ZSE: Is Dioki Continuing Its Free Fall?

Today, uncertain trading is expected on the Zagreb Stock Exchange as there are no stimulating news, and the focus of investors could be on Dioki’s shares, after creditors did not accept the restructuring plan for the company yesterday.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 5 expect stagnation today, 1 expects an increase, and 1 expects a decline in Crobex. The Crobex index fell by 1.17 percent to 1,784 points, while Crobex10 dropped by 0.98 percent to 1,008 points. Both indices are at their lowest level since January 3, when Crobex was at 1,770 and Crobex10 at 986 points.

While at the end of the first quarter, Crobex was up approximately 15 percent compared to the beginning of the year, Crobex is now up only 2.5 percent, and Crobex10 is up 3.8 percent. The regular turnover of shares yesterday amounted to 9.7 million kuna, which is about half a million less than the day before. The most traded was HT’s share, which generated 2.6 million kuna, and its price fell by 1.9 percent to 179 kuna. The biggest loser was, however, Dioki’s share, with a price drop of 28 percent, after creditors did not accept the proposed restructuring plan for the company yesterday.

– There are really no positive news, so I expect stagnation of Crobex today, and possibly a continuation of their decline. The focus of investors could still be on Dioki’s shares today, after the restructuring plan for the company was not accepted yesterday, says Matko Bošković, director of the Investment Banking Division at Centar Bank.

As he adds, there may also be somewhat greater interest from investors in shares of Agrokor’s companies, following yesterday’s signing of the cooperation agreement between Agrokor and Mercator.

Agrokor reported that it has signed a Cooperation Agreement with Mercator, the last step in the realization of the transaction of Agrokor’s purchase of 53 percent of Mercator’s shares. This agreement defines the cooperation between Agrokor and Mercator’s management during the transitional period until the closing of the transaction in which Agrokor will acquire a majority stake in Mercator.

On foreign markets, trading is volatile, while investors await the results of the two-day Fed meeting.

On Wall Street, stock prices rose significantly for the second consecutive day on Tuesday, as investors believe that the U.S. central bank will continue to pursue a very loose monetary policy. The Dow Jones increased by 0.91 percent, while the S&P 500 rose by 0.78, and the Nasdaq index by 0.87 percent. However, on most Asian exchanges, stock prices fell this morning, as investors are cautious ahead of the Fed’s decision. Cautious trading is also taking place this morning on European exchanges.

– Movements in foreign markets lately have not had a significant impact on the domestic market. Investors in foreign markets are waiting for the Fed’s decisions, concludes Bošković.