Today, the Zagreb Stock Exchange may experience significant uncertainty, as negative news is coming from global markets; however, analysts believe that the market could stabilize by the end of the day.
Of the nine analysts from brokerage firms who participated in Hina’s survey, four expect an increase in the Crobex index today, three expect a decline, and two foresee stagnation. The Crobex index fell by 0.96 percent yesterday, to 1,674 points. The regular trading volume was 16.83 million kuna."In the shadow of yesterday’s events on Wall Street, it is difficult to have positive expectations, but I think we could witness stagnation in stock prices on the domestic exchange today, just like in previous days. Given that we have not significantly followed the rise of the most important global stock indices over the past five days, it is possible that we will not react to yesterday’s sharp decline" says Goran Vorkapić, broker and investment advisor at the brokerage firm To-One.
On Wall Street yesterday, leading indices plummeted by more than 4 percent, as investors fear that the new bank rescue plan will not be sufficient to normalize lending and pull the economy out of recession. The largest daily drop in the Dow Jones index since December of last year followed after Treasury Secretary Timothy Geithner presented the long-awaited plan for rescuing the financial sector, worth up to $2 trillion, which is intended to buy bad debts from banks and stimulate lending to citizens and companies. However, investors were disappointed by the lack of details on how the government will clean the financial system of bad debts. Following the sharp decline in prices on Wall Street, stock prices also fell this morning on Asian exchanges.
