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The Collapse of Builders on the Zagreb Stock Exchange

Trading on the Zagreb Stock Exchange continues to be characterized by very low liquidity, with the shares of the construction sector drawing somewhat greater investor focus, which are experiencing a sharper decline in prices.

The Crobex index at 12:00 PM stood at 2,153 points, što je 0,43 posto niže u odnosu na jučer. At the same time, Crobex10 reached 1,154 points, recording a loss of 0.60 percent. The regular turnover of shares was 7.5 million kuna, što je otprilike tri milijuna manje nego jučer u ovo doba. "The domestic market continues to experience quite low liquidity, which is why trading is lethargic. This is also a consequence of the still poor macroeconomic outlook for the domestic economy. Under the pressure of poor indicators, investors currently do not see even a glimmer of optimism, which could be the only thing to stimulate trading," says Dalibor Balgač, an analyst in the Economic Research Department of Hypo Alpe Adria Bank. The only stock with a million kuna turnover so far is T-HT’s share, which achieved 2.74 million kuna. Its price has weakened by 0.81 percent to 320 kuna. Today, construction shares are also in somewhat greater focus for investors, after Montenegrin Prime Minister Milo Đukanović stated on Thursday that the Croatian consortium Konstruktor-IGH-Tehnika lost the so-called job of the century related to the construction of the Bar-Boljare highway. Thus, the IGH share plummeted by 4.8 percent, bringing its current price to 2,446 kuna.

With low turnover, the Tehnika share weakened by approximately one percent to 1,524 kuna. The Dalekovod share also decreased by two percent to 358.25 kuna, and Viadukt by 3.24 percent to 318 kuna. Among today’s business news, it is noteworthy that the Management and Supervisory Board of Privredna banka Zagreb (PBZ) propose that the General Assembly scheduled for April 19 decides on the use of profits for 2009. Of the 926.6 million kuna profit after taxation, 323.2 million kuna should be allocated for the payment of a dividend of 17 kuna per share, and 603.4 million kuna into retained earnings. The price of PBZ’s share is 599.99 kuna, which is 0.29 percent higher than yesterday. It was also announced today that the Supervisory Board of Zagrebačka banka proposes that the entire realized profit of the Bank for 2009, amounting to 1.2 billion kuna, be allocated to retained earnings. The price of Zagrebačka banka’s share is 251 kuna, which is a decrease of 0.15 percent compared to yesterday, but with very low turnover. Currently, the Medika share is in negative blockade due to a price drop of 10.02 percent to 6,813 kuna. (H)