Investors Cautious on ZSE, Prices in the Red

On the Zagreb Stock Exchange today, investors are cautious and mainly focused on global events, with the prices of most stocks recording a decline. Currently, the Crobex stands at 3,013 points, which is 0.82 percent lower than yesterday.

The regular trading volume reached 40 million kuna by 1 PM. "The eyes of market participants are primarily on global events. Investors are cautious in anticipation of the vote in the House of Representatives of Congress on the U.S. government’s plan to rescue the financial industry from the crisis," says Mirjana Lovrenčić, a broker at Ilirika Securities. After the U.S. Senate voted yesterday on the government’s proposal to rescue the financial industry from the crisis, there is now eager anticipation for tomorrow’s vote in the House of Representatives.

The most liquid stock is Podravka, which accounted for a quarter of the trading volume due to the exchange of ownership positions between funds. Its price weakened by 4.25 percent to 335 kuna. Following in liquidity is the stock of the Institute of Construction of Croatia, with a trading volume of 6.9 million kuna and a price increase of 0.68 percent to 8,349 kuna. When looking at its average price today compared to yesterday’s closing, it has increased by almost two percent.

Analysts interpret the increased interest in this stock as a result of IGH’s victory in the international urban planning and architectural competition for the new passenger terminal at Zagreb Airport, which is expected to cost between 280 and 300 million euros, with completion anticipated by the end of 2011. Among the most liquid is also the stock of INA, with a trading volume of nearly four million kuna and a price drop of 2.33 percent to 2,665 kuna. The market is awaiting final data from the Central Depository Agency on the number of INA shares offered for sale to MOL. "Considering that funds will also sell INA shares from their portfolios to MOL, it is expected that this will significantly impact the domestic stock market in the upcoming period, as most of that capital should flow back into the market, either into bonds or stocks," says Lovrenčić. Among the eight stocks with million kuna trading volume, the stock of T-HT is also included, which saw its price drop by 1.53 percent to 255 kuna.  (H)