Can the INA stock awaken Croatian investors?

On the Zagreb Stock Exchange, investors will focus today on INA shares, following MOL’s announcement that it will offer 2,800 kuna for the purchase of shares from small investors, which is expected to lead to an increase in both Crobex indices.

Of the 9 analysts from brokerage firms who participated in Hina’s survey, 7 expect an increase in Crobex today, while 2 expect stagnation. The Crobex index weakened by 0.61 percent yesterday, closing at 1,784 points. The Crobex10 fell by 0.72 percent to 948 points. Regular trading amounted to around 23 million kuna, approximately 9 million more than the previous day. „The focus of investors in the domestic market today will be on INA shares, following MOL’s announcement that it will offer to buy back the remaining shares from small investors at a price of 2,800 kuna. Such an announcement will certainly have a positive impact on the price of INA shares, and due to its weight in both indices, it will also affect their growth. Investors will closely monitor all new news and details regarding the announced offer“, emphasizes Maja Bešević, portfolio manager at Podravska banka.

The MOL Group announced yesterday an offer to purchase free float shares of INA at a price of 2,800 kuna per share. According to MOL Group spokesperson in Croatia, Domokos Szollar, this is the same price at which MOL purchased INA shares in the voluntary public offering in 2008 and about 56 percent higher than the average price at which INA shares have recently been traded on the Zagreb Stock Exchange. MOL currently holds 47.155 percent of INA shares, the Croatian government holds 44.836 percent, and institutional and private investors hold 8.009 percent of the shares. Yesterday, the price of INA shares closed trading at 1,711 kuna. Bešević adds that movements in global markets today will have less impact on the domestic market than usual, precisely due to the latest developments regarding INA shares. Positive news continues to arrive from global markets. On Wall Street, stock prices rose significantly for the second consecutive day on Thursday, thanks to good news from the U.S. economy and easing fears of a debt crisis spreading in the eurozone. Asian stock markets also saw prices rise this morning, but trading is cautious ahead of the key employment report in the U.S.

European markets are also trading cautiously. „The employment data in the U.S. today will determine the direction of trading on Wall Street. Expectations regarding this data are optimistic, with approximately 145,000 new jobs estimated to have been created in the industry. However, the unemployment rate is likely to remain stagnant at 9.6 percent“, assesses Bešević. Data on durable goods orders for the U.S. industry will also provide guidance to investors, while European markets will look at the purchasing managers’ index data from Italy, Spain, and other eurozone members. In the shipping market, the Baltic Dry Index (BDI) strengthened by 2.6 percent yesterday, reaching 2,133 points. However, it plummeted by as much as 22 percent during November. „The significant downward correction of the BDI is a result of reduced import activity from China in October by 13 percent, the shift of shipowners from annual to quarterly freight rate determination, and the constant influx of new ships into the global fleet“, concludes Bešević. (H)