Investors are interested in how domestic companies navigate through the recession

The focus of investors on the Zagreb Stock Exchange today, as well as in the coming days, will be financial reports that will show how domestic companies have navigated through the recessionary environment in the past quarter.

All 7 analysts from brokerage firms who participated in the Hina survey today expect stagnation of the Crobex index. The Crobex index slightly weakened last week by 0.04 percent to 1,776 points, while the Crobex10 jumped by 1.02 percent to 999 points. Regular trading reached 85.24 million kuna, which is 31 million more than a week ago.

– The Crobex indices managed to resist negative trends on European exchanges last week, and on Friday, significant trading of 37 million kuna was achieved. It is difficult to say whether this is just sporadic activity from some larger investors or their positioning ahead of more intense business report announcements, says Davor Špoljar, senior capital market analyst at Erste&Steiermaerkische Bank. Today, Špoljar expects modest trading, which is typical for the beginning of the week.

– However, since Thursday is a non-working day, it is possible that liquidity at the beginning of the week will be somewhat higher, especially since the next three days will see an intensification of business result announcements for the third quarter, Špoljar notes.

Among the more prominent names, today, Ina and Končar Elektroindustrija have announced their business results, while tomorrow HT, Ericsson Nikola Tesla, Janaf, Petrokemija, Podravka, and Atlantic Group will follow.

AD Plastik reported this morning that in the third quarter it achieved total revenues 7.4 percent lower than in the same period last year, amounting to 166.99 million kuna. However, the net profit of the company doubled to 2.87 million kuna. For the first nine months, AD Plastik achieved four percent higher revenues, totaling 593.89 million kuna, while net profit decreased by 1.6 percent to 42.96 million kuna.

Additionally, Podravka reported this morning that by the end of the year, it will close the livestock slaughter line at the Danica factory as part of a process optimization plan at the group level. A feasibility study showed that last year the loss on the livestock slaughter line amounted to about 14 million kuna, and the poor results continued in the first six months, jeopardizing the overall profitability of that meat industry, Podravka stated.

On global stock exchanges, the week began with a decline in stock prices, as the quarterly business results of most companies were not encouraging, nor were the macroeconomic data from the largest global economies. As a result, Asian markets were under pressure this morning, and European exchanges also started the week with a decline in stock prices.

Investors are not ready to significantly change positions, partly because, according to the latest information, the options and stock market in New York will not operate on Monday, and possibly Tuesday, due to the threat of Hurricane Sandy.

– Last week, a slight price decline prevailed on foreign exchanges, primarily due to worse-than-expected business results for the third quarter, emphasizes Špoljar. He adds that this week, the focus of investors will be on business results, especially in the automotive industry and restaurant chains. At the end of the week, the release of key employment reports in the U.S. economy for October is expected.

– Today, somewhat calmer trading is possible in foreign markets, as the American markets will be closed due to the hurricane threatening New York. However, if the quarterly results of European companies fall below expectations, the markets will certainly react, concludes Špoljar.