Fondspartner News

Norwegian offshore oil and shipping stocks are a good buy for investors who have time to wait to realize profits, according to analysts. Four out of six analysts said the sectors were especially attractive for share price growth, but warned that third-quarter profits were unlikely to be pleasing. "There is already some focus on weak earnings for offshore companies and I expect the (stock) market to continue focusing on that," said one analyst. "I don't feel the third quarter is very interesting. It is based on an oil market, which is hopefully behind us," he said, adding that he expects activity in the oil sector to pick up some time in the first half 2000.

Many Norwegian companies remain under-priced and are likely targets for foreign predators, analysts said. Despite gains in the Total index to peaks this week at around 1,300 points -- the highest so far this year -- analysts said Norwegian companies remain cheap and are natural prey for foreign bidders. "There are still crown jewels on the Oslo bourse, especially in the industrial sector," said Morten Stundstoe, chief analyst in Fondspartner. "The Oslo bourse is 10 to 15 percent under the level we believe is fair value," said another analyst. Foreign interest in Norwegian firms has picked up recently. Last Monday, Swedish constructor NCC launched a bid for Selmer.