Despite a slight increase in stock prices on European markets, the Crobex indices fell today on the Zagreb Stock Exchange, as investors have little reason for optimism given the continued decline of the domestic economy and Fitch’s downgrade of the rating forecast.
Around noon, the Crobex index was down 0.29 percent, at 1,763 points, while Crobex10 was down 0.33 percent, at 994 points. Regular trading amounted to 3.4 million kuna, which is approximately 4 million less than yesterday at this time.
– Despite a slight increase in stock prices on European exchanges, the Crobex indices are stagnating today on the domestic market with a negative sign. It seems that investors have little reason for optimism, considering today’s news about GDP, as well as yesterday’s Fitch downgrade of the rating forecast – says Lav Bernfest, an analyst in the Economic Research Department of Hypo Alpe Adria Bank.
The State Bureau of Statistics published the first estimate indicating that GDP in the third quarter fell by 1.9 percent compared to the same period last year, which is greater than expected. Eight macroeconomists who participated in the Hina survey expected, on average, that the economy weakened by 1.5 percent year-on-year in the third quarter. Their estimates of the decline ranged from 1 to 1.9 percent. Although higher than expected, this is still a smaller decline than in the previous quarter when GDP plummeted by 2.2 percent.
