ZSE: In Anticipation of Podravka’s Results

Investors are slowly turning to the new season of financial report announcements, which Podravka begins today, thus a slightly higher activity is possible on the Zagreb Stock Exchange, but stagnation of Crobex is still expected.

All 7 analysts from brokerage firms who participated in the Hina survey expect stagnation of Crobex today. Although Crobex spent most of the trading yesterday in positive territory, it weakened by 0.33 percent by the end of the day, to 1,829 points. Crobex10, on the other hand, fell by 0.08 percent, to 1,027 points. The regular turnover of shares amounted to 13 million kuna, which is about 6 million kuna more than the previous day.

The highest turnover was achieved by HT shares, amounting to 7.1 million kuna, with its price jumping by 3.34 percent, to 180 kuna, which is its highest level in the last month. The price of this share is recovering after touching a record low of 169 kuna two days ago.

– In the domestic market, investors are slowly turning to the new season of semi-annual reports, so their slightly higher activity is possible due to positioning ahead of announcements. However, Crobex is likely to continue to stagnate; the only question is with what sign – says Ana Franin, financial analyst at Raiffeisenbank Austria.

Along with the usual most liquid issues, shares of Podravka and Petrokemija could be in focus. Podravka will hold a press conference at 1:00 PM to inform about its semi-annual business results.

Petrokemija, on the other hand, today announced a public call for recapitalization. In the first round, existing shareholders have the right to subscribe to shares, and they can subscribe to a maximum of 1,102,569 shares.

In the second round, the right to subscribe to all remaining shares that were not subscribed and paid for in the first round would be granted to shareholders who subscribed to shares in the first round, while in the third round, new shares would be offered for subscription to all investors.

Shares will be offered for sale in a price range of 170 to 228 kuna per share. The subscription will be considered successful if at least 50 percent of the total amount of the issuance is subscribed and paid, or at least 551,285 shares.

On Wall Street, stock prices rose slightly on Wednesday after Fed Chairman Ben Bernanke stated that no specific deadlines have been set for reducing stimulus monetary measures, but that it depends on the economic situation.

The Dow Jones strengthened by 0.12 percent, while the S&P 500 rose by 0.28, and the Nasdaq index by 0.32 percent.

Asian markets are trading cautiously this morning. While they were calmed by the Fed chairman, they are concerned about the economic situation in China, where the rise in real estate prices in June was lower than a month earlier, but recorded the strongest annual growth this year.

European markets are also trading cautiously this morning due to a series of quarterly business results from European companies that were weaker than expected.

– The focus of investors on European markets these days is the business results of companies. Due to somewhat weaker reports than expected from several companies, it seems that negative sentiment could prevail today – concludes Franin.