In the past week, the Nordic impact stocks declined 4% on average. Especially three sectors were severely hit with 4-7% declines following drawdowns in individual stocks. The saying “never catch a falling knife” seems to be true at the moment, but large drawdowns also create potential upside for those willing to take risks. Finally, Opticept Technologies became the best-performing stock of the week following a new order from a juice company in Costa Rica.
NORDIC | IMPACT Helps you to invest more sustainably in the businesses of tomorrow. We track the development of more than 100 Nordic impact companies within multiple impact sectors from small to large cap.
Another challenging week for the impact sectors
In the past week, the Energy Production Equipment & Services, Power2X & Fuel Cells, and Mobility sectors were severely hit with 7-10% declines. As seen before, a few companies can have a massive influence on the sector’s performance; last week was no exception. For the Mobility sector, Move About Group declined 56%, and for the Power2X & Fuel Cells sector, Metacon declined 47%. Additionally, in the Energy Production Equipment & Services sector, Knox Energy Solutions was hit the most with a 61% decrease. On the other hand, the few large drawdowns also mean that the performance of the individual sectors is better than what it seems on the surface.
The average return of impact stocks in the past week was -4%. All sectors continue to be down year-to-date and last twelve months; thus, they are underperforming relative to most of the global indices which have risen. Especially the Energy Production Equipment & Services has faced a tough year being down 42% in the last twelve months. It is a sector comprising 26 stocks, meaning it is not just a few stocks with large drawdowns. It is a sector-wide drawdown. Keep in mind that many of the impact stocks are small caps, which have generally underperformed relative to large caps year-to-date.
The sector returns for the past week, year-to-date, and last twelve months
Top 10 impact stocks of the week
Opticept Technologies AB (27%) is a provider of the food and plant industry with technological solutions that are used to increase the sustainability of various raw materials. The company works with biological processes that provide increased extraction from the raw material, extended shelf life reduced waste, and retained taste, aroma, color, the nutritional content of the end product. The company has a patented technology within PEF (pulsed electric field) and VI (Vacuum Infusion). The company rose following a rental agreement with a juice provider in Costa Rice earning Opticept EUR 20,000. However, the company has already declined 23% today after the announcement of an MSEK 80.4 rights issue.
REC Silicon (22%) is a global supplier of advanced silicon material. The company supplies polysilicon and silicone gases for the solar and electronics industry. Manufacturing is mainly concentrated in North America, where the company has the majority of its production facilities.
Clean Motion AB (21%) business is focused on the development of electric tricycles under its own brand Zbee. The vehicles are specially adapted for urban traffic, with the vision of offering sustainable vehicles. The largest operations are found in the Nordic market, where vehicles are used by both private actors and corporate customers.
The average return last week was 13% among the lowest returns for the top 10 stocks year-to-date.
The 10 best-performing stocks in the past week
TOP 10 IMPACT STOCKS OF THE YEAR
Volue continues to be the best-performing stock year-to-date with a 97% return. The company is about to be acquired at NOK 42, while the current stock price is NOK 41.55. Therefore, it is unlikely the stock will hit 100%. Opticept Technologies is getting very close to the No. 1 spot now standing at 94%. The top 10 list usually stays consistent, but there was one change this week compared to last week. Aega moved in, while Donkey Republic moved out.
The current average return of the top 10 stocks year-to-date is 48%.
The return for the top 10 impact stocks year-to-date
All sectors year-to-date
Waste Management
The waste management sector, characterized by its essential and non-cyclical nature, should present a stable investment opportunity with long-term potential, driven by increasing environmental awareness, regulatory demands, and the growing need for efficient waste disposal and recycling solutions. Despite this, the majority of the stocks have performed negatively this year. Agilyx, Bioextrax, Tomra Systems, and EcoUp have +20% returns year-to-date.
Waste Management – YTD
Energy Production & Storage
The Energy Production and Storage sector offers substantial investment opportunities, as it stands at the forefront of the transition towards renewable energy sources, driven by climate concerns and technological advancements. Year-to-date, 8 stocks have delivered a positive return.
Energy Production & Storage – YTD
Energy Production Equipment & Services
The Energy Production Equipment & Services provides technical equipment and machines to other energy-producing companies such as Ørsted. The sector is to some extent influenced by oil and gas price fluctuations and industry trends. Year-to-date, Volue is by far the best performer. It is eye-catching how all stocks except for two in the sector have delivered a negative return.
Energy Production Equipment & Services – YTD
Power2X & Fuel Cells
The Power-to-X and Fuel Cells sector offers exciting investment opportunities in the evolving landscape of clean and sustainable energy technologies, but investors should also be mindful of the evolving regulatory and competitive landscape in this rapidly advancing field. Everfuel is the only stock with a positive impact on the sector’s performance year-to-date.
Power2X & Fuel Cells – YTD
Food & Beverages
The food and beverages sector is heavily driven by consumer demand and having strong brands is a major advantage. Investors should consider factors such as changing consumer preferences, health and sustainability trends, and global supply chain dynamics to identify promising opportunities. Year to date, 3 stocks have delivered a +30% return.
Food & Beverages – YTD
CO2 & Carbon Capture
The CO2 and Carbon Capture sector presents compelling investment opportunities for companies capturing and removing carbon dioxide from the atmosphere. It is a small sector comprising only 6 stocks, with ChromoGenics and Enersize as the only stocks with a positive return year-to-date.
CO2 & Carbon Capture sector YTD
Mobility
The mobility sector includes among others ride-sharing platforms and the development of electric vehicles to lower emissions and costs for consumers while increasing flexibility. Mobility is the smallest sector we track totaling 5 stocks. Donkey Republic is the best performer in 2024 and the only company in the sector with a positive return.
Mobility YTD
