Norway’s main stock exchange has moved in the opposite direction of European and U.S. markets since the war in Ukraine began. That’s the assessment from Storebrand CEO Jan Tore Klovland, who warns a potential peace deal could trigger a sharp drop in Oslo Børs listings.
Klovland points to the war’s impact on global energy and financial markets as a key factor. While major European and U.S. exchanges have rebounded strongly, Oslo Børs has remained subdued. Investors have favored stability over growth, he says, with Norwegian equities lagging behind their peers.
The CEO highlights that Norway’s economy, heavily tied to oil and gas, has not benefited from the same tailwinds as other regions. European markets have seen gains from reduced energy dependence on Russia, while Oslo Børs has struggled to keep pace. Klovland notes that a sudden peace agreement could disrupt the current cautious investor sentiment.
He warns that if a deal is reached quickly, markets may overreact by selling off Norwegian assets. The fear is that peace could lead to lower energy prices, reducing profits for Norwegian energy firms. This would likely push Oslo Børs downward, he explains, as energy stocks make up a large share of the index.
Klovland’s remarks come as analysts debate whether Norway’s market is prepared for a post-war shift. Some argue that the country’s reliance on fossil fuels leaves it vulnerable to sudden policy or price changes. Others believe the market will stabilize once the war’s economic effects become clearer.
Source: e24.no