- Nokia outperforms European technology shares index on hopes of mergers and acquisitions.
- Nokia dropped only 0.4% on Thursday versus a 2.3% decline in SX8P.
- U.S Attorney General encourages wider investment in Nokia and Ericsson to counter Huawei's dominance.
Amidst a declining financial market that remains weighed by the recent outbreak of Coronavirus in China and its rapid spread across the borders, Nokia was reported to have kept its ground in the stock market on Thursday. As per the experts, stability in the share prices of the leading telecom network equipment manufacturer in Finland was attributed to a recent Bloomberg’s report that highlighted the company’s plans of divesting a few of its assets while exploring options for new, more profitable mergers.
Nokia Dropped Only 0.4% Versus 2.3% Decline In SX8P On Thursday
Nokia was reported to have declined only 0.4% on Thursday while a much greater 2.3% drop was noted in SX8P (European technology shares index). At the time of writing, Nokia is exchanging hands at 3.69 Euro per share in the stock market that marks just over a 5% increase in 2020 so far. Nokia’s performance in 2019, however, was reported largely downbeat with an annual loss of over 40%. The stock opened at around 5 Euro per share in January 2019 but closed the year significantly lower at 3.30 Euro in December. Nokia’s market capitalization is currently at €20.88 billion.
Nokia is currently competing with Ericsson and Huawei to get on board the global rollout of the new 5G telecommunication networks. With the U.S working committedly towards placing a global ban on Huawei from 5G networks as it brands the company an espionage tool for China, Nokia’s prospects for improving its position in the competition for 5G network equipment manufacturer is likely to improve.
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U.S Attorney General Says Widening Investments In Nokia May Help Counter Huawei’s Dominance
The 5G network is expected to play a central role in military communications and driverless vehicles.
Earlier in February, William Barr commented in his capacity as the U.S Attorney General that it should be in the best interest of the U.S allies to widen investments in providers like Ericsson and Nokia in order to put an end to Huawei’s dominance in the upcoming 5G technology. The statement further fueled the speculations for Nokia’s mergers and acquisitions in the telecom sector in the months to come.