(Bloomberg) -- Danish stocks hit a record high for the first time in more than three years, following similar moves by European and US equity benchmarks this year, as a frenzy around weight-loss drugs fueled a rally in Novo Nordisk A/S and other drugmakers.
The OMX Copenhagen 25 Index gained 1% to 2,036.33 points, surpassing the previous intraday peak of 2,023.445 hit in August 2021.
The index has rallied 12% so far this year, partly as the popularity of weight-loss drugs made Novo one of the most well-owned stocks across global funds. Its shares have rallied about 150% since the end of 2021, and now carry a weight of almost 14% on the OMX 25 index.
Adding to recent Danish stock-market cheer has been logistics firm DSV A/S’s successful campaign to buy Deutsche Bahn AG’s logistics unit Schenker, which has made the company the second-biggest on Copenhagen’s blue-chip index.
Another drugmaker, Zealand Pharma A/S, has also surged this year on optimism that it can develop an obesity drug to compete with Novo’s blockbuster Wegovy. Its shares have gained more than 140% in 2024 alone.
Global equities have managed to cling to record highs as investors count on easing monetary policy to counter growing recession worries. The European Central Bank kicked off a policy easing cycle in June, while traders expect the Federal Reserve to start reducing interest rates next week.
The pan-European Stoxx Europe 600, Germany’s DAX, the UK’s FTSE 100 and the US S&P 500 have set and re-set records multiple times this year.
In Denmark, building insulation group Rockwool A/S and mpox-vaccine maker Bavarian Nordic A/S are also among the biggest gainers on the index in 2024. Gains are heavily concentrated in terms of contribution, with just three stocks — Novo, DSV and drugmaker Novonesis — making up more than 80% of the returns.
--With assistance from Sagarika Jaisinghani.
©2024 Bloomberg L.P.
