It Won’t Be Strange If Investors Decide to Capitalize on Some Gains

In anticipation of financial reports from domestic companies, which should provide new guidance to investors, stable trading is expected today on the Zagreb Stock Exchange.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation of the Crobex today, while 2 expect an increase. The Crobex strengthened by 0.55 percent yesterday, to 1,931 points, while the Crobex10 weakened by 0.03 percent, to 1,076 points.

The most liquid was the HT stock, with a turnover of five million kuna, and a price drop of 1.36 percent, to 217 kuna.

“On the domestic market, tourist stocks were the main focus yesterday, achieving higher price gains. The price of Valamar Adriatic shares reached its highest level in five years, while Arenaturist reached its highest in 4.5 years,” says Tamas Nagy, a broker at Erste&Steiermaerkische Bank.

Valamar’s stock rose by 7.42 percent, to 145.99 kuna, with a turnover of 3.3 million kuna. The price of Arenaturist shares jumped by 11.4 percent, to 165 kuna, while Rivijera’s stock increased by 2.6 percent and Jadranka’s by 2.5 percent.

Further movements in the domestic market will depend, says Nagy, on the business results of companies, primarily blue-chip stocks, whose announcements are expected in the coming days.

“Crobex has had a good start since the beginning of the year, and it wouldn’t be strange if some investors decide to capitalize on part of their gains,” Nagy believes.

Meanwhile, on Wall Street, stock indices remained almost unchanged on Wednesday, as there were no news that could significantly move the market and investors were cautious after stock prices reached their highest levels in five years. The Dow Jones and S&P 500 strengthened by 0.05 percent, while the Nasdaq index weakened by 0.10 percent.

In Asian markets, stock prices fell this morning as investors are cautious ahead of the European Central Bank leaders’ meeting. No change in the key interest rate, which stands at a record low of 0.75 percent, is expected, but President Mario Draghi’s remarks on the economic situation and the strengthening of the euro are anticipated.

“In foreign markets, investors are also inclined to capitalize on realized gains this week, although the situation in the global economy remains relatively stable,” says Nagy. The majority of companies have already announced their business results, and it can be said that there have been no major disappointments, Nagy notes.

“Moreover, most companies expect a good business year, primarily due to the recovery of the economies of China and the Eurozone, as well as the stability of the USA,” concludes Nagy.