The Helsinki Stock Exchange ended the first half of the year with disappointing results, as the market struggled to gain traction and overall performance was lackluster compared to other international exchanges. One of the factors contributing to this weak performance was the lack of significant artificial intelligence companies on the Finnish stock market. Investors are looking towards AI companies for potential growth opportunities, but the Helsinki Stock Exchange has not been able to deliver in that area.
However, there were some bright spots for the exchange. The indices of medium and small companies performed better than those of large companies, indicating a shift in investment preferences. Portfolio managers believe that interest rate cuts could stimulate demand for domestic consumer companies, potentially boosting their performance in the future. Despite recent trends showing a decline in earnings forecasts for Finnish listed companies, portfolio managers hope that interest rate cuts will boost demand for domestic companies and drive growth in the market.
With international markets outperforming the Helsinki Stock Exchange, investors are looking for signs of improvement in the second half of the year. While historically known as the dividend stock exchange, recent trends have shown a decline in earnings forecasts for Finnish listed companies. Profit forecasts have continued to decrease, impacting overall sentiment towards the market. In order to improve its performance, central bank policy rate cuts are seen as crucial by portfolio managers who hope that interest rate cuts will boost demand for domestic companies and drive growth in the market.
