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The Swedish stock market has risen by more than 30% this year, causing alarm at the top of one of the country’s most active investment firms. The rapid gains raise problems, according to the chief executive officer of Bure Equity AB, which has a market valuation of $3.5 billion. “over whether the stock market has become excessively overvalued.”
The guilt lies with the considerable economic assistance measures that are exacerbating the problem, writes Henrik Blomquist in Bure’s interim report. “the prices of many assets to increase sharply.”
Bure and its Swedish rivals, such as Kinnevik AB and Investor AB, have seen billions of dollars wiped off their combined market capitalizations as a result of analyst concerns over inflated net asset value premiums.
Bure declared a net asset value of 323.80 Swedish kronor ($36.94) per share as of Aug. 18. The company owns shares in Cavotec SA, Mycronic AB, and Vitrolife AB, among others. On Thursday, shares plummeted as much as 3.7 percent, trading at 402.20 kronor at 9:38 a.m. in Stockholm.