Essays on pricing of risk and international linkage of Russian stock market

Last two decades have seen a rapid change in the global economic and financial situation; the economic conditions in many small and large underdeveloped countries started to improve and they became recognized as emerging markets. This led to growth in the amounts of global investments in these countries, partly spurred by expectations of higher returns, favorable risk-return opportunities, and better diversification alternatives to global investors. This process, however, has not been without problems and it has emphasized the need for more information on these markets. In particular, the liberalization of financial markets around the world, globalization of trade and companies, recent formation of economic and regional blocks, and the rapid development of underdeveloped countries during the last two decades have brought a major challenge to the financial world and researchers alike. This doctoral dissertation studies one of the largest emerging markets, namely Russia. The motivation why the Russian equity market is worth investigating includes, among other factors, its sheer size, rapid and robust economic growth since the turn of the millennium, future prospect for international investors, and a number of important major financial reforms implemented since the early 1990s. Another interesting feature of the Russian economy, which gives motivation to study Russian market, is Russia’s 1998 financial crisis, considered as one of the worst crisis in recent times, affecting both developed and developing economies. Therefore, special attention has been paid to Russia’s 1998 financial crisis throughout this dissertation. This thesis covers the period from the birth of the modern Russian financial markets to the present day, Special attention is given to the international linkage and the 1998 financial crisis. This study first identifies the risks associated with Russian market and then deals with their pricing issues. Finally some insights about portfolio construction within Russian market are presented. The first research paper of this dissertation considers the linkage of the Russian equity market to the world equity market by examining the international transmission of the Russia’s 1998 financial crisis utilizing the GARCH-BEKK model proposed by Engle and Kroner. Empirical results shows evidence of direct linkage between the Russian equity market and the world market both in regards of returns and volatility. However, the weakness of the linkage suggests that the Russian equity market was only partially integrated into the world market, even though the contagion can be clearly seen during the time of the crisis period. The second and the third paper, co-authored with Mika Vaihekoski, investigate whether global, local and currency risks are priced in the Russian stock market from a US investors’ point of view. Furthermore, the dynamics of these sources of risk are studied, i.e., whether the prices of the global and local risk factors are constant or time-varying over time. We utilize the multivariate GARCH-M framework of De Santis and Gérard (1998). Similar to them we find price of global market risk to be time-varying. Currency risk also found to be priced and highly time varying in the Russian market. Moreover, our results suggest that the Russian market is partially segmented and local risk is also priced in the market. The model also implies that the biggest impact on the US market risk premium is coming from the world risk component whereas the Russian risk premium is on average caused mostly by the local and currency components. The purpose of the fourth paper is to look at the relationship between the stock and the bond market of Russia. The objective is to examine whether the correlations between two classes of assets are time varying by using multivariate conditional volatility models. The Constant Conditional Correlation model by Bollerslev (1990), the Dynamic Conditional Correlation model by Engle (2002), and an asymmetric version of the Dynamic Conditional Correlation model by Cappiello et al. (2006) are used in the analysis. The empirical results do not support the assumption of constant conditional correlation and there was clear evidence of time varying correlations between the Russian stocks and bond market and both asset markets exhibit positive asymmetries. The implications of the results in this dissertation are useful for both companies and international investors who are interested in investing in Russia. Our results give useful insights to those involved in minimising or managing financial risk exposures, such as, portfolio managers, international investors, risk analysts and financial researchers. When portfolio managers aim to optimize the risk-return relationship, the results indicate that at least in the case of Russia, one should account for the local market as well as currency risk when calculating the key inputs for the optimization. In addition, the pricing of exchange rate risk implies that exchange rate exposure is partly non-diversifiable and investors are compensated for bearing the risk. Likewise, international transmission of stock market volatility can profoundly influence corporate capital budgeting decisions, investors’ investment decisions, and other business cycle variables. Finally, the weak integration of the Russian market and low correlations between Russian stock and bond market offers good opportunities to the international investors to diversify their portfolios.

The Effect of Operational Disturbances on Reliability and Operation Time Distribution of NCmachine Tools in FMS

This thesis concentrates on studying the operational disturbance behavior of machine tools integrated into FMS. Operational disturbances are short term failures of machine tools which are especially disruptive to unattended or unmanned operation of FMS. The main objective was to examine the effect of operational disturbances on reliability and operation time distribution for machine tools. The theoretical part of the thesis covers the fimdamentals of FMS relating to the subject of this study. The concept of FMS, its benefits and operator's role in FMS operation are reviewed. The importance of reliability is presented. The terms describing the operation time of machine tools are formed by adopting standards and references. The concept of failure and indicators describing reliability and operational performance for machine tools in FMSs are presented. The empirical part of the thesis describes the research methodology which is a combination of automated (ADC) and manual data collection. By using this methodology it is possible to have a complete view of the operation time distribution for studied machine tools. Data collection was carried out in four FMSs consisting of a total of 17 machine tools. Each FMS's basic features and the signals of ADC are described. The indicators describing the reliability and operation time distribution of machine tools were calculated according to collected data. The results showed that operational disturbances have a significant influence on machine tool reliability and operational performance. On average, an operational disturbance occurs every 8,6 hours of operation time and has a down time of 0,53 hours. Operational disturbances cause a 9,4% loss in operation time which is twice the amount of losses caused by technical failures (4,3%). Operational disturbances have a decreasing influence on the utilization rate. A poor operational disturbance behavior decreases the utilization rate. It was found that the features of a part family to be machined and the method technology related to it are defining the operational disturbance behavior of the machine tool. Main causes for operational disturbances were related to material quality variations, tool maintenance, NC program errors, ATC and machine tool control. Operator's role was emphasized. It was found that failure recording activity of the operators correlates with the utilization rate. The more precisely the operators record the failure, the higher is the utilization rate. Also the FMS organizations which record failures more precisely have fewer operational disturbances.

Commodity Price Driven Risk Management from Viewpoint of High Grade Steel Alloys

The study of price risk management concerning high grade steel alloys and their components was conducted. This study was focused in metal commodities, of which nickel, chrome and molybdenum were in a central role. Also possible hedging instruments and strategies for referred metals were studied. In the literature part main themes are price formation of Ni, Cr and Mo, the functioning of metal exchanges and main hedging instruments for metal commodities. This section also covers how micro and macro variables may affect metal prices from the viewpoint of short as well as longer time period. The experimental part consists of three sections. In the first part, multiple regression model with seven explanatory variables was constructed to describe price behavior of nickel. Results were compared after this with information created with comparable simple regression model. Additionally, long time mean price reversion of nickel was studied. In the second part, theoretical price of CF8M alloy was studied by using nickel, ferro-chrome and ferro-molybdenum as explanatory variables. In the last section, cross hedging possibilities for illiquid FeCr -metal was studied with five LME futures. Also this section covers new information concerning possible forthcoming molybdenum future contracts as well. The results of this study confirm, that linear regression models which are based on the assumption of market rationality, are not able to reliably describe price development of metals at issue. Models fulfilling assumptions for linear regression may though include useful information of statistical significant variables which have effect on metal prices. According to the experimental part, short futures were found to incorporate the most accurate information concerning the price movements in the future. However, not even 3M futures were able to predict turning point in the market before the faced slump. Cross hedging seemed to be very doubtful risk management strategy for illiquid metals, because correlations coefficients were found to be very sensitive for the chosen time span.

Organisaation toimintamallin muutoksen toteuttaminen

Työn tavoitteena oli selvittää mitä erityspiirteitä esiintyy siirryttäessä kompetenssipohjaiseen organisaatiorakenteeseen ja toimintaan sekä kuvata muutoksen toteutusprosessi. Tutkimus pitää sisällään kaksi keskeisintä ja tärkeää käsitettä: osaamisrakenteen muutos ja sen johtaminen. Empiirinen osa on toteutettu kyselylomakkeen avulla, joka lähetettiin valituille Case-yrityksen operatiivisesta johtamisesta vastuussa oleville esimiehille. Organisaation muutoksen toteuttaminen on erittäin vaativa toimenpide, joka vaikuttaa organisaation jokaiseen henkilöön ja heidän päivittäisiin työtehtäviinsä. Muutoksen toteuttaminen vaatii paljon aikaa, mutta ennen kaikkea kärsivällisyyttä. Mitä isommasta organisaatiosta on kysymys, sitä vaikeampaa toteuttaminen on. Muutokseen vaikuttavat oman henkilöstön lisäksi organisaation ulkoiset tekijät, kuten asiakkaat, markkinat sekä erilaiset osaamiseen ja teknologiaan liittyvät uudenlaiset osaamisvaatimukset. Tärkein tekijä muutoksen onnistumisen kannalta on tiedostaa koko organisaation tasolla, miksi muutokseen lähdetään ja mitkä ovat muutoksen tavoitteet. Tavoitellaanko muutoksella pientä hienosäätöä organisaation toiminnassa vai onko taustalla kokonaan uuden toimintamallin käyttöönotto uudenlaisia strategisia linjauksia myöten.

Market of biomass fuels in Finland : IEA Bioenergy Task 40 and EUBIONET III - Country report of Finland 2009

This study considered the current situation of solid and liquid biomass fuels in Finland. The fact that industry consumes more than half of the total primary energy, widely applied combined heat and power production and a high share of solid biomass fuels in the total energy consumption are specific to the Finnish energy system. Wood is the most important source of bioenergy in Finland, representing 20% of the total energy consumption in 2007. Almost 80% of the woodbased energy is recovered from industrial by-products and residues. As a member of the European Union, Finland has committed itself to the Union’s climate and energy targets, such as reducing its overall emissions of green house gases to at least 20% below 1990 levels by 2020, and increasing the share of renewable energy in the gross final consumption. The renewable energy target approved for Finland is 38%. The present National Climate and Energy Strategy was introduced in November 2008. The strategy covers climate and energy policy measures up to 2020, and in brief thereafter, up to 2050. In recent years, the actual emissions have exceeded the Kyoto commitment and the trend of emissions is on the increase. In 2007, the share of renewable energy in the gross final energy consumption was approximately 25% (360 PJ). Without new energy policy measures, the final consumption of renewable energy would increase to 380 PJ, which would be approximately only 31% of the final energy consumption. In addition, green house gas emissions would exceed the 1990 levels by 20%. Meeting the targets will need the adoption of more active energy policy measures in coming years. The international trade of biomass fuels has a substantial importance for the utilisation of bioenergy in Finland. In 2007, the total international trading of solid and liquid biomass fuels was approximately 77 PJ, of which import was 62 PJ. Most of the import is indirect and takes place within the forest industry’s raw wood imports. In 2007, as much as 21% of wood energy was based on foreign-origin wood. Wood pellets and tall oil form the majority of export streams of biomass fuels. The indirect import of wood fuels peaked in 2006 to 61 PJ. The foreseeable decline in raw wood import to Finland will decrease the indirect import of wood fuels. In 2004– 2007, the direct trade of solid and liquid biomass fuels has been on a moderate growth path. In 2007, the import of palm oil and export of bio-diesel emerged, as a large, 170 000 t/yr biodiesel plant came into operation in Porvoo.

Business opportunities in power sector of Ukraine : focus small-scale hydro and wind power sectors

In the last few years, the Ukrainian investment market has constantly shown strong performance and significant growth. This is primarily due to the investment attractiveness of Ukraine. From the perspective of investments in energy sector, Ukraine can be described as a country providing significant number of opportunities to multiply invested funds. But there are numbers of risks which hamper large investments. The work objective was to discover opportunities in small-scale hydropower and wind power sectors of Ukraine and more importantly to prove economic expediency of such investments. Thesis covers major of issues, concerning entering the Ukrainian power market as a foreign investor. It provides basic information about the structure of power market, the state of renewables sector in Ukraine, development of power sector in the regions, functioning of Wholesale Electricity Market, formation of electricity prices, possibilities for implementing joint Implementation mechanism, while the most attention, nevertheless, is concentrated on the opportunities in small-scale hydro and wind power sectors. Theoretical part of the study disclosed that Crimea peninsula has perfect wind conditions and could be a prospective area for wind project development. Investment analysis revealed that project profits will be excellent if green tariff for renewable energy is adopted. By the moment uncertainties about green law adoption bring additional risk to the projects and complicate any investment decision.

Moottoripyörän rungon muuntelun valvontakriteerit muutoskatsastuksessa

Muutoskatsastusta koskeva lainsäädäntö aiheuttaa tulkintavaikeuksia ja rajoitteita moottoripyöräharrastajille ja alan toimijoille. Nykyinen asetus edellyttää tarvittaessa asiantuntijaselvitystä rakennemuutoksen lujuudesta ja hitsaustyöstä. Moottoripyörän geometria on laissa rajattu akselivälin ja emäputken kulman osalta. Moottoripyörien runkoja valmistetaan hitsaamalla seostamattomista teräksistä ja lämpökäsiteltävistä alumiini- ja terässeoksista. Runkojen muuntelu suoritetaan myös yleisesti hitsaamalla. Turvallisuuden kannalta tärkeiltä hitsausliitoksilta vaaditaan hyvää laatua, joka saavutetaan oikeilla hitsausparametreilla ja -suorituksella. Vaatimukset seostamattomalle teräkselle voidaan täyttää pätevöityneen hitsaajan toimesta. Lämpökäsiteltävät seokset vaativat lisäksi jälkilämpökäsittelyn, mikä edelleen vaikeuttaa runkojen hitsausta. Hitsien laadun merkitystä moottoripyörän rungossa tutkittiin soveltamalla rajoitetun vahingon periaatetta. Vauriotapauksena mallinnettiin satunnaisen rungon hitsausliitoksen murtuminen. Eri kuormitustilanteissa elementtimenetelmää hyödyntäen todettiin chopper-tyyppisten moottoripyörien runkojen olevan osittain vauriosietoisia ja havaittiin kriittiset hitsausliitokset emä- ja vaakaputken alueilla. Moottoripyörien runkojen kriittisiä hitsausliitoksia tarkasteltiin väsymisen kannalta. Soveltamalla tehollista lovijännitystä, vertailtiin emäputken hitsausliitosten väsymiskestävyyttä oletetulla kuormituksella. Tulosten perusteella muunneltu moottoripyörän runko voi olla alkuperäisrunkoa kestävämpi tai heikompi. Moottoripyörän akseliväli tai emäputken kulma eivät määrää kestävyyttä, vaan rakenteen yksityiskohtainen suunnittelu. Kriittisten liitosten väsymiskestävyyksissä havaittiin merkittäviä eroja eri mallien välillä.

Design and manufacture of a microdistillation column

Aim of this thesis was to design and manufacture a microdistillation column. The literature review part of this thesis covers stainless steels, material processing and basics about engineering design and distillation. The main focus, however, is on the experimental part. Experimental part is divided into five distinct sections: First part is where the device is introduced and separated into three parts. Secondly the device is designed part by part. It consists mostly of detail problem solving, since the first drawings had already been drawn and the critical dimensions decided. Third part is the manufacture, which was not fully completed since the final assembly was left out of this thesis. Fourth part is the test welding for the device, and its analysis. Finally some ideas for further studies are presented. The main goal of this thesis was accomplished. The device only lacks some final assembly but otherwise it is complete. One thing that became clear during the process was how difficult it is to produce small and precise steel parts with conventional manufacturing methods. Internal stresses within steel plates and thermal distortions can easily ruin small steel structures. Designing appropriate welding jigs is an important task for even simple devices. Laser material processing is a promising tool for this kind of steel processing because of the flexibility, good cutting quality and also precise and low heat input when welding. Next step in this project is the final assembly and the actual distillation tests. The tests will be carried out at Helsinki University of Technology.

Laserhitsausparametrien vaikutus ruostumattomien terästen hitsin mikrorakenteeseen

Työn teoriaosassa käsitellään ruostumattomia teräksiä ja terästen metallurgiaan vaikuttavia tekijöitä yleisesti, sekä terästen hitsattavuutta. Hitsauksesta teoriassa käydään läpi laser- ja kaasukaarihitsausta ja hitsin metallurgiaan vaikuttavia tekijöitä. Kokeellisessa osassa paneudutaan kahdeksan eri ruostumattoman teräksen hitsien metallurgiaan ja metallurgiassa tapahtuviin muutoksiin hitsausparametrien mukaan. Koemateriaaleina on neljä austeniittista ruostumatonta terästä, 201, 301LN, 316L ja 254 SMO, kaksi austeniittis-ferriittistä ruostumatonta terästä, 2101 LDX ja 2205, sekä kaksi ferriittistä ruostumatonta terästä, 430 ja 1.4003. Hitsien mikrorakenteen tutkimisessa käytettiin sekä valomikroskooppia sekä joissain tapauksissa pyyhkäisyelektronimikroskooppia. Lisäksi työn kokeellisessa osassa paneuduttiin hitsien metallografisiin syövytystekniikoihin. Kokeiden perusteella voidaan sanoa, että hitsin metallurgia riippuu hitsauksen aikaisesta lämpösyklistä ja hitsausparametreilla voidaan vaikuttaa tämän lämpösyklin muotoon. Austeniittis-ferriittisillä teräksillä hitsauksen aikaisesta lämpösyklistä riippuu pitkälti hitsin austeniitti-ferriitti-suhde. Ferriittisillä teräksillä lämpösyklin muoto vaikuttaa hitsiin muodostuvan martensiitin kovuuteen ja määrään sekä rakenteen hienojakoisuuteen. Austeniittisilla teräksillä lämpösyklinmuodon vaikutus riippuu pitkälti teräksen seostusasteesta ja seosaineista. Austeniittisilla teräksillä kokeissa havaittuja muutoksia, parametrien muutosten mukaan oli muun muassa suotautumisen voimakkuuden

Factors affecting the usability of aspen (Populus tremula) wood dried at different temperature levels

In this dissertation the main aim was to study the usability of aspen wood in the mechanical wood processes, especially the factors that affect the usability of aspen wood, which is dried at different temperature levels. The problematic of varying temperatures from level to another seem to have significant effects on distortions. According to the studies conducted, many practical solutions for drying of aspen timber can be made. European aspen sawn timber should be dried in relatively narrow widths, short lengths, edged and sawn pith free. The results achieved give an interesting view for the distortions of aspen wood between HT drying and heat treatment. The most significant result is that cupping seems to decrease when increasing temperature level from HT drying to heat treatment phase. The difference is significant. Other very obvious result is that bow and crook are increasing between these two temperature levels, bow significantly. Also the modelling gives a good background for this result since cupping is reduced by higher temperatures. It can also be assumed that these distortions can be affected for example by sorting out the timber used to different moisture levels before drying. This could be a very simple solution for practical purposes. From practical point of view, it was also noted during the drying tests performed that the discoloration seem to be no problem for aspen boards dried in temperatures under 150 °C. Altogether, this dissertation covers many interesting points of view of factors affecting distortions of wood in different temperature stages. Aspen as species in use of mechanical wood industries seems to be a species suitable for component production. According to the results, the best yield from aspen timber can be achieved in industry that can utilize relatively short components of sawn wood. Results achieved give a significant indication about the factors affecting distortions of wood at different temperature stages of drying, especially considering European aspen.

Energiatehokas toimisto - LED -teknologia

Tässä työssä käsitellään toimistorakennusten energiankulutusta ja nykyisiä toimistojen valaistusratkaisuja. Työssä perehdytään LED-valaistusteknologiaan sekä energiatehokkaaseen toimistovalaistukseen. Energiatehokkaan valaistuksen osalta käsitellään toimistovalaistuksen vaatimuksia, valaistuksen ohjausta ja luonnonvalon vaikutusta energiankulutukseen. Tutkimuskohteena oli Helsingin yliopiston tiloissa sijaitsevat neljä toimistohuonetta, joista kahden valaistusjärjestelmä uusittiin ja kahden jätettiin entiselleen vertailun vuoksi. Tutkimuksessa kartoitettiin toimistohuoneiden nykyistä energiankulutusta ja etsittiin keinoja sen tehostamiseen valaistuksen osalta. Tässä työssä tutkittiin erityisesti LED-valaisimien ja valaistuksen ohjauksen hyödynnettävyyttä toimistotiloissa. Toimistotilojen elinkaarikustannuslaskelmilla pyrittiin toteamaan valaistusjärjestelmien taloudellinen kannattavuus 30 vuoden tarkastelujaksolla. Tutkimuksessa tehtiin käyttäjäkysely toimistohuoneissa työskenteleville henkilöille ennen ja jälkeen muutoksen. Kyselyn perusteella voitiin todeta uusitun valaistusjärjestelmän hyödyt ja puutteet käyttäjän näkökulmasta.

Technological and business challenges of smart grids

Growing recognition of the electricity grid modernization to enable new electricity generation and consumption schemes has found articulation in the vision of the Smart Grid platform. The essence of this vision is an autonomous network with two-way electricity power flows and extensive real-time information between the generation nodes, various electricity-dependent appliances and all points in-between. Three major components of the Smart Grids are distributed intelligence, communication technologies, and automated control systems. The aim of this thesis is to recognize the challenges that Smart Grids are facing, while extinguishing the main driving factors for their introduction. The scope of the thesis also covers possible place of electricity Aggregator Company in the current and future electricity markets. Basic functions of an aggregator and possible revenue sources along with demand response feasibility calculations are reviewed within this thesis.

Time-Resolved Photoluminescence in Antimonide and Dilute Nitride Quantum Well Structures

This Master's thesis is devoted to semiconductor samples study using time-resolved photoluminescence. This method allows investigating recombination in semiconductor samples in order to develop quality of optoelectronic device. An additional goal was the method accommodation for low-energy-gap materials. The first chapter gives a brief intercourse into the basis of semiconductor physics. The key features of the investigated structures are noted. The usage area of the results covers saturable semiconductor absorber mirrors, disk lasers and vertical-external-cavity surface-emittinglasers. The experiment set-up is described in the second chapter. It is based on up-conversion procedure using a nonlinear crystal and involving the photoluminescent emission and the gate pulses. The limitation of the method was estimated. The first series of studied samples were grown at various temperatures and they suffered rapid thermal annealing. Further, a latticematched and metamorphically grown samples were compared. Time-resolved photoluminescence method was adapted for wavelengths up to 1.5 µm. The results allowed to specify the optimal substrate temperature for MBE process. It was found that the lattice-matched sample and the metamorphically grown sample had similar characteristics.

Pk-yrityksen layout-suunnittelu ohutlevytuoteteollisuudessa

Diplomityössä käsitellään omistajanvaihdon myötä tapahtuvaa yritysten yhdentymistä pkt- sektorilla. Tutkimuksen tarkoituksena oli suunnitella layout uuteen halliin sekä suunnitella muuttoprosessi kokonaisuudessaan. Tutkimuksessa käsiteltiin koneiden siirron lisäksi myös yritysten yhdentymistä ja yritysfuusiota. Ratkaisumalleja haettiin kirjallisuudesta, tuotannon seuraamisesta ja edellisistä muutoista syntyneistä kokemuksista. Työn aikana kartoitettiin yritysten nykytilanne ja etsittiin siellä olevat parantamista vaativat kohdat. Lisäksi selvitettiin yritysten tuotanto layout -suunnittelua varten. Layoutin tekemisen runkona käytettiin Mutherin -layoutkaaviota. Tietojen pohjalta tehtiin kolme erillistä mallia, joista hyötyarvomatriisia hyväksi käyttäen valittiin yksi. Lisäksi yritysten yhdentymisen työkirjan avulla tehtiin lista tarvittavista toimenpiteistä ennen muuttoa sekä muuton jälkeen. Tutkimuksessa käsiteltiin myös yrityksen ohjelmainvestointeja sekä levytyökeskuksen että laserleikkauskoneen nestaukseen. Lisäksi työssä käsiteltiin myös uusia koneinvestointeja ja uutta organisaatiokaaviota.

Country Risk and Market Reactions to Earnings Announcements: Evidence from Finnish Stock Markets

The objective of this thesis is to examine the market reaction around earnings announcements in Finnish stock markets. The aim is to find out whether the extreme market conditions during the financial crisis are reflected in stock prices as a stronger reaction. In addition to this, the purpose is to investigate how extensively Finnish listed companies report the country segmentation of revenues in their interim reports and whether the country risk is having a significant impact on perceived market reaction. The sample covers all companies listed in Helsinki stock exchange at 1.1.2010 and these companies’ interim reports from the first quarter of 2008 to last quarter of 2009. Final sample consists of 81 companies and 630 firm-quarter observations. The data sample has been divided in two parts, of which country risk sample contains 17 companies and 127 observations and comparison sample covers 66 companies and 503 observations. Research methodologies applied in this thesis are event study and cross-sectional regression analysis. Empirical results indicate that the market reaction occurs mainly during the announcement day and is slightly stronger in case of positive earnings surprises than the reactions observed in previous studies. In case of negative earnings surprises no significant differences can be observed. In case of country risk sample and negative earnings surprise market reaction is negative already in advance of the disclosure contrary to comparison sample. In case of positive surprise no differences can be observed. Country risk variable developed during this study seems to explain only minor part of the market reaction.