After the Crobex index sharply fell yesterday, most analysts today expect its stagnation on the Zagreb Stock Exchange, pointing out that the price of most stocks is below the book value of the companies.
Of the 8 analysts from brokerage firms who participated in Hina’s survey, half expect stagnation today, while two expect growth and two expect a decline in Crobex. The Crobex index plummeted yesterday by 5.45 percent, to 1,933 points, što is its lowest level since September 2005. Regular trading in stocks amounted to 36.3 million kuna."Due to yesterdayšnjeg oštrog pada cijena dionica, neopravdanog promatramo li s fundamentalnog aspekta, danas na domaćem tržištu očekujemo lagani porast", emphasize the brokerage firm Argus Securities. The domestic stock index thus lost support at 2,000 points yesterday.
"At this moment, it is difficult to assess in which direction Crobex will move further. We see the next key support at 1,500 points", they emphasize from that brokerage firm. Yesterday, the most important stock indices on Wall Street fell by more than two percent as investors were concerned about news of a recession in the Japanese economy and a drastic number of layoffs at Citigroup. Analysts say that the market is still searching for a bottom, which is why uncertainty and nervousness will prevail in the coming days and weeks. Asian stock prices also fell this morning due to investors’ fears of a long and deep recession. This morning, the Nikkei index on the Tokyo Stock Exchange fell by 2.3 percent, while the MSCI index of Asia-Pacific stocks, excluding Japan, lost 1.85 percent this morning.
The current mood prevailing in the domestic market is also indicated by the fact that despite the financial report on the jump in net profit of the Croatian Institute of Construction in the first nine months of this year by 63.9 percent to 59.6 million kuna, the price of that stock fell almost six percent yesterday, to 5,700 kuna."The price of most stocks of domestic companies is now below their book value. Therefore, we believe that, along with prior analysis and discussion with an investment advisor, it is time to buy. It is worthwhile to invest in those stocks whose price is below or at the level of book value, because when the trend changes, those stocks will experience a faster recovery", they emphasize at Argus Securities.
