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Podravka Remains in Focus for Investors

As investors lack guidance, trading on the Zagreb Stock Exchange today is expected to resemble yesterday’s, which was marked by index stagnation and low liquidity.

Of the 12 analysts from brokerage firms who participated in Hina’s survey, seven expect stagnation of the Crobex today, three expect a decline, and two anticipate an increase. The Crobex index closed trading yesterday at 2,158 points, just 0.01 percent lower than on Friday. The Crobex10 weakened by 0.23 percent, to 1,133 points. Regular trading in shares amounted to only 11.5 million kuna, which is 13 million kuna less than on Friday. "In the coming days, I expect continued stagnation of prices and trading on the domestic exchange until we receive clearer signals on which direction we should take. Guidance should come from the area of economic policy or the domestic business sector," says Ivan Bašić, investment advisor at the brokerage firm Trcin vrijednosnice.

No encouraging news is coming from global exchanges so far. On most Asian exchanges, stock prices fell this morning for the second consecutive day, as investors are cautious ahead of the quarterly business reports of numerous American companies and banks. European exchanges are also trading cautiously this morning while awaiting the business results of American bank Citigroup and technology giant IBM. "Today, I expect stagnation of the Crobex with a positive sign. From a technical perspective, the Crobex reached the target level of 2,150 points last week. In the event of a minor correction of the upward trend that has been ongoing since the beginning of the year, we see the first support for the Crobex at 2,130 points and the second at 2,100 points. On the upside, however, the resistance level for the Crobex is at 2,200 points," emphasizes Nada Ružić from Ilirika vrijednosnih papira.

As she adds, investors on foreign exchanges are waiting for the afternoon announcement of quarterly business results from the American financial giant Citigroup for new guidance. Meanwhile, the focus of domestic investors remains on Podravka’s shares, particularly speculation regarding its potential acquisition, concludes Ružić. Among business events, the launch of a modernized polyethylene production facility at Dina Petrokemija has been announced for today. Additionally, the Sisak Oil Refinery will hold a press conference regarding the fire at the facility on Saturday. (H)