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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