Swedish real estate stocks rally as Fed holds rates steady

Sagax AB

02/11/2023 09:52

** Shares in Swedish real estate companies rise in morning
trade, after the Federal Reserve kept rates unchanged on
Wednesday
    ** Carlsquare analyst Bertil Nilsson says the unchanged U.S.
interest rate, together with falling Euro zone inflation on
Tuesday, is "positive news" for the landlords
    ** "Swedish property companies are highly sensitive to
interest rates, both in terms of their earnings capacity and the
market value of their assets," he adds
    ** STOXX 600-listed Balder  BALDb.ST , Castellum  CAST.ST ,
Sagax  SAGAa.ST , Fabege  FABG.ST  and Wihlborgs  WIHL.ST  all
rise 4.9-7%, while struggling landlord SBB  SBBb.ST  is up 8% at
09:45 GMT
    ** The STOXX 600 real estate index  .SX86P  is up 4.5%

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