Nokia told investors it couldn’t account for a rapid jump in the value of its shares, as speculation mounts the company’s equity could be the latest target for a group of campaigners trying to inflict losses on Wall Street hedge funds.
In a stock market statement released after the close of markets yesterday (27 January), the vendor said it was not “aware of any material, undisclosed corporate developments or material change in its business or affairs that has not been publicly disclosed that would account for the recent increase in the market price or trading volume of its shares”.
The company’s equity jumped to €4.73 per share in early trading in the Helsinki Stock Exchange today (28 January), compared with €3.26 per share when the market opened on 25 January.
The latest domestic rise followed rapid gains and spikes in buying activity of its US-listed shares during its trading day, which also came after gains across the week.
Increased interest in Nokia’s stock comes as small investors organised on Reddit forum Wall Street Bets (WSB) continue to heavily buy shares in companies often deemed old-fashioned tech-related businesses.
Targets so far include US video game retailer Game Stop and BlackBerry, Financial Times reported, with most of the shares subject to short selling activity by Wall Street hedge funds. The result of the increased share price is significant losses for funds betting against it.
Companies at the forefront of WSB activity, however, booked much steeper gains than Nokia already has, although several business publications including Forbes have speculated gains by the Finnish vendor are related to activity on the forum.Subscribe to our daily newsletter Back