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Feeble opening trade for Facebook paper – It looks like increase caution and a wait and see attitute
Monday, 21 May 2012
There was no rush for the Scandinavians to buy Facebook shares when
they began trading in Europe on Monday morning. Shortly before 11am
Swedish time, just a few hundred Facebook stocks have been sold in the
whole Nordic region.
The huge interest in Facebook’s IPO
attracted several large banks to create securities based on the stock.
The idea was that they should be an easy way for European retail
investors to buy into the social networking giant, without having to
manoeuvre through the Nasdaq stock market, OMX.
But when trading started on Monday morning, there was cool interest. In
the Nordic countries Facebook Certificates are traded on NGM and at 11
o'clock, only two were observed to have been noted, one of Nkr2,000 in
Norway and one of about Skr3,500 in Stockholm.
"Probably it depends on the trade in Facebook shares in the U.S. which
is currently not running yet. It is always a greater risk of doing
business in the certificate when the underlying stock is not yet
traded, "said Bengt Tynell on NGM's market.
Another explanation could be that Facebook shares on Friday rose by
meagre 0.61 percent during the first trading day, despite all the hype
and massive support purchases from the banking giant Morgan Stanley. So
therefore it is still a wait and see at this stage.
By Scancomark.se Team
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