Mika Heikkilä: This is the most attractive reason to own shares on the Helsinki Stock Exchange

The development of the Helsinki stock exchange has been subdued this year as well compared to stock exchanges in the Nordic countries, Europe and the United States.

“Pulling into stone”, described the Market Naraati program filmed at the Investor 2024 event at the Helsinki Fair Center of Proprius Partners portfolio manager Mika Heikkilä.

According to Heikkilä, there have been disappointments in small companies in particular this year, and in general, the comparison with the US stock market, which has done well, makes the atmosphere on the Helsinki Stock Exchange seem weak.

“The neighbor has done better this year, we are a little more boring and steady.”

However, there are two sides to the matter. Heikkilä urges investors to be aware of one thing if they are thinking about forgetting the Helsinki Stock Exchange and focusing their attention on the United States.

“The most attractive reason to own Helsinki Stock Exchange shares at the moment is the valuation,” says Heikkilä.

Actian portfolio manager Paavo Ahonen should look ahead.

“Even though this is another disappointing year behind us, I don’t think the potential has disappeared here. We have many companies whose profit potential is much higher than what they are currently doing,” says Ahonen.

Year of purchase

Investor and author Karo Hämäläinen states that the year ending was a good buying year on the Helsinki Stock Exchange.

“I have found a lot to buy. It’s exceptional when you’ve had to think a little because of appreciation for a long time. Now I feel that there are interesting shares in both large companies and small companies, and now you can get them even cheaper than what I have bought before,” says Hämäläinen.

Ahonen states that even though the Helsinki Stock Exchange as a whole has more or less the same readings as a year ago, there is a lot of variation within the index.

“Some have developed well, such as Nokia and some machine shops, but there are also examples from the other direction, when In this and forests,” says Ahonen.

More than half of Neste’s share price has melted this year.

Hämäläinen reveals that he went to buy Neste’s shares too early, although in a way he could see how the shares were doing.

“Usually when bad news comes, it tends to accumulate. Maybe this was a reminder of that. Fortunately, I started building the position slowly,” says Hämäläinen.

“When it comes to increasing your stock position, especially in a falling course, you should go in small batches”, Hämäläinen reiterates this year’s most important lessons.