ZSE: Trading of 69 million kuna in Končar EI shares

On the Zagreb Stock Exchange, Crobex indices are down today for the sixth consecutive day, although shares of construction companies have somewhat recovered and the price of Končar-electroindustry shares has risen by more than 2 percent, with a trading volume of a massive 69 million kuna.

Around noon, the Crobex index was down 0.1 percent, at 1,877 points, the lowest level since mid-January. Crobex10, on the other hand, slipped 0.12 percent, to 1,066 points, the lowest level since early February.

The regular trading volume amounted to approximately 72 million kuna, which is about 70 million more than yesterday at this time, primarily due to trading in Končar-electroindustry shares.

With a trading volume exceeding 69 million kuna, the price of that share rose by 2.5 percent, to 760 kuna.

Following in trading volume is the HT share, around 560 thousand kuna, with its price falling by 0.5 percent, to 209.30 kuna. With a trading volume of around 360 thousand kuna, the share of Ericsson Nikola Tesla decreased by about 1.9 percent, to 1,245 kuna.

Other shares had modest trading volumes.

– There are currently no good news in the domestic market. Companies are in trouble, so pre-bankruptcy settlements and recapitalizations are being conducted at lower prices than those on the market, which is bad for investors, who are already somewhat demoralized – says Siniša Gašparević, investment advisor in the Treasury and Investment Banking Sector of Splitsko-Dalmatinska Bank.

After a strong rise in the first three months, when Crobex indices jumped about 15 percent, the market has stagnated somewhat in April, and Crobex indices have been under pressure for the last six days.

– It has been customary for the domestic market in recent years that at the beginning of the year, stock prices rise sharply, and selling begins as early as March, unlike the American markets, where investors usually decide to take profits off the market in July, ahead of the summer lull on the stock exchange – says Gašparević.

After a sharp decline in recent days, today the shares of construction companies have somewhat recovered, although with thin trading. The price of Dalekovod rose by more than 9 percent, to 30.98 kuna, while the share of the IGH Institute increased by 2.5 percent, to 240 kuna. The prices of Ingra shares also rose, by about 0.9 percent, and Tehnika, by more than 2 percent.

– According to technical analysis, support for Crobex is at the level of 1,875 points, so I expect a rebound of the index. However, as there are no encouraging news, I think it could again find itself on a downward trajectory in the short term, and then it could find support at the 200-day moving average of 1,830 points – says Siniša Gašparević.