Icelandic Stocks Fall Amid Tariff Uncertainty
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Loading... - Anastasia Gabris
- 20 Mar 2025
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The Icelandic stock market experienced a significant downturn, with the benchmark index dropping nearly 4% in a rare all-red day, as all listed companies saw declines. This market turbulence was largely a reaction to former President Donald Trump’s announcement of higher tariffs on imports from China, Mexico, and Canada, which sent shockwaves through global financial markets.
All companies listed on the main market of Nasdaq Iceland were affected, with dual-listed companies and airlines facing the brunt of the impact. A dual-listed company (DLC) operates as one business under a legal agreement while maintaining separate names, stock listings, and legal statuses. The announcement of increased tariffs led to widespread selling, resulting in a notable decline across the board.
The benchmark index, known as the OMX Iceland 15, fell by 3.95% to close at 2,747.71 points, marking its lowest level in three months. This index tracks the performance of the largest and most actively traded companies on the exchange.
Among the companies affected, Oculis, a global biopharmaceutical firm focused on innovative treatments for eye diseases, recorded the steepest decline, with shares dropping by 7.3%. Oculis is dual-listed in both Iceland and the United States. Another dual-listed company, Alvotech, saw its shares fall by 6.31%. The third dual-listed company, JBT Marel, also experienced a decline, albeit to a lesser extent, with a drop of 4.89% in trading worth ISK 10 million (approximately $73,000 / €68,000).
Icelandair, the national airline, recorded the third-largest drop of the day, falling by 6.3% in trades exceeding ISK 100 million (around $730,000 / €680,000). The other airline, Play, saw a slightly smaller decline of 6.08%, although it had minimal trading activity. Additionally, shares in Greenland-based mining company Amaroq dropped by 5.65%.
The sharp decline in the Icelandic stock market reflects the broader uncertainty in global markets following the announcement of higher tariffs. As investors react to these developments, the performance of Icelandic companies, particularly those that are dual-listed or in sensitive sectors like aviation, will be closely monitored in the coming days. The market's response underscores the interconnectedness of global economies and the potential impact of political decisions on local markets.
