While Danish wind turbine manufacturer Vestas has been under heavy pressure from investors in recent years, Tuesday was one of the more fun days for the company's stock.
Here it rose by a whopping 9.2 percent and was thus a major contributor to securing a small plus of just over 0.1 percent to the overall C25 stock index. The index consists of the 25 most traded stocks on the Copenhagen Stock Exchange measured by turnover and also includes companies such as Maersk, Novo Nordisk and Danske Bank.
The latter three all pulled downwards on Tuesday. Of the three, Maersk's A and B shares were the worst affected, falling 2.7 and 3.2 percent respectively.
Part of the explanation for Vestas' rise may be that a Republican bill to abolish a tax rebate for the green sector looks milder than expected. This is according to Jacob Pedersen, head of equity research at Sydbank.
- It (the legislative package, ed.) does not appear to be the massacre in the onshore wind market in the US that investors have been nervous about. This is good news for Vestas' earning capacity, he says.
- The bill does not just remove the support, but instead reduces it over a few years.
After taking office as US president, Donald Trump has attacked the spread of wind turbines on American soil. During his inauguration speech in January, he expressed his desire to instead focus on oil and gas extraction, which is a clear departure from former President Joe Biden's climate-focused policy.
The so-called Inflation Reduction Act (IRA) was put into place during the Biden administration. It is a legislative package with support schemes for, among other things, the expansion of wind power. Both Vestas and Ørsted have benefited from the legislative package.
Trump has also said that he intends to roll back a ban on new gas and oil drilling in large American ocean areas.
/ritzau/
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