Swedish real estate stocks fall as new rate hikes in sight

Fastighets AB Balder

09/03/2023 13:26

** Shares in Swedish property companies fall after the
Deputy Riksbank Governor Aino Bunge said the Swedish central
bank is still considering a rate hike in April, citing high
inflation
    ** The bank still sees a hike of 25 or 50 bp as its main
scenario, Bunge says
    ** Stocks of SBB  SBBb.ST , Fabege  FABG.ST , Castellum
 CAST.ST  and Balder  BALDb.ST  are down 4-5%, hovering near the
bottom of STOXX 600  .STOXX 
    ** Higher interest rates would result in increased interest
costs for real estate companies and potentially higher interest
yields on properties    
    ** Earlier in the morning, the Swedish Statistics Office
announced a 2% rise in the country's GDP in January, a read
J.P.Morgan analysts consider as a "surprising rebound"
    ** That said, the broker expects the data to "serve as
hawkish input for the Riksbank meeting in April"

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))