Most analysts today expect further stabilization on the Zagreb Stock Exchange, with investors focusing on the nine-month financial reports of companies and the presidential elections in the USA.
Of the nine analysts from brokerage firms who participated in Hina’s survey, 5 expect stagnation of the Crobex today, while 4 expect its increase. The Crobex index rose by 1.87 percent yesterday, reaching 2,233 points. Regular trading volume was below 42 million kuna. "I expect a continuation of the slight rise in stock prices today and a focus on developments in global markets. The key event for the future direction of stock indices will be the results of the American presidential elections. If the Democratic candidate Barack Obama wins, the markets could be hit by a wave of optimism," says Nada Ružić, director of the brokerage firm Argus Securities.
Leading indices on Wall Street remained almost unchanged in unusually calm trading on Monday as investors are cautious ahead of the presidential elections, but also due to new indicators that the American economy is on the brink of recession, such as a significant drop in car sales in October. Ahead of today’s elections, Democratic presidential candidate Barack Obama leads over Republican John McCain in all polls. However, it seems that investors are refraining from trading and trying to decipher how the election outcome could affect the market direction in the upcoming period. Asian markets are also experiencing much less price volatility than in October. "Crobex has been in the plus for five days now, but liquidity is low. This could remain the case until the end of the year due to the situation in domestic investment funds and until the market fully stabilizes. In such conditions, the fundamentals of companies should play the most important role in making investment decisions," evaluates Ružić.
