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The Market Remains the Same – Low Turnover and Stagnant Indices

Today, calm trading is expected on the Zagreb Stock Exchange, as there are no significant business news, and the summer, typically dry period in the domestic market is approaching, when investor activity weakens.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 4 expect stagnation of the Crobex today, while 3 anticipate an increase. The Crobex index strengthened by 0.17 percent yesterday, reaching 1,884 points, while the Crobex10 weakened by 0.09 percent to 1,071 points. The regular turnover in shares amounted to 9.65 million kuna, which is 3 million less than on Friday.

More than a third of the turnover was achieved by shares of Valamar Adria Holding. Their price increased by 0.35 percent to 142.61 kuna.

The HT share recorded a turnover of 1.6 million kuna, with a price increase of 0.37 percent to 209.78 kuna.

Investors focused on certain issues from the construction sector. The share of Tehnika rose by 3.88 percent after the announcement that a consortium, in which Tehnika is the leading member, signed a contract worth 10.18 million euros for the construction of a water treatment plant in Sisak.

On the other hand, the share of Dalekovod recorded a price drop of 1.69 percent. The company reported that a joint meeting of the Management Board and the Supervisory Board will be held on June 3, where the Management’s decision to convene an extraordinary General Assembly will be discussed, with an agenda that includes a decision to authorize the Management to increase the share capital with cash contributions up to 60 million kuna by issuing new shares with a nominal value of 10.0 kuna per share within 5 years from the registration of the decision.

– In the domestic market, everything is the same – turnover is low and indices are stagnant – as there are no news to stimulate greater investor activity. I expect similar trading today; the only question is with what sign the Crobex will end the day – says Ana Franin, financial analyst at Raiffeisenbank Austria.

On foreign exchanges, however, indices are recovering after last week’s losses.

This morning, stock prices on Asian exchanges have risen, recovering some of the losses from previous days, but trading is cautious as the start of trading on Wall Street is awaited after yesterday’s holiday.

On European exchanges, the main indices are also in the positive this morning.

– After last week’s statements from Fed leaders that monetary incentives in the US could soon be reduced, trading on foreign exchanges is very cautious – concludes Franin.