According to E24’s comments, the new stock analysis has a significant impact on Euronext stock prices, with an average increase of 5%. In the most extreme case, the stock rose by up to 52%.
-Geir Holen, head of department from Finanstilsynet to E24 on Thursday, said that, depending on the situation, inventory analysis can be used as internal information.
After Finanstilsynet this week, the price-driven role of stock analysis has become the focus of attention
Arctic Securities was strongly criticized for insufficient routine procedures related to securities transactions conducted by employees themselves.
The regulatory report states that the former head of research, Morten Nystrøm, bought shares in these companies shortly before publishing a positive analysis of the companies.
One of these companies is Quantafuel. When Nystrøm released its analysis report, its stock price rose by more than 7%, which included purchase recommendations and target prices, which were almost three times the market price.
His successor, Alexander Jost, head of the Arctic Research Department, also bought the stock before the analysis was published.
Quantafuel is listed on the unregulated Euronext Growth exchange, which has experienced tremendous growth in the past year. The same violence is the occasional price effect of these stocks on the day the broker releases the new analysis.
E24’s review of a total of 110 analyses published last year showed that in 93% of the cases, the proportion increased from the beginning, and in 80% of the days, the proportion ended.
For seven of these stocks, this is a price increase of more than 20%, and there is no other relevant news.
The most extreme case is the analysis of Ocean Sun by the brokerage firm Fearnley Securities in November last year.
The stock rose more than 87% that day, and finally closed with a 35% increase.
On the same day that SEB released its first analysis of Aker Carbon Capture in October, the stock closed up 52%.
-Obviously, this is a very large price increase, NHH Finance Professor Karin Thorburn said of E24.
She also said that it is difficult to explain the information that emerged in the E24 investigation.