NOKIANEWS - News of the Nokia

Nokia shares price increase on the Helsinki stock exchange

02. 01. 2024 Tuesday / By: Robert Denes / Business / Exact time: BST / Print this page

N okia issued a negative profit warning over the weekend, with the company predicting profits will fall below guidance for 2023 as license renewal talks drag on into 2024. The profit warning was not a surprise, as the schedule has already become tight and the transition of one-time revenues to 2024 is not dramatic in itself, but the transition keeps uncertainty about the timing of revenue streams high. In addition, there were negative comments about the market in the profit warning, but expectations for the rest of the year already showed weak development.

The Helsinki stock exchange rewarded it with a price increase at the start of the first trading day of the year at the weekend after the Finnish company Nokia, which manufactures network equipment, issued a profit warning. The OMXHPI general index of the stock exchange was up by about 1.3 percent after the first trading hour. By 2 p.m., the rise had subsided. At that time, the index rose by approximately 0.8 percent.

The OMXHPI showed a fall of around 6.4 percent last year, but at the end of the year, the Helsinki Stock Exchange started a strong upward trend. The overall index is up about 13.4 percent since October 23. The company that manufactures network equipment announced on the night of Friday to Saturday that it will not reach its profitability goal set for 2023.

Nokia's share gained 1.9 percent around noon, i.e. it paid 3.11 euros after about two hours of trading. In a profit warning issued on Saturday, Nokia predicted that last year's results would fall below previous forecasts because the company expected license renewal negotiations to continue this year. In a press release, Nokia wrote that the company considers protecting the value of the patent portfolio more important than reaching a solution by a certain deadline. According to Nokia's estimates, instead of last year's result, the development process will benefit the company's 2024 result.

On Tuesday, however, the stock opened to a clear rise. The stock was up more than 1.7 percent at 11 a.m. At 2 p.m., the increase moderated to 1.3 percent. As of 2 p.m. Tuesday, Mandatum was the biggest gainer, up 3.7 percent, Metsä Board was up about 3.6 percent, and Telia was up about 2.6 percent. For example, the Dax index of the Frankfurt stock exchange rose by 1 percent on Tuesday morning, but at 2 p.m. the index was down 0.1 percent. The broad European Stoxx Europe 600 also opened with an increase of more than 0.7 percent, but in the afternoon the index was practically at the level of Friday's closing price. The results of companies listed on the American stock exchange are expected to rise by 12 percent. It promises to be a good year for the stock market, as the American stock markets show the direction of the whole world.

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