Foreign investors dump Danske Bank

| 19 February 2009 21:13

It is not just Eastern Europe and Switzerland where problems are popping up. This comes from the Berlingske Tidene, a Danish daily:

Foreigners dump Danske Bank

Danske Bank shares have crashed. Foreign investors are concerned about the Danish economy.

Growing distrust of the Danish economy have caused international investors to shed Danske Bank shares. Danske Bank shares have plummeted 14.6 percent in a week — in heavy trading. The decline is mainly due to a number of major foreign financial houses like Morgan Stanley, Credit Suisse and UBS having sent cascades of sell orders into the market, according to Bloomberg Financial Service, writes daily newspaper Børsen.

- The decline in the Danske Bank is very much a macro story. Investors look with concern to Ireland, Eastern Europe and increasingly also onto the Danish economy. Denmark is in the group of countries with relatively high risk in Europe because of falling house prices, high indebtedness and low savings, says Andreas Håkonsson of UBS.

Since Danske Bank’s shares peaked in February 2007, the shareholders have lost 162 billion. kr. – a negative return of approx. 85 per cent.

Source
Udlandet dumper Danske Bank – Berlingske Tidene

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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