Crobex could stagnate with a positive sign

Cautious trading is expected today on the Zagreb Stock Exchange, as well as on global markets, with investors focusing on the business results of the Atlantic Group for the past year.

All 7 analysts from brokerage firms who participated in the Hina survey expect stagnation of the Crobex today. The Crobex index weakened by 0.48 percent yesterday, to 1,921 points, while Crobex10 fell by 0.39 percent, to 1,078 points.

Regular trading volume amounted to 17.6 million kuna, which is almost 7 million less than the day before.

“After yesterday’s downward correction, the Crobex could stagnate today with a positive sign, as profit-taking sales are calming down on foreign exchanges,” says Maja Bešević Vlajo, portfolio manager at Podravska banka.

Calmer trading is expected at the end of the week, while investors will continue to be focused on financial reports from companies.

“The financial report of the Atlantic Group will be the main focus for investors,” says Bešević Vlajo.

The Supervisory Board of AD Plastika accepted the preliminary financial report for the past year yesterday, along with a proposal for a dividend payout of 4 kuna per share.

At the same time, the Termes Group reported this morning that it achieved a net profit of 80.35 million kuna last year, which is 35.24 percent more than in 2011.

According to the consolidated unaudited report, the total revenues of the group, which includes the Sugar Factory Osijek among others, reached 876.32 million kuna, which is 15.24 percent more than the year before. Of that, 82 percent of revenues were generated in the sugar segment, 6 percent in the milk production segment, 2.5 percent in the pig fattening segment, and the remaining 9.5 percent from the sale of commercial goods.

Total expenses amounted to 795.6 million kuna, which is 22 percent higher.

On foreign exchanges, trading is cautious. On Wall Street, stock prices fell for the second consecutive day on Thursday as it became clear from the latest data that the eurozone economy will not emerge from recession as quickly as investors had hoped.

The Dow Jones fell by 0.34 percent, while the S&P 500 slipped by 0.63, and the Nasdaq index by 1.04 percent.

Data from the U.S. economy also does not inspire confidence. The number of new unemployment claims rose last week more than expected, while the Philadelphia Fed reported that business activity in the central U.S. fell to its lowest level in eight months in February.

All these data, along with the news from the previous day that some leaders of the U.S. central bank advocate reducing the amount for the government and mortgage bond purchase program, have strongly pressured the market.

This morning, cautious trading is taking place on Asian and European exchanges after yesterday’s sharp drop in stock prices, as investors believe that the U.S. Fed will continue to pursue a very accommodative monetary policy despite weak economic data.

“The previous two days, foreign markets fell mainly due to the notes from the Fed meeting, which signaled that the government bond purchase program could be reduced or halted in the second half of the year. However, the latest macroeconomic indicators give investors hope that the Fed will still maintain a loose monetary policy. Therefore, today on foreign exchanges, stock sales could quiet down,” concludes Bešević Vlajo.