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Dalekovod in Focus of Investors

Due to the lack of encouraging news from the domestic economy, today the focus of investors on the Zagreb Stock Exchange will mainly be on movements in foreign markets, from which no encouraging signals are arriving.

Of the 10 analysts from brokerage firms who participated in Hina’s survey, five expect stagnation of the Crobex today, three expect a decline, and two expect an increase. Profit-taking sales yesterday lowered the Crobex by 1.03 percent, to 2,102 points. The Crobex10, on the other hand, weakened by 0.59 percent, to 1,110 points. Regular trading in shares amounted to 23.8 million kuna, što je otprilike 10 milijuna manje nego prethodnoga dana. "The domestic market will mainly follow movements in global markets today, as there are no significant news from the domestic economy. I expect stagnation of the Crobex, and new directions will come to us in the afternoon from Wall Street, when the key employment data for the US in November is expected to be released," says Maja Bešević, an analyst at the brokerage firm Abacus brokers.

On Wall Street, stock prices fell on Thursday after it was announced that the US services sector unexpectedly weakened, indicating weakness in the world’s largest economy. Investors were disappointed by the report from the Institute for Supply Management, which indicated that activities in the services sector unexpectedly fell in November. As a result, investors fear that the employment report for November, which will be released today, will show a larger increase in unemployment than expected. Analysts estimate that 130,000 Americans lost their jobs in November, while the unemployment rate remained unchanged at 10.2 percent, the highest level in 26 years. Stock prices also fell this morning on most Asian exchanges as investors are cautious ahead of the employment report in the US.

"If the employment data in the US aligns with expectations, I believe that positive sentiment will continue in foreign markets," assesses Bešević. The stock of Dalekovod could be in somewhat greater focus for investors today. Jutarnji list reports that results from the investigation by the State Attorney’s Office and the police regarding this construction company, which has contracted jobs worth one billion euros with state companies over three years, are expected soon. The investigation includes cases of selling substations to HAC, purchasing electricity from HEP at a lower price for Šibenik’s TLM, as well as the privatization of Dalekovod. (H)