Investors Eagerly Await Financial Report Releases

Today, a calm trading session is expected on the Zagreb Stock Exchange, with stagnation in the Crobex index as there are currently no encouraging domestic news. However, given the positive sentiment in global markets, it is possible that the indices will end the day in positive territory.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation in the Crobex today, 1 expects an increase, and 1 expects a decrease. The Crobex weakened by 0.21 percent yesterday, closing at 1,928 points, while the Crobex10 fell by 0.42 percent to 1,072 points.

Regular trading volume reached 19.9 million kuna, which is about 6 million less than the previous day. Of this, 3.78 million kuna was achieved through a block transaction of Jadranka shares, priced at 420 kuna.

Following in trading volume is the HT share, with 3 million kuna and a price drop of 0.2 percent to 216.50 kuna. The Valamar share was also in greater focus for investors, increasing by a further 2.4 percent. Since the beginning of the week, the price of this share has risen by about 15 percent.

-I expect a relatively calm Friday in the domestic market. It is possible that due to the good sentiment in foreign markets, the Crobex will stagnate today with a positive sign. Investors are eagerly awaiting the release of financial reports from domestic companies, which will determine the further direction of market movements, says Maja Bešević Vlajo, portfolio manager at Podravska banka.

She adds that tourism companies could report solid business results due to a successful tourist season; the question is whether the expected revenue growth will be accompanied by an increase in profitability. Besides the shares of Jadranka and Valamar, other tourism shares were also actively traded yesterday.

The Arenaturist share achieved a trading volume of 804,000 kuna, with its price rising by more than three percent. The Rivijera share, on the other hand, saw its price increase by just over 4 percent, while the Maestra share rose by 8.5 percent.

On Wall Street, stock prices fell on Thursday as investors were once again concerned about the economic situation in the Eurozone after European Central Bank President Mario Draghi stated that a gradual recovery of the economy in that bloc is expected in the second half of the year, but that negative risks outweigh the positive ones.

The Dow Jones index weakened by 0.30 percent, while the S&P 500 slid by 0.18, and the Nasdaq index by 0.11 percent.

However, this morning, stock prices rose on Asian and European exchanges as investors were encouraged by data showing strengthening in the Chinese economy.

In January, China’s exports rose by 25 percent compared to the same month last year, exceeding expectations and marking the largest increase since April 2011. This indicates a strengthening of foreign demand.

China’s imports also rose more than expected, by 28.8 percent, indicating a strengthening of domestic demand and a revival of industrial activity.

-After yesterday’s consolidation of gains in foreign markets, a positive sentiment may prevail today. Investor optimism has been bolstered by the latest data from China, concludes Bešević Vlajo.