With a 41% weighting in the index, Novo Nordisk's decline drives Danish market losses, highlighting concentration risk.

The Morningstar Denmark Index is now undervalued, trading at a 20% discount.
US-Denmark tensions add geopolitical risk, affecting companies like Orsted.

With the Morningstar Denmark Index as the worst-performing Morningstar index this year, across both developed and emerging markets, Danish stocks may now appear to offer compelling value for long-term investors. The Danish index is down 20.7% so far in 2025 and 38.4% in the past 12 months.

Morningstar New Zealand Index, the second worst performing developed market index, is down 0.2% in the same period. When looking at emerging markets, Morningstar Thailand Index has lost 3.7% followed by Morningstar Malaysia Index, reporting a 1.8% loss. All return data are in base currency.

"The previously high-flying Danish economy has had its wings clipped as historical growth figures have been revised lower and industrial production has declined, particularly in the pharmaceutical sector," says Jan Størup Nielsen, chief analyst at Nordea".

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(global.morningstar.com)