Dioki soars to 27 kuna, Varteks down 6.5 percent

On the Zagreb Stock Exchange, indices are down today, with Dioki’s shares being the biggest winner and also the most liquid, while Varteks’ shares are the biggest loser.

The Crobex index was down 0.68 percent around noon, at 1,840 points, while Crobex10 was down 0.97 percent, at 1,052 points.

The regular turnover in shares amounted to 3.77 million kuna, which is 1.77 million more than yesterday at this time.

-Crobex has been hovering around 1,840 points for three days, where its 200-day moving average is located. Given the pronounced negative sentiment in the domestic market, it is possible that it will break that support level as well, says Siniša Gašparević, investment advisor in the Treasury and Investment Banking Sector of Splitsko-Dalmatinska Bank.

If it breaks that level, there may be an extreme situation in the market, i.e., panic selling, which could sharply lower Crobex by a few percentage points, estimates Gašparević.

-In that case, Crobex could find support around 1,817 points, where buying would strengthen again, along with greater price volatility. As the date of EU accession approaches, Crobex could begin to recover. The first resistance level is the 20-day moving average, which is currently around 1,880 points, estimates Gašparević.

The most liquid stock is Dioki, with a turnover of 632,000 kuna by noon. With a price jump of 13.29 percent, to 26.86 kuna, it is also the biggest winner.

Following in liquidity is HT’s stock, with a turnover of 511.5 thousand kuna and a price drop of 0.42 percent, to 209 kuna.

The biggest loser in stocks is Varteks, whose price fell by 6.56 percent, to 20.10 kuna.

-While Crobex has been sliding for about 60 days, foreign exchanges have been in correction for about a week, notes Gašparević.

On European exchanges, stock prices are down today, as investors are concerned about the possibility that the Fed will reduce monetary stimulus to the U.S. economy. Currently, the Frankfurt DAX, Paris CAC, and London FTSE indices are down between 0.4 and 0.8 percent.

In business news, the management of the Poreč company Riviera Adria has called a General Assembly of shareholders for July 24, at which it will propose an increase in share capital by 52.2 million kuna, without issuing new shares, through the conversion of retained earnings from last year.

After the increase, Riviera’s share capital would amount to 1.118 billion kuna, and it will remain divided into 106,546,340 ordinary shares with no nominal value.

Additionally, the management will propose to shareholders a decision to withdraw Riviera’s ordinary shares from listing on the Zagreb Stock Exchange, with the obligation of the company to buy back all shares at fair compensation.

The price of Riviera’s shares fell by 2.53 percent by noon, to 13.51 kuna.

Meanwhile, the State Bureau of Statistics today published the first estimate according to which retail trade turnover, achieved by all business entities engaged in that activity regardless of their predominant activity, nominally increased by 2.3 percent in April compared to the same month last year, while it fell in real terms by 0.6 percent.

This is a smaller decline than expected. Four macroeconomic institutions that participated in the Hina survey, on average, expected a decline in consumption in April compared to the same month last year of 1.3 percent. Their estimates ranged from a decline of 3.8 percent to an increase of 0.8 percent.

This marks the 14th consecutive month of declining consumption, but at a slower pace than in March, when retail trade turnover, according to seasonally adjusted data, fell by 2.1 percent.