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Intensified Trading Expected for Ericsson NT Shares

Today, uncertain trading is expected on the Zagreb Stock Exchange, with investors focusing on the financial results of domestic companies and macroeconomic data, while global stock prices are declining.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 4 expect stagnation of the Crobex today, 2 expect a decline, and 1 expects an increase.

The Crobex index rose by 0.76 percent yesterday, to 1,930 points, while the Crobex10 increased by 0.35 percent, to 1,082 points. Regular trading volume amounted to 24.5 million kuna, which is almost double compared to the previous day.

The highest turnover was achieved by the shares of Ericsson Nikola Tesla, amounting to 5.4 million kuna. Its price weakened by 1.07 percent, to 1,480 kuna.

The company reported a net profit of 126.9 million kuna last year, which is 353 percent higher than in 2001. The Management and Supervisory Board proposed a dividend payout totaling 170 kuna, the same as last year, with 20 kuna as regular and 150 kuna as extraordinary dividend per share.

“In yesterday’s trading, a remarkable turnover was achieved by the shares of Ericsson Nikola Tesla, which was primarily in focus due to the dividend. In the coming months, until the general assembly scheduled for May 28, we can expect intensified trading of this stock,” says Tamas Nagy, a broker at Erste&Steiermaerkische Bank.

After yesterday’s rise of the Crobex, Nagy expects market stabilization today.

“Today, I expect stagnation of the Crobex. Declines on foreign exchanges should not significantly affect investor sentiment in the domestic market, as they are focused on the financial reports of domestic companies and the further development of the economic situation in the country,” Nagy notes.

However, he emphasizes that if sales of shares on foreign exchanges intensify in the coming days, it is possible that some negative sentiment will spill over to the domestic market.

On Wall Street, the S&P 500 index recorded its largest daily drop in the last three months on Wednesday, as investors were discouraged by the possibility that the U.S. central bank might reduce or completely eliminate its bond-buying program.

The Dow Jones fell by 0.77 percent, while the S&P 500 dropped by 1.24 percent, and the Nasdaq index by 1.53 percent.

Rumors about problems with a hedge fund, which is reportedly selling its assets, also negatively impacted the market. Stock prices sharply fell this morning on Asian and European exchanges as a result. Among important domestic news, data from the State Bureau of Statistics on unemployment and inflation rates are expected today.

Five macroeconomists who participated in the Hina survey estimate that the unemployment rate in January rose on average from 21.1 percent, which was the rate a month earlier, to 21.9 percent.

If the estimates of macroeconomists for January prove accurate, it would be the highest unemployment rate since July 2002, when it was 22 percent.

At the same time, macroeconomists estimate that consumer prices increased on average by 5.6 percent year-on-year in January, primarily due to rising energy and food prices.

This would be the highest inflation rate since October 2008, when it was 5.9 percent.