As the season for financial report announcements of domestic companies is in full swing, investors on the Zagreb Stock Exchange are struggling to find reasons for significant investments, with only two shares achieving million kuna turnover.
The Crobex index was down 0.52 percent at 12:00, at 2,166 points. The Crobex10 weakened by 0.35 percent, to 1,168 points. Regular trading volume exceeded 15 million kuna, which is about 6 million higher than yesterday at this time. "In the domestic market, we see increasingly weaker trading volumes, after the money from recent sales of HT shares, following the expiration of the right to participate in dividends, was absorbed into other blue-chip issues. There is no more room for liquidity growth, as investors find it difficult to identify reasons that would prompt them to invest larger amounts of money in shares," says Dalibor Balgač, an analyst at the Economic Research Department of Hypo Alpe Adria Bank.
Only two shares achieved million kuna turnover by noon – HT and Ericsson Nikola Tesla shares. The HT share achieved a turnover of 9.5 million kuna. Its price fell by 1.15 percent, to 273 kuna. This morning, HT announced that its revenues fell by 6 percent in the first quarter of this year compared to the same period last year, to 1.94 billion kuna, while net profit fell by 34.2 percent, to 384 million. "The decline in HT’s revenues in the first quarter was below analysts’ expectations. However, the significant drop in net profit is striking. A considerable impact on this was also the domestic money market, where interest rates are extremely low, which is why HT, which has a large cash position, is recording a significant decline in net financial income," notes Balgač. The season for financial report announcements is in full swing today, and reports are continuously flowing onto the stock exchange’s website.
