Crobex Plummets to Lowest Levels in 4.5 Years

A combination of uncertainty and pessimistic investor sentiment has pushed the Crobex index on the Zagreb Stock Exchange to a new lowest level in the last four and a half years. At 1:00 PM, the Crobex index stood at 1,339 points, which is 3.17 percent lower than on Friday at the market close.

This is also its lowest level since September 28, 2004, when it was at 1,331 points. Regular trading reached 28.2 million kuna. "Along with negative global influences, the domestic capital market continues to struggle with uncertainty related to the announced changes in the second pillar of pension savings. Furthermore, investors are pessimistic about the situation in the domestic economy," say the investment company Erste Securities.

Currently, on European stock exchanges, the London FTSE index is down more than four percent, the Paris CAC is down more than three percent, and the Frankfurt DAX is down nearly three percent. Additionally, the Economic Research Department of Hypo-Alpe Adria Bank today published a forecast indicating that the Croatian economy could record a GDP decline of 2.9 percent this year. As stated in the semi-annual publication of that department "Macroeconomic Outlook 2009 – 2010," due to a number of uncertainties, it is possible that the rate of decline could be even greater. On the market, most of the trading so far has been achieved with T-HT shares, amounting to 16.5 million kuna. Its price is slightly down by 0.55 percent, standing at 225 kuna. As noted by Erste Securities, the main driver of market activity is the ‘ex-dividend day’ that occurs tomorrow for that share. This means that today is the last day for its purchase to qualify for the dividend advance payment – March 9, which is the reason why the price of that share is only slightly down.

However, the domestic stock index has been significantly pushed into the red by the less liquid shares of the shipping and construction sectors. Thus, the share of Atlantska Plovidba has plummeted by 6.55 percent, with its price at 617.5 kuna. It has so far achieved a turnover of 1.9 million kuna. The share of Jadroplov, on the other hand, records a loss of 7.87 percent, Tankerska Plovidba 4.37 percent, and Uljanik Plovidba 4.04 percent. The most liquid in the construction sector is the share of Dalekovod, with a turnover of 1.1 million kuna. Its price has fallen by 6.55 percent, to 236.9 kuna. All other shares from that sector record a turnover of less than one million kuna, with the share of IGH down by 8.13 percent, and Ingra by 7.68 percent. Among the millionaires, today the shares of Ina and the regular shares of Adrisa have also been included. The share of Ina records a loss of 2.96 percent, trading at 1,000 kuna, while the regular share of Adrisa is down by 5.33 percent, standing at 160 kuna. (H)