Leda Stock with Turnover of 9.2 Million Kuna

After a sharp decline on Monday, today the Crobex indices of the Zagreb Stock Exchange have slightly risen for the second consecutive day, with Leda’s stock in focus, thanks to the company’s recapitalization.

The Crobex index was up 0.25 percent around noon, at 1,697 points, while Crobex10 was up 0.1 percent, at 948 points. The regular turnover reached 13.6 million kuna by noon, which is double compared to yesterday at the same time.

The relatively high turnover is attributed to Leda’s stock, which achieved a turnover of 9.2 million kuna by noon, with its price rising by 2.2 percent to 7,745 kuna.

Today, the book for the subscription of new regular shares was closed, through which Leda aims to increase its share capital from the current 83.6 million to a maximum of 119.3 million kuna.

Leda’s management has decided that the final price of one new regular share, with a nominal value of 380 kuna, issued in the process of increasing the share capital, will be 8,000 kuna.

Only the shares of Erste&Steiermaerkische bank have made it to the millionaire list, with a turnover of 1.8 million kuna. Its price has increased by almost 1 percent to 99 kuna.

Turnovers for other stocks are significantly below one million kuna.

“After the sharp drop in stock prices on Monday, followed by yesterday’s slight recovery, there is indecision in the market today. It is clear that new news is awaited that could move the market in one direction or another,” emphasizes Siniša Gašparević, investment advisor in the Treasury and Investment Banking Sector of Splitsko-dalmatinska Bank.

Given that the Christmas holidays are approaching, no significant changes in the market are expected in the coming days.

“I expect calm trading in the coming days, so Crobex is unlikely to rise significantly by the end of the year, but based on technical analysis and some other factors, Crobex could reach 1,830 points in the next few months. In short, I expect that next year will be better than this one, in which Crobex is one of the biggest losers among global stock indices,” says Gašparević.

In light of the turmoil that has engulfed Croatia after Standard & Poor’s downgraded the country’s credit rating last Friday, Gašparević believes that the authorities should not waver.

“After the turmoil with the credit rating downgrade, we analyzed new issues of government bonds in global markets, and it turned out, for example, that Morocco issued 10-year bonds at an interest rate of only 4.25 percent, and 30-year bonds at 5.5 percent. Given the easing of the debt crisis in the eurozone and the long-standing loose monetary policy of the largest central banks in the world, interest rates are so low that it is actually a good time to issue bonds in foreign markets. It would not be easy, but Croatia will enter the European Union next year, which reduces risks,” says Gašparević.

And on global stock markets, there is a positive sentiment as hopes have strengthened that Republicans and Democrats in Washington will reach an agreement on reducing the U.S. budget in time to avoid the ‘fiscal cliff’.

Around noon, the London FTSE, Frankfurt DAX, and Paris CAC indices were up between 0.3 and 0.7 percent.