Why did Bonava stock fall on 8 October?
Written after the close on
Bonava −4.33%
Bonava fell sharply as its new rental project failed to lift the shares. Over the last five trading days Bonava fell clearly, more than a slightly weaker Stockholm market, and the decline was concentrated in the latest session. Earlier in the week Bonava began construction of 500 rental apartments in Upplands-Bro with a property value of about SEK 1.3 billion, a project already sold to the investor Slättö and booked as started and sold in the third quarter, so the news was largely expected and gave no fresh earnings surprise. A rental project that is pre-sold and financed by the buyer generates little immediate cash for Bonava, and with the Stockholm market soft, investors likely focused on the muted profit impact rather than the volume. Watch whether Bonava reports more production starts or sales of similar pre-sold rental projects in the coming weeks.