On the first trading day of the new year, the Crobex indices of the Zagreb Stock Exchange jumped by more than 1 percent, primarily due to optimism in global markets after the ‘fiscal cliff’ was avoided in the USA.
The Crobex index was up 1.3 percent at around 12:00, at 1,762 points, while Crobex10 rose 1.4 percent, to 984 points. Regular trading amounted to 5.9 million kuna, which is approximately 4 million more than on the last trading day of the previous year.
– The year has started well, with the Crobex jumping by more than 1 percent, thanks to the euphoria in global markets after the ‘fiscal cliff’ was avoided in the USA. Since the Crobex index stagnated last year, making it one of the weakest stock indices in the world, this year could be much better if the morning shows the day – says Siniša Gašparević, investment advisor in the Treasury and Investment Banking Sector of Splitsko-dalmatinska Bank.
And there is euphoria in global markets as early this morning, the U.S. House of Representatives, where Republicans hold the majority, supported a law that will increase taxes on those who earn the most.
The Senate, where Democrats hold the majority, had previously, two hours after the deadline of December 31, overwhelmingly supported a bill that reduces the budget deficit.
The most important factor of the agreement reached is the increase in the tax rate for households earning more than $450,000 annually from 35 to 39.6 percent, and any cuts to budget expenditures are postponed for two months.
This has removed the danger of the ‘fiscal cliff’, automatic cuts to budget expenditures, and tax increases, totaling around $600 billion, which could have pushed the economy into recession.
Thanks to this, stock prices in European markets rose sharply this morning. The London FTSE, Frankfurt DAX, and Paris CAC indices were up between 1.8 and 2 percent at 12:00.
On the Zagreb Stock Exchange, only the shares of AD Plastik made it to the millionaire list by noon. With a turnover of 1.4 million kuna, its price jumped 2.3 percent to 108.66 kuna.
Following with a turnover of around 415 thousand kuna is the share of Belje, whose price rose 2.9 percent to 72.16 kuna.
From domestic news, attention today was drawn to the suspension of trading in Konzum shares until 13:00, following Agrokor’s announcement regarding the acquisition of Konzum shares and the obligation to publish a takeover offer.
