Bogdan Tudorache

Aggressive political action in the first half of the year by central banks and governments has led to a strong return to the stock markets and a general belief that the world will overcome the Covid crisis with less damage than in the 2008 financial crisis. The stocks fully recovered its global losses during the first wave of the pandemic, despite global corporate revenues collapsing by 56%, says Peter Garnry, Head of Equity Strategy, Saxo Bank.

Thus, the most traded shares in Romania, through Saxo, were Tesla, Microsoft, Apple, Amazon and Nvidia, in the third quarter of the year. Globally, the most traded shares were Tesla (+92 points), Apple (+28 points), Amazon (+12 points), Microsoft (+4 points) and Nio (+175 points).

“Expectations are currently high in the third quarter, with estimates suggesting a 106% increase in quarterly earnings, plus a new all-time high in the fourth quarter of 2021. If the corporate sector offers this recovery, the global market capital will be valued at 19.3x gains in 2021. It is not an unreasonable valuation, given the alternatives in the bond market,” Garnry added.

Thus, “Elon Musk can celebrate another impressive quarter in which the shares have increased by almost 100%. Even though Battery Day did not reveal the revolutionary technology that many Tesla investors hoped for, the shares continued to grow explosively, despite the fact that the pandemic hit production and consumers on a global scale.”

At the same time, “Tesla could be the star for the EV market, but Nio works wonders in the shadows. The Chinese car company has a well-developed manufacturing and delivery system and dominates the Chinese market, with plans to enter the European car market. But, despite an astonishing 175% increase in shares in Q3, many analysts see signs of a potential bubble on the electric vehicle market,” also said Saxo Bank’s analyst.