ZSE: Is HT Continuing Its Recovery?

Today, a calm trading session is expected on the Zagreb Stock Exchange as investors await the release of financial reports from domestic companies, which will intensify at the end of this week and the beginning of next week.

Of the 6 analysts from brokerage firms who participated in the Hina survey, 4 expect stagnation of the Crobex today, while 2 expect an increase. The Crobex index rose by 1.26 percent last week, reaching 1,850 points, while Crobex10 increased by 1.80 percent to 1,041 points. Both indices are at their highest levels since mid-June. The regular trading volume amounted to 73.6 million kuna, which is about 21 million more than a week earlier.

The highest regular trading volume last week was achieved by HT shares, amounting to 19.6 million kuna. After touching a historically low level of 169 kuna on Monday, its price recovered, jumping 8.5 percent on a weekly basis to 183.54 kuna. Significant trading also occurred with Valamar Adria Holding shares, which recorded a turnover of 5.5 million kuna, with a price increase of 1.20 percent to 157.90 kuna. The shares of Ina were also in focus for investors, with a turnover of 2.3 million kuna and a price increase of 0.9 percent to 4,300 kuna.

– Primarily thanks to HT shares, whose price is recovering after hitting a historically low level on Monday, the Crobex indices rose by more than one percent last week. The trading volume is modest, summer-like, but if block transactions are included, it averaged around a ‘decent’ 13 million kuna daily – says Anto Augustinović, senior capital market analyst at Erste & Steiermaerkische Bank. Last week, Podravka began the season of publishing business results for companies. The price of that company’s shares rose by 3.4 percent to 243 kuna, with a turnover of 1.4 million kuna.

– We expect a more intense release at the end of this week and the beginning of next week. Financial reports will be the biggest market driver, so I do not expect significant market movements in the coming days, except as a reaction to business results – emphasizes Augustinović. On global stock exchanges, share prices rose last week as Federal Reserve Chairman Ben Bernanke indicated that the central American bank would maintain a loose monetary policy for some time, and the season for publishing business reports has been good so far. On Wall Street, the Dow Jones index strengthened by 0.5 percent to 15,543 points, while the S&P 500 rose by 0.7 percent to 1,692 points, marking new all-time highs.

European stock prices also rose last week. The London FTSE index increased by 1.3 percent, while the Frankfurt DAX rose by 1.4 percent and the Paris CAC by 1.8 percent.

– On foreign exchanges, the main driver will also be the financial reports of companies, but the latest macroeconomic indicators will also be monitored, primarily from the US real estate market and PMI activity indices in the eurozone – concludes Augustinović. On Wednesday, the release of the PMI index for the industrial sector of the eurozone is expected, with investors anticipating a slight increase in the index, but still below 50 points, a level indicating weakness in activity.

In the US, investor attention will be drawn to data from the real estate market and the report on durable goods orders scheduled for Thursday. Markets will also monitor the meeting of eurozone finance ministers on Thursday.