ZSE: Ericsson Nikola Tesla in Focus of Investors

In the absence of significant corporate news, a calm trading day is expected on the Zagreb Stock Exchange today, with the stock of Ericsson Nikola Tesla potentially attracting more investor attention as the day approaches when investors’ rights to participate in the dividend payout will expire.

All 7 analysts from brokerage firms who participated in the Hina survey expect stagnation of the Crobex today. The Crobex index weakened by 0.18 percent yesterday, to 1,918 points, while Crobex10 fell by 0.01 percent, to 1,076 points.

Regular trading volume amounted to 8.24 million kuna, which is approximately 2 million less than on Friday.

The highest turnover was achieved by HT shares, at 1.89 million kuna, with a price decrease of 0.05 percent to 208 kuna.

Following is the preferred share of Adrisa, with a turnover of 1.14 million kuna, and a slight price increase of 0.2 percent to 295.10 kuna.

The stock of Ericsson Nikola Tesla was also in greater focus, with a turnover of 930,000 kuna and a price drop of 0.13 percent to 1,530 kuna.

– I expect calm trading and index stagnation on the domestic market today as there are no new corporate news. By the end of the week, the stock of Ericsson Nikola Tesla could be at the top of the most traded list due to the approaching date of the dividend payout rights expiration – emphasizes Ana Franin, financial analyst at Raiffeisenbank Austria.

Ericsson NT is paying a dividend in the gross amount of 170 kuna per share, which implies a gross dividend yield of 11.11 percent. The ‘ex-dividend’ date is May 17.

Among the important news, today marks the start of the program to stimulate the sale of newly built apartments on the market POS plus by the Ministry of Construction and Physical Planning, aimed at ‘thawing’ the sale of 20,000 new apartments and thus helping builders and buyers.

Through POS plus, all Croatian citizens will be able to purchase new apartments directly from investors, contractors, or legal entities in the VAT system. The highest purchase price for which a loan is approved is 1,400 euros per square meter of usable apartment area including VAT, while the public funds loan is 200 euros per square meter in all cases.

– I do not expect this program, at least at this stage, to have an impact on the shares of the construction sector. Investors will likely prefer to wait for its results. Additionally, not all construction companies have equally developed businesses in apartment construction; Tehnika is the most involved in this business – notes Franin.

On foreign exchanges, trading is cautious after indices reached record levels. Thus, on Wall Street on Monday, leading indices remained almost unchanged as investors are cautious after the S&P 500 reached a record level on Friday, and even better-than-expected retail sales data did not prompt them to buy.

The Dow Jones weakened by 0.18 percent, while the S&P 500 remained unchanged at 1,633 points.

Asian markets also traded cautiously this morning, and European investors are restrained at the start of today’s trading.

– Investors on foreign exchanges are waiting for the release of the ZEW index of confidence in the Eurozone and Germany for May today. Throughout the rest of the week, a series of important macroeconomic indicators will be released, which could determine movements in the stock markets – concludes Franin.