Live Markets: Swedish election results may be positive for nation's banks
LIVE MARKETS-Swedish election results may be positive for nation's banks Adds new blog entry
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SWEDISH ELECTION RESULTS MAY BE POSITIVE FOR NATION'S BANKS
While we still won't find out the full results from the Swedish election until later in the week, preliminary results from Sunday's vote project a narrow lead for the centre-left opposition over the right-wing ruling bloc.
As part of its manifesto, the centre-left Social Democrats, which look to have won the most seats, had proposed a potential rise in bank taxes and to make government-owned bank SBAB more competitive.
But given the closeness of the results, formation of a government is likely to take time, and Barclays believes it could ease some worries for Sweden's banks.
"Election headlines may continue to impact Swedish Banks' share prices," Barclays says.
On bank taxes, they add, "We believe this election result could make this more difficult to implement."
Overall, Barclays sees most upside for SEB SEBa.ST and SHB SHBa.ST.
(Samuel Indyk)
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