Minister Dashes Investors’ Hopes

After the Crobex indices slipped from their highest levels in 15 months yesterday, cautious trading is expected today on the Zagreb Stock Exchange, with investors focusing on Petrokemija shares as hopes for the privatization of the company have faded.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation today, while 2 anticipate a decline in the Crobex. The Crobex index weakened by 0.03 percent yesterday, to 1,876 points, while the Crobex10 fell by 0.08 percent, to 1,050 points.

Regular trading volume amounted to 23.4 million kuna, which is 2 million more than the day before. During the day yesterday, the Crobex indices reached new highs since September 2011, but their gains faded by the end of the day.

The highest turnover, 6.1 million kuna, was achieved by Petrokemija shares, and after jumping more than 8 the day before, the price of the company’s shares fell by 5.3 percent, to 246.95 kuna. Minister of Economy Ivan Vrdoljak stated yesterday that there are currently no plans for the privatization of this Kutina company, although the company’s situation is unsustainable in the long term.

“Today I expect stagnation of the Crobex, and investors will continue to focus on Petrokemija shares, following yesterday’s statement from the Minister of Economy. I believe that daily trading volume will also be increased, higher than the average in the last three to four months, as it seems that investor interest in shares has returned,” says Matko Bošković, broker and investment advisor at Centar banka.

Yesterday, four more shares made it to the millionaire list. With a turnover of 1.8 million kuna, the price of Ingra jumped by 9.5 percent, to 4.70 kuna.

Shares of HT achieved a turnover of more than 1.7 million kuna, with a price increase of 0.37 percent, to 212 kuna, while Tisak shares had a turnover of 1.6 million kuna, with a price increase of 3.40 percent, to 210 kuna.

The price of Valamar Adria Holding shares, however, recorded a decline of 1.48 percent, to 119.70 kuna, with a turnover of 1.4 million kuna.

There are currently no new news from the domestic economic scene that could direct the market, while cautious trading continues on global exchanges.

On Wall Street yesterday, the Dow Jones and S&P 500 indices rose slightly, thanks to stronger-than-expected consumer growth, but the Nasdaq index again came under pressure from the decline in Apple shares.

On most Asian exchanges, stock prices fell this morning as investors were concerned about a World Bank report that sharply reduced its growth forecast for the global economy this year. Today’s trading on European exchanges also began with a decline in stock prices.

“In recent days, trading on global exchanges has been cautious, with quarterly business reports from companies in focus for investors. Today and tomorrow, several large American companies and investment banks will release financial reports, which could significantly impact the markets,” concludes Matko Bošković.