Swedish real estate stocks fall after c.bank rate hike

Sagax AB

21/09/2023 10:41

** Swedish real estate companies Sagax  SAGAa.ST , Balder
 BALDb.ST , Castellum  CAST.ST , Fabege  FABG.ST , Wihlborgs
 WIHL.ST  and SBB  SBBb.ST  fall 1.8-5.3% after Sweden's Central
Bank (Riksbank) hikes key policy rate
    ** The Riksbank hiked the rate to 4.00% as expected, and
said it might need to do more to bring inflation back to its 2%
target
    ** Carlsquare analyst Bertil Nilsson says that while the
hike was expected, the Fed's and Riksbank's comments suggest the
probability of a rate cut in H1 2024 has decreased
    ** "This should mean that real estate companies' interest
rates on renegotiated bank loans will be somewhat more expensive
... for a longer period of time than the market had previously
anticipated," says Nilsson
    ** The STOXX 600 Real Estate sub-index  .SX86P  is down 1.2%
at 0914 GMT

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))