Are profit-taking sales following on the ZSE?

The Zagreb Stock Exchange could see the Crobex continue to rise today for the fourth consecutive day, but cautious trading is also possible, given that the index has gained nearly 9 percent since the beginning of the year.

Of the 8 analysts from brokerage firms, 6 expect stagnation of the Crobex today, while 2 anticipate an increase. The Crobex index strengthened by 0.34 percent yesterday, reaching 1,891 points, while Crobex10 rose by 0.61 percent to 1,058 points. These are new highest levels for these indices since September 2011. Regular trading in shares reached 14.9 million kuna, approximately half of the previous trading day’s volume.

The most liquid stock yesterday was HT, with a turnover of 1.8 million kuna and a price increase of about 1 percent, to 215.6 kuna. The shares of construction and tourism companies were in greater focus for investors. In this context, the shares of Hidroelektra niskogradnje increased by 6.5 percent, IGH by 4.13 percent, Viadukt by 3.97 percent, Arenaturist by 4.44 percent, HUP Zagreb by 1.81 percent, Valamar Adria Holding by 1.11 percent, and Liburnia Riviera Hotels by 0.78 percent.

– With positive sentiment from abroad, the Crobex indices are rising in the domestic market, thanks to reduced investor risk aversion. Additionally, investors are positioning themselves ahead of the announcement of companies’ business results for the last quarter of the previous year. Therefore, the rise of the Crobex could continue today – says Ana Franin, financial analyst at Raiffeisenbank Austria.

However, Franin notes that after a prolonged period of gains, it would not be unusual for profit-taking sales to follow. Since the beginning of the year, both indices are up nearly 9 percent – Crobex has risen by 8.7 percent, and Crobex10 by 8.9 percent.

– On foreign exchanges, cautious trading is expected today, following several days of rising stock prices prompted by indications that a political agreement on the U.S. budget could soon be reached. Investors are looking for new directions from the release of financial reports from several companies, as well as the ZEW index of confidence in Germany and the eurozone – Franin states.

On Wall Street, there was no trading yesterday due to the holiday, while Asian stock prices rose this morning. However, on European exchanges, the main indices are slightly down this morning.