Russian attack The Helsinki Stock Exchange dives exceptionally deep due to the war, and on Tuesday alone EUR 14 billion a day melted from the stock exchange – these companies are now being sold in a panic

Economic|The Russian attack

Russian The war launched in Ukraine has had exceptionally severe consequences on the Helsinki Stock Exchange.

Money is secondary to enormous human suffering, but if you look at your stock portfolio anyway, you may be disappointed.

Let’s start with the numbers. The market value of the stock exchange has melted 17 billion euros since the beginning of the war. Following the closing of the stock exchange on Wednesday, February 23, the total market value of the shares of the Helsinki Stock Exchange was approximately EUR 314.8 billion, according to the information service Refinitiv.

Tuesday After a decline of around 4.7 per cent, the market value of the stock exchange general index had fallen to EUR 297.4 billion. On Tuesday alone, a total of almost EUR 14 billion disappeared from the valuations of listed companies.

The ongoing diving on the Helsinki Stock Exchange is historically tough. For the last time, the Finnish stock market has seen the same level of uncertainty since the coronary pandemic hit the country in full force in March 2020.

On the big toilet paper hoarding day on Thursday, March 12, the general index of the Helsinki Stock Exchange dived 10.2 percent. The market value of the stock exchange melted a staggering 43.9 billion euros a day.

Russian presidential Vladimir Putin The war launched by the Finnish government has devastated listed companies in the Finnish state in particular. For example, less than EUR 3.2 billion of Fortum’s market capitalization has been lost in just a few days, or almost a fifth of the company’s value. The state owns about 51 percent of Fortum. The market value describes the total value of the company’s shares.

About 1.8 billion euros, or just over 6.6 percent, of the value of the liquid has melted since the start of the war. This is the latest blow to the company, which in January 2021 was by far the most valuable company in Finland, valued at almost 50 billion. Neste’s market capitalization is now just under 24.3 billion. The state owns about 44 percent of Neste.

Fortumia and Finnair has been a relatively bigger victim than Neste. One-third of the value of the state-owned company, 56 percent, has disappeared since the start of the war. Finnair’s market capitalization is so small that, converted into euros, its market value has clearly lost less than the value of Fortum and Neste, ie “only” just under EUR 280 million.

Only Nokian Tires, whose share price has collapsed as a result of the war in Russia, has suffered more from the entire crisis on the Helsinki Stock Exchange than Finnair.

The value of the company has lost 1.5 billion, or about 44 percent, as of Wednesday, February 23rd. It’s no wonder, as about 80 percent of the company’s tire production came from Russia last year – a country that the entire Western world is currently trying to isolate.

The stock market in view of the severe reactions and, in particular, the problems of state-owned companies, it is not very surprising that two separate events will be held on Wednesday to discuss the situation. First, at 3 pm, the Central Chamber of Commerce, the Ministry for Foreign Affairs and the Bank of Finland will hold an event to discuss Russia’s sanctions and their effects on companies.

An hour later, the Minister of Corporate Governance Tytti Tuppurainen (sd) hold a briefing on “current issues in corporate governance”. Based on the lessons learned from the interest rate spring, it would not be impossible for Finnair to prepare new support packages at a rapid pace.

Below you can see how the market values ​​of Helsinki’s listed companies have developed since the start of the war compared to Finnair.

But what does the rumble of the stock market and the sharp fall in market values ​​mean, for example, from the point of view of an investor who cares about his savings?

Not necessarily anything if the shares are not forced to be sold. If, on the other hand, the investor has a need for cash, there may be a discount sale ahead. If you take the risk, there may also be a place to shop ahead.

Helsinki the stock exchange index is now remarkably low, as the last time the index was lower on christmas eve in 2020. many may therefore consider a solution that worked in the interest rate pit, ie going into stock trading.

However, when leaving for this game, you must also be prepared to suffer losses. The outlook is now exceptionally narrow due to Putin’s military action, high inflation and plans to raise central bank policy rates.