Today, the Zagreb Stock Exchange expects a continuation of index stagnation with low trading volumes, as there are no encouraging signals from global markets and no significant reactions from investors are anticipated regarding the proposed budget rebalance.
All 8 analysts from brokerage firms who participated in Hina’s survey expect stagnation of the Crobex today. The Crobex index rose by 0.18 percent yesterday, to 1,876 points, while Crobex10 increased by 0.29 percent, to 997 points. Regular trading amounted to 14.4 million kuna, što is about 3 million more than on Friday. "The domestic market continues to experience index stagnation with low trading volumes these days, and it could be the same today. Investors remain concerned about the poor macroeconomic situation and even more about the uncertainty of its future development," says Ana Franin, financial analyst at Raiffeisen Consulting. After yesterday’s meeting with union leaders, Prime Minister Jadranka Kosor stated that the government has reduced the state budget by 1.5 billion kuna through various measures. She also stated that salaries and pensions will not be reduced by the budget rebalance, and today excise duties on gasoline and cigarettes will be increased. Among other things, the Prime Minister announced that the government will continue discussions on the union’s proposal for taxing banks and financial institutions with leading commercial banks and the governor of the Croatian National Bank, adding that efforts will continue towards an equitable distribution of the burden of the crisis.
"Considering the key points of the proposed state budget rebalance that have been published, it seems that there are no significant changes, and consequently, I do not expect a significant reaction from investors today," evaluates Franin. There are also no encouraging signals from global markets. On Wall Street, stock prices fell for the third consecutive day on Monday, and investors were not encouraged by announcements of new acquisitions in the corporate scene, što usually has a positive effect on the market. Asian stock markets also saw stock prices fall this morning, following yesterday’s losses on Wall Street, and the Japanese Nikkei index dipped below the 9,000-point level for the first time in 15 months. "Asian markets are recording falling stock prices this morning due to investor concerns about the slowdown in the U.S. economic recovery. Today, data on housing sales in the U.S. is expected, with analysts estimating a decline, which could put European markets under selling pressure today, as indicated by futures indices," concludes Franin.
