Swedish real state rises ahead of US CPI data

Sagax AB

10/08/2023 13:20

** Swedish real estate stocks rise ahead of July's U.S. CPI
data and local analysts note that anticipated modest inflation
and stable rates could create a favourable environment for the
sector
    ** Stockholm-listed Balder  BALDb.ST , Fabege FABG.ST, SBB
 SBBb.ST , Wallenstam  WALLb.ST , Sagax  SAGAb.ST , Castellum
 CAST.ST  and Wihlborgs  WIHL.ST  rise 2%-6% in afternoon trade 
    ** Nordic peer Norwegian Entra  ENTRA.OL  and Finnish Kojamo
 KOJAMO.HE  are up 2.6% and 3.2%, respectively 
    ** Carlsquare analyst Bertil Nilsson flags that expectations
of modest U.S. inflation in July and stable interest rates
positively impact Swedish property companies 
    ** "Yesterday, the interest rate market in the U.S. saw only
minor movements. This is good news for property companies, like
Balder", he says
    ** High debt burdens, rising interest rates and a wilting
economy have created a tricky environment for Sweden's
commercial property companies, with several cut to junk by
rating agencies
    ** Balder shares rise to the top of European 600 index
 .STOXX   

 (Reporting By Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))