Bloodletting and returns of 176% in the first half of the year on the growth stock markets point the arrow to particular stocks

Developments on the Nordic stock exchanges and Nordic healthcare

The Nordic growth stock markets and healthcare stocks have really been under pressure in the first six months of the year, but relatively speaking the Danish First North companies have done well and as always there are high jumpers among the healthcare stocks.

The KPNGX index, which tracks all Nordic growth stock markets, has fallen 35% year to date, while First North Denmark (KPFNDK index) fell only 14%, less than the C25 index. Nordic healthcare stocks (small and large cap) fell the most by 40% (KPHC index), as these stocks usually do when the market’s appetite for risk changes. 87% of the 917 companies on the Nordic growth exchanges fell during the first six months of the year, but among those that rose was a Danish company with a return of 176% this year.

Development of the KPNGX, KPFNDK, KPHC and C25 indices since 01.01.2022

Healthcare is this year’s worst performing sector on the stock exchanges

All sectors on the Nordic stock exchanges have fallen this year. Healthcare has fared worst, falling 37%. Healthcare stocks on the emerging markets are mainly biotech companies and thus companies without significant earnings and therefore with high financial risk. However, companies on growth exchanges generally suffer in times of low-risk appetite, and healthcare stocks have thus not significantly underperformed technology stocks, for example. Financial stocks have done best so far – led by Norwegian Sparebank 68 Grader Nord, which is up 12.5% this year.

Sector Return of the KPNGX Index since 01.01.2022

The top 5 stocks on growth charts this year have so far returned 139%-176%

Among the 5 best performing companies on the emerging markets are three Norwegian-listed companies, although Norwegian shares do not represent the largest share in terms of number of shares. Oslo Axess, which includes 5Th Planet Games, is the best-performing Nordic growth stock exchange this year, with a fall of just 5%.

5Th Planet Games A/S (+176.4%) (Nordnet) is a Danish games company that develops online and offline games for various consoles and platforms such as iOS and Facebook. They create games that are marketed globally and collaborate with a number of celebrities to raise awareness of their products.

Skåne-möllan AB (+176.4%) (Nordnet) is a flour and cereal producer. Its main specialization is in TTT products, which include heat treatment of the grain. Customers consist of both small and large players in the food industry, but also private individuals.

Golden Energy Offshore Services AS (+154%) (Nordnet) carries out offshore activities within the oil and gas industry. The company’s fleet consists of a variety of vessels adapted to different purposes. The various services provided include maintenance and subsea work, pipe transport, project management and ROV support.

Lifecare AS (+145.9%) (Nordnet) specializes in diabetes research and development. The products are patented and used as glucose sensors. The microsensors are injected under the skin on the patient’s wrist and further act as a real-time update of the patient’s glucose level.

Hitech & Development Wireless Sweden Holding AB: (+138,5%) (Nordnet) develops equipment for connectivity, positioning and surveillance. The technology is based on real-time location systems (RTLS) and is primarily used for various equipment, tools, equipment and people.

Top 5 best performing stocks on the Nordic emerging markets since 01.01.2022

Pretty good returns from the 5 best First North Denmark stocks

Danish First North stocks have done relatively well this year. This is probably due to the fact that they already started falling last year. In addition, some of the stocks have done really well, including Mdundo and Erria, whose positive price development are based on good performance of the companies.

Erria A/S (+78.3%) (Nordnet) offers shipping, logistics and consulting solutions. Main areas of activity include shipping services, technical management, and repair and monitoring. In addition, the company invests in various marine activities and operations. The operations are global and in addition to the main operations, the company also offers manning services.

Mdundo.com A/S (+61.7%) (Nordnet) operates a music platform featuring a wide range of streamed music from around the world, with a particular niche towards African music. The services are offered via streaming and subscription, where users can create their own library and various music collections.

Shape Robotics (+37.1%) (Nordnet) has developed a modular robotics platform used for educational purposes in programming and innovation. The products are sold under their own brand, mainly ready-made, but users can also build their robots based on their own needs.

Q-Interline A/S (+32.5%) (Nordnet) develops technical analytical solutions and measurement equipment used in process and product analysis. Their customers are in the food, pharmaceutical and agricultural industries.

Odico A/S (+13.2%) (Nordnet) offers specialized complete solutions in cutting and milling, including technical components such as connectors, discs, display panels, 3D solutions and other industrial prototypes.

Top 5 best performing stocks on First North Denmark since 01.01.2022

The 5 best performing healthcare stocks in the Nordics year to date

Even in times of low-risk appetite, there are good cases to be found in biotech, and the half year has been no exception with returns of up 176%. Among the 5 best performing healthcare stocks in the Nordics is Agilit Holding AB. The company went public in 2022, and has been one of the few companies to defy an otherwise depressed IPO market.

Oncopeptides AB (+175.8%) (Nordnet) develops drugs to treat difficult hematological diseases. The company uses its PDC platform to develop peptide-related drugs that selectively deliver cytotoxic drugs to cancer cells. The company has started the commercialization of its first drug and has several drug candidates in development.

Lifecare AS (+145.9%) (Nordnet) specializes in diabetes research and development. The products are patented and used as glucose sensors. The microsensors are injected under the skin on the patient’s wrist and further act as a real-time update of the patient’s glucose level.

Vicore Pharma Holding AB (+89.7%) (Nordnet) conducts research and development of molecules with agnostic action, in the industry called Renin-Angiotensin System (RAS), which affect fluid and salt balance in the body. Vicore Pharma usually enters into licensing agreements with other pharmaceutical partners in the industry and has business activities on a global scale.

Agilit Holding AB (+77.3%) (Nordnet) offers a range of digital services, primarily IT solutions within the healthcare sector. The solutions are used by a number of corporate customers in various sectors. In addition to the main activity, various ancillary services are offered.

Bonesupport Holding AB (+60.5%) (Nordnet) develops and markets injectable bioceramic bone substitutes that convert into the patient’s bone and have the ability to release drugs. The company’s bone substitutes are based on the Cerament technology platform. The company is currently conducting ongoing clinical studies.

Top 5 best performing Nordic healthcare stocks since 01.01.2022

Common features of the best performing companies

The common thread among the best-performing companies is that it has been company-specific news that have been behind each increase. Companies have either upgraded, received positive research results, won large contracts or received high price targets relative to the share price. It has been news that has raised expectations for companies’ future earnings that has pulled companies up. Conversely, it does not appear that individual countries, sectors, currency fluctuations or specific macroeconomic events have driven companies higher – rather, it has been company-specific news that has been the cause of each rise. In addition, there is a preponderance of companies that underperformed in 2021 among the best performers, with half of the companies even falling more than 50%. Nordic healthcare stocks rose 1% overall in 2021, while the top five healthcare stocks fell 43-95% in 2021 (except Agilit Holding AB, which did not list until 2022).

Here’s where investors have really lost this year – the 5 worst performing stocks

Among the best performing stocks in 2022 year to date, a common feature was that many of them underperformed in 2021. Some as much as 95%. Therefore, it might be relevant to look at which stocks have taken a beating year to date in order to find the next price rockets.

GET Group (-97.4%) (Nordnet) is a Nordic company offering energy production and the manufacture and sale of electronic charging products. It operates through its subsidiaries Rock Energy (energy production) and Lightcircle in Norway (charging products). Rock Energy harnesses the earth’s interior to provide electricity, heating and cooling for buildings and facilities.

RhoVac AB (-96.5%) (Nordnet) is a pharmaceutical company. Today the focus is on the development of vaccines for the treatment of metastatic cancer. Immunotherapy treatment is an important part of the business, where the body’s immune system is used to fight and eliminate cancer cells.

Desenio Group AB (-92.5%) (Nordnet) is active in the consumer industry. The company operates a digital platform for trading wall art. The product range is broad and consists of posters, frames and other related accessories.

Partytajm International AB (-92.3%) (Nordnet) is active in e-commerce targeting the retail sector. The company offers its customers festive items and decorations for various holidays such as weddings, parties, christenings, and other celebrations.

Ainmt International AB (-91%) (Nordnet) is a Norwegian company active in the telecommunications industry. The company currently specialises in the development of wireless telecommunications services. The product range is broad and includes primarily technical voice and broadband services, data analytics and other digital products.

Top 5 worst performing stocks on the Nordic emerging markets year to date

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