Nokia outperforms European technology shares index on hopes of mergers and acquisitions

Nokia outperforms European technology shares index on hopes of mergers and acquisitions

  • 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.

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.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.