Million Trading Volume of Petrokemija and HT Shares

Due to the summer holiday season, calm trading is expected today on the Zagreb Stock Exchange, while investors will focus on the business results of companies.

All 6 analysts from brokerage firms who participated in the Hina survey expect stagnation of the Crobex today.

The indices broke a three-day negative streak yesterday, with Crobex strengthening by 0.77 percent to 1,843 points, and Crobex10 by 1.03 percent to 1,039 points.

The rise in the index was primarily contributed by a jump in the share price of Atlantic Group by 8.15 percent, following the announcement of business results for the second quarter, which showed a 3.3 percent increase in sales revenue to 2.42 billion kuna, and earnings before interest and taxes up by 5.2 percent to 219 million kuna.

The regular trading volume amounted to 7.8 million kuna, which is one million kuna less than the previous day.

The highest trading volume was achieved by HT shares, at 1.4 million kuna, with a price decrease of 0.66 percent to 175 kuna.

A million trading volume was also achieved by Petrokemija shares, with a price increase of 3.25 percent to 226 kuna.

The government yesterday granted consent to the Agency for Management of State Property (AUDIO) to participate in the recapitalization of Petrokemija, and instructed the relevant bodies to initiate the process of selecting a strategic partner for the company, in which the state would retain at least 25 percent plus one share.

“I do not expect higher trading today, as it is the summer period and investors are on vacation, while the Crobex may stagnate. Solid business results from Valamar and Termes Group could be more in focus for investors, as well as the government’s announcement regarding participation in the recapitalization of Petrokemija,” emphasizes Hrvoje Lacmanović, investment advisor from Centar Bank.

From business news, this morning Adris Group announced that in the first six months of this year it achieved a post-tax profit of 38.4 million kuna, a decrease of 71.2 percent compared to the same period last year.

Total revenues of Adris Group amounted to 1.37 billion kuna, or 3.6 percent less.

The majority of revenues come from sales, which decreased by 3.8 percent to 1.18 billion kuna. Half of the sales revenue from goods and services was generated from exports, of which almost 60 percent in the highly demanding EU market.

Adris also states that earnings before tax, interest, and depreciation amounted to 214 million kuna, which is 7.7 percent lower than last year. The group’s operating profit is 24 million kuna, and profit before tax is 108 million kuna.

From macroeconomic indicators, the State Bureau of Statistics will publish data on industrial production for June today, and macroeconomists expect a decline for the third consecutive month.

Four macroeconomists who participated in the Hina survey estimate that industrial production in June fell by an average of 3.0 percent compared to the same month last year. All expect a decline between 2.5 and 3.5 percent.

On foreign exchanges, cautious trading is taking place ahead of important macroeconomic reports and Fed announcements, following a two-day meeting of its leaders.

On Wall Street on Tuesday, the Dow Jones weakened by 0.01 percent, while the S&P 500 strengthened by 0.04, and the Nasdaq index by 0.48 percent.

In Europe, however, the most important indices slightly weakened this morning following the announcement of a decline in sales in German retail in June.

– Today, key reports are expected, including on U.S. GDP, the ADP agency on employment in the U.S., and a statement from the Fed meeting, which will influence the further movement of the most important global stock indices – concludes Lacmanović.