Finnish industrials premium at 14year low
NATO membership has reduced Russia risk
OMX Helsinki 25 down 10 in 2023 vs 8 rally for STOXX 600

Nov 29 Reuters Finland39;s beatendown stock market may offer value for investors next year, money managers say, with a potential global economic recovery set to lift the cyclical stocks that dominate the index and NATO membership easing perceived Russia risks.

Finnish stocks are Europe39;s biggest laggards this year, as risks stemming from tensions with Russia and concerns over China39;s stuttering recovery have hurt its exporters. In addition, big funds have favoured global mega caps over smaller firms, which make up a large portion of the Nordic country39;s equity landscape.

The top 25 stocks in Helsinki are worth a combined 150 billion. Europe39;s most valuable firm Novo Nordisk, alone, is worth three times that. The OMX Helsinki 25 has lost 10 this year, versus the STOXX 60039;s 8 rally.

Tomas Hildebrandt, senior portfolio manager at Nordic fund manager EVLI, sees Finnish stocks as cheaply valued and likely to benefit from an economic recovery he expects could gain traction in 2024.

I don39;t see any structural issues at the moment that would really spin the global economy into a deeper recession. Hence, I think that the bottom will be reached at some point, said Hilderbrant, who is overweight Finland, but underweight Europe.

We might be early in our call, but with the outlook of a shallow recession, markets will start to…