberg (TAA) which fell by 11 percent to NOK 106.

Source: E24