Petrokemija remains in focus

After Crobex indices reached their highest levels in 15 months yesterday, cautious trading is expected today on the Zagreb Stock Exchange, as there are no new encouraging news from the domestic economy, while trading on global exchanges is restrained.

Of the 6 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation today, while 1 expects an increase in Crobex.

The Crobex index rose by 1.78 percent yesterday, to 1,876 points, which is its highest level since September 22, 2011, when it was 1,877 points. The Crobex10, on the other hand, jumped by 2.05 percent, to 1,051 points, the highest level since September 21, 2011, when it was 1,056 points.

Regular trading in shares amounted to 21.4 million kuna, which is about 7 million more than on Friday and the highest daily turnover since mid-December.

-The domestic market is currently not following movements in foreign markets. Regarding the continuation of trading, I am optimistic, so I expect further significant turnovers and a positive sign ahead of Crobex. The shares of Petrokemija could again be in focus, considering the media reports about a possible privatization of the company. However, caution is advised, and it should be taken into account that Crobex has risen by 7.8 percent since the beginning of the year, so a consolidation of the index in the coming days is also possible, says Maja Bešević Vlajo, portfolio manager at Podravska banka.

Yesterday, four shares made it to the millionaire list, with the highest turnover of 2.4 million kuna achieved by Petrokemija shares. Their price jumped by more than 8 percent, breaking above 260 kuna for the first time since May last year.

The privileged shares of the Adris group achieved a turnover of 2.1 million kuna, with a price increase of 3.65 percent, to 282 kuna. More than two million kuna in turnover was also achieved by HT shares, whose price rose by 0.10 percent, to 211.22 kuna.

Valamar Adria Holding shares achieved a turnover of 1.8 million kuna, and their price increased by 2.10 percent, to 121.50 kuna. Meanwhile, the week on global exchanges started with cautious trading. On Monday, the Dow Jones index on Wall Street slightly rose, while the S&P 500 and Nasdaq weakened due to a sharp drop in Apple’s stock price.

On most Asian exchanges, prices slightly fell this morning as investors are cautious due to the start of the quarterly earnings season for companies and banks, which, according to expectations, will not be particularly bright.

As a result, caution prevails in European markets this morning.

-There has been caution in global markets in recent days, primarily because a discussion has been initiated in the U.S. regarding the limit of permissible government borrowing, which always introduces uncertainty into the market. However, as the most important global stock indices have risen sharply in the last six months, a correction in stock prices would not be unexpected. Besides the discussion on borrowing in the U.S., quarterly earnings results of companies will also be in focus for investors, concludes Maja Bešević Vlajo.