The new movement restrictions proposed by the Board of Directors affect several Finnish listed companies, the OP Bank Group estimates.
Domestic market focus is a prerequisite for the fact that mobility restrictions can be expected to have a significant effect on the company’s business at all, says the OP Bank Group’s chief analyst Antti Saari news agency for Startel.
OP lists Kesko and Tokmanni in the retail sector, Atria and HK Scan in the food industry, and the insurance group Sampo as potential benefits for movement restrictions.
According to Saari, what unites these companies is that they provide the basic needs that people need in all circumstances.
In the case of Sampo, on the other hand, the benefits could be that the reduction in movement can reduce injuries and claims.
The potential sufferers are a mixed group
OP names the department store chain Stockmann, the pet supply chain Musti & Mirri, the design and textile company Marimekko and Kamux, which sells used cars, as potential victims of mobility restrictions, as visits to specialty stores may decrease due to mobility restrictions.
According to OP, other potential victims are Citycon, which invests in shopping centers, the communications groups Sanoma and Alma Media, and the telecom operator Telia, as the effects of reduced transactions in specialty stores may be reflected in their business.
Citycon leases real estate to companies and media companies are dependent on advertising revenue.
OP also lists the health companies Terveystalo and Pihlajalinna and the pharmaceutical company Oriola as victims.
– They may face a temporarily lower demand for their services if people postpone urgent care. On the other hand, we know that as coronary activity tightens, other seasonal flu will also decrease, which may reduce transactions with doctors and reduce the demand for medicines, Saari says.
Banks may also experience losses as mobility decreases if payment transactions slow down and credit loss risks increase, OP explains.
The effects are transient
Saari estimates that the effects of movement restrictions will be reflected in the prices of listed companies listed by OP at most as a small vibration.
Anyway, this is a temporary effect on the business of most companies, Saari says.
– If a company is already weak, such as Stockmann, the effects of movement restrictions can be a degree more far-reaching, he points out.
Source site www.is.fi