Optimism Returns to the Zagreb Stock Exchange

After a sharp 5-day correction in stock prices, today saw a strong increase on the Zagreb Stock Exchange, primarily influenced by positive trends in stock markets worldwide. Currently, the Crobex stands at 2,163 points, which is 3.81 percent higher than yesterday.

By 1 PM, the regular trading volume amounted to 34 million kuna. However, in the last approximately hour, the growth of the domestic stock index has somewhat slowed down. This morning, the Crobex index jumped more than 7 percent, reaching 2,231 points. Due to price increases of more than 10 percent, there were 24 stocks in positive block, including shipping and construction stocks. "A pleasant surprise on the stock exchange, considering the previous days of trading marked by significant price corrections. After several consecutive days marked by large declines in stock prices, such ‘bounces’ usually occur. Nevertheless, exceptional volatility still prevails in the market," says Suzana Lončar, director of the brokerage firm Credos.

Today’s pleasant surprise on the domestic stock exchange is mainly the result of solid growth in stock prices on global exchanges, which followed after 5 days of sharp corrections. Currently, European stock indices are up about 3 percent, with the Frankfurt DAX even more than 8 percent. Additionally, U.S. futures indices are experiencing strong growth due to investors’ assessment that stocks are now cheap, after their prices fell yesterday to the lowest levels in more than five years.

So far, the most liquid stock is T-HT, with a turnover of nearly 11 million kuna and a price increase of 3.3 percent, to 225 kuna. Following in terms of turnover is the stock of Atlantska plovidba, which achieved 4.2 million kuna. Its price is up 13.08 percent, to 794 kuna. The stock of the Institute of Construction of Croatia, on the other hand, increased by 7.13 percent, to 6,200 kuna, with a turnover of 3.6 million kuna. Meanwhile, today Ericsson Nikola Tesla reported that in the first nine months of this year, it achieved a net profit of 106.7 million kuna, 0.8 percent more than last year. Operating profit reached 122.7 million kuna, 36 percent higher, while sales revenue increased by 3 percent, to 1.31 billion kuna. The stock of that company strengthened today by 6.4 percent, to 1,310 kuna.

Hidroelektra niskogradnja, on the other hand, reported that in the first nine months it achieved a net profit of 13.9 million kuna, which is 9.4 percent more than the profit from the same period last year. Total revenues reached 877.9 million kuna, 13.2 percent higher. The price of that stock rose by 5.23 percent, to 323 kuna, but with low turnover of only 88.6 thousand kuna. It is difficult at this moment to assess whether the positive momentum on the stock exchange will be maintained. "Guided by previous experiences in the current crisis in global financial markets, we must remain constantly vigilant and ready to react. Volatility will only calm down with the stabilization of the financial sector," notes Lončar for Hina’s financial service.