Danish stocks have experienced significant losses this year, making them among the worst-performing globally. The MSCI Denmark index, comprising 15 of Denmark’s largest companies, has plummeted by 17.5 percent in value when calculated in dollars since the beginning of the year.

Only Lebanon, Serbia, and Argentina have exhibited worse stock market performance this year.

Novo Nordisk, the most valuable company in the index with a market value exceeding one trillion kroner, has been a primary factor in the decline. The company’s stock value has decreased by 43 percent this year, significantly impacting the overall index.

Tine Choi Danielsen, chief strategist at PFA, explains that Novo Nordisk’s substantial weight within the Danish index means its movements heavily influence the index’s performance and foreign investors’ perceptions of Danish stocks.

The decline in Novo Nordisk’s share price has led to a tendency for foreign investors to sell off their Danish stock holdings, even those of other large and globally exposed companies. Previously, a rising Novo Nordisk share price had the opposite effect.

Despite the challenges in the Danish stock market, PFA’s overall equity investments remain relatively diversified, with the Danish portfolio representing a small portion of the total. The company has also actively adjusted its investments in individual Danish companies.

Positive developments in other stock markets, such as Europe (up 11.5 percent) and Japan (up 6.2 percent), have helped offset the losses in Danish stocks. Although US stocks experienced a decline in April due to tariff announcements, they have since recovered, resulting in a loss of only 2.1 percent for the year.

As a result, a typical PFA customer has received a return of 4.5 percent on their pension savings this year.