Ingra and Dalekovod Stocks in the Spotlight

A calm start to the week is expected on the Zagreb Stock Exchange, as the season for the release of business reports from domestic companies has concluded, and global markets are trading cautiously ahead of the presidential elections in the U.S.

Of the 6 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation today, while one anticipates a decline in the Crobex index.

The Crobex index fell by 1.83 percent last week, to 1,744 points, while Crobex10 dropped by 2.44 percent, to 975 points.

Regular trading amounted to only 46.4 million kuna, which is approximately 40 million less than the previous week. However, one day was not operational due to a holiday.

“I do not expect significant price fluctuations on the domestic market today, as there are no major new business news. However, trading volume could be slightly higher than on Friday, following the return of investors from the extended weekend,” says Ana Franin, financial analyst at Raiffeisenbank Austria.

She adds that the stocks of Ingra and Dalekovod could be in focus for investors, as uncertainty remains regarding the resolution of their account blockages.

Dalekovod reported at the beginning of last week that the company’s account is blocked and that the Management is taking all necessary measures to resolve the causes of the blockage as quickly as possible. In the first nine months of this year, the group’s net loss amounted to 9.6 million kuna, while in the same period last year it reached 110.9 million kuna.

Ingra, on the other hand, reported mid-week that due to the account blockage, it was unable to redeem the 20th tranche of commercial papers worth 4.5 million euros.

Foreign markets are trading cautiously this morning ahead of the presidential elections in the U.S.

Polls show that there is a tight race between President Barack Obama and his Republican challenger Mitt Romney, but Obama has a slight advantage in several states that could be crucial for the elections.

“Investors are on guard ahead of the presidential elections in the U.S., and are less inclined to invest in risky asset classes, such as stocks,” concludes Franin.