Finnish Investors Are Still Bullish On Nokia StockVW Staff
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) continues to get love from local investors, while the global appetite for its stock wanes. The Finland-based mobile phone maker, and once a leading brand across the globe, is experiencing one of the most difficult times in its entire history.
Nonetheless, local investors have maintained their positive attitude towards the company’s stock, as they continue to accumulate more shares in the mobile phone giant. According to Helsingin Sanomat, in the first half of 2012, local investors acquired approximately 88 million shares of the mobile phone manufacturer. Finnish investors bought over 24% of the company’s shares during the first two quarters of 2012.
The report states that the value of these shares based on an average price stands at approximately 230 million Euros. This is equivalent to 2.36% of the company’s total outstanding shares, excluding the shares held by the company itself.
This news is an indication that the local investors see no fear in the current troubles tormenting Nokia Corporation (NYSE:NOK) (BIT:NOK1V); however, research has shown that investors around the globe to prefer investing in local companies over foreign ones.
Timo Rothovius, a professor of accounting and finance at the University of Vaasa, states, ”In general, investors buy domestic stocks rather than foreign companies’ shares. This is a common phenomenon in various parts of the world. He added, “in the case of Nokia, Finnish investors have more confidence in the increase in the value of Nokia stock than do foreign investors who have sold those shares”.
Nokia Corporation (NYSE:NOK) shares were 7.7% up on Monday and up 7.8% on Tuesday, following the Apple Inc. (NASDAQ:AAPL) against Samsung Electronics Co. Ltd ruling. Many investors think that the court ruling will help Nokia. The recent Apple and Samsung ruling likely will provide some more fair play in the Smartphones and tablets industry going forward.
At the time of this writing, Nokia Corporation (NYSE:NOK) stock was trading at approximately $2.85 per share, down $0.18, or 5.94%, on the New York Stock Exchange.