Sky-high futures expectations for the salmon market.
With a share price clocked in on Wednesday afternoon at NOK 180.55, Marine Harvest has surged to its all-time highest level. The company’s worth on the stock exchange is now €8.4bn.
The share price has improved 38 percent since early February.
While salmon prices have plummeted during summer, Marine Harvest has in contrast climbed to lofty heights.
Source: Infront Web Trader
Salmon goliath Marine Harvest is not alone. Several other major salmon producers are also fast approaching their best market values yet.
If we are to go by the normal seasonal pattern for salmon prices, there is nothing to indicate that salmon prices will strengthen to any great extent in the immediate future. As a rule, spot prices flatten out at some stage during autumn.
The gap between sky-high share prices and salmon prices, which are now close to this year’s lowest level at just over NOK 50 per kilo (€5.2), is remarkable. However, shares are priced according to expectations. Not on the current immediate image, but on future expectations – and optimism about the future on behalf of the sector is awesome.
Share strategist Paul Harper of DNB Markets has also noticed a shift towards so-called value shares, in his assessment of the pricing.
“What’s happening now is a sector rotation on a global basis moving out of tech and growth shares and into value shares. In Norway the seafood sector is harvesting the benefits of this, which is clearly apparent from the current upward surge in the seafood index,” Paul Harper told TDN Direkt.