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By Matt Phillips
The Danish inventory market has had a year so far.
Inventory indices for the small northern European country easily outperformed the S&P 500, which is up this year, and Japan’s Nikkei 225 and Stoxx Europe indices 600, well into negative territory.
Danish indices, such as omX Copenhagen 25, have risen more than 14% in 2020, or more than 20% if you calculate their decline in dollars. That’s within the success of other market strengths, like the high-tech Nasdaq Composite. , which has risen more than 23% thanks to hard-fought corporations like Amazon and Apple.
What explains such a remarkable performance? Experts say it’s a mixture of several factors:
an effective reaction to the coronavirus crisis (assisted through the country’s social protection network)
a set of well-placed corporations to weather the crisis
a for balanced management
The main contributing factor to the functionality of Danish stocks is a consultation on what corporations are doing and not where they do it: approximately 50% of the market capitalization of Danish stocks is in near-recession-proof pharmaceutical and health corporations: a strong portfolio at the heart of a global pandemic.
“The danish market mix is different from the one seen on the global market and, in a way, has the explanation as to why the Danish market has behaved much better,” said Carsten Jantzen Leth, Danish director of equities.Nordea Asset Management.
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