PTC proposals affect Vestas shares
The Vestas share promptly plummeted on Friday, following the Trump government's tax proposal, which promises tax cuts, but at the same time proposes to change the rules for the PTC renewable energy scheme. It affects Vestas, which has the US as its largest market.
"Uncertainty is never good, and there is a great deal of uncertainty about Vestas' biggest market," Ole Kjær Jensen, Sydbank's Deputy Director, told Ritzau Finans.
The big drop in stocks, which was around 7,8 percent at 14.15, pulls down the entire Danish elite index, OMX C20 Cap, so today's trade looks to take a hit.
At 14.15, the price of the Vestas share had declined by almost 45,00 DKK, where it is fairly stable, after having dropped by almost 10 percent after yesterday's closing prices.
According to the Barclays financial house, the tax proposal may be of importance to Vestas as it plans to lower the value of the PTC support scheme by approximately one third, while at the same time changing the way in which the aid scheme is managed.
The President of the United States, Donald Trump, presented a long-awaited tax package on Thursday. This is the proposal that causes investors to drop the price of the Vestas shares. This happens even if the proposal is far from being adopted.
Although Trump's Republican Party has a majority in both chambers of the US Parliament, it has not been particularly successful for the President so far to have adopted quite a few of the bills he has so far submitted,because they have violated the United States constitution or the laws of each state.
Source: The editors of Maritime Denmark