Crobex at its lowest level since March 2006

Under the influence of a sharp decline in Asian and European indices, today Crobex experienced a drop of as much as 7.58 percent, falling to levels last seen in March 2006. The shares of the shipping sector and domestic banks saw the largest declines.

Another catastrophic drop in the domestic market. Unlike previous days, when Zagreb did not blindly follow global trends, today the correlation between our and foreign stock exchanges is once again strong. With an exceptionally high turnover of 187 million kuna on the regular market, Crobex ended the day at a closing value of 2,192 points. The last time the Croatian market was at such low levels was two and a half years ago, specifically on March 15, 2006.

The most liquid was the share of HT with a turnover of 22.4 million kuna and a price drop of 4.03 percent, closing at 227 kuna. Shipping companies continued their negative trend today, which has reduced most shares in the sector to a quarter of their value at the end of last year. Atlantska plovidba is down 13.86 percent today (8.5 million kuna turnover), Uljanik plovidba by 11.26 percent (1.8 million kuna turnover), Tankerska by 10.72 (500 thousand kuna turnover), and Jadroplov by 11.88 percent (500 thousand kuna turnover).

After shipping, the largest losses today are recorded by bank shares. RBA is down 17.1 percent (1.8 million kuna turnover), Zaba by 16.02 percent (two million kuna turnover), while PBZ’s share fell by only 2.84 percent (600 thousand kuna turnover). The share of Ericsson Nikola Tesla was traded for a total of 7.2 million kuna with a price drop of 7.87 percent. Even the traditionally very liquid construction companies did not avoid losses today. IGH is down 8.22 percent (6.3 million kuna turnover), Ingra by 7.04 percent (4.1 million kuna turnover), and Dalekovod by 7.42 percent (four million kuna turnover).

The share of Ina achieved a turnover of 2.5 million kuna, and the price is down by 9.78 percent, closing at 2,180 kuna.
The only share with a million kuna turnover is Podravka, which recorded a price increase of 1.5 percent (1.5 million kuna turnover). Trading in futures contracts on American stock indices had to be suspended today, before the opening of trading in New York, due to a drop of more than six percent. The start of trading brought a somewhat milder decline of “only” 4.5 percent, but panic in the U.S. could bring another record negative day. It seems we are returning to a catastrophic state in the market similar to that before the implementation of measures by global monetary authorities to exit the crisis. The big plan has obviously not worked…. (Amir Kulenović)

*The author owns shares of HT.