ZSE: Modest Liquidity Still Expected

Today, calm trading is expected on the Zagreb Stock Exchange, as the holiday season is still ongoing, which may keep liquidity modest, and there are currently no significant business news that would focus investors’ attention on individual issues.

Of the 7 analysts from brokerage firms who participated in Hina’s survey, 5 expect stagnation of the Crobex today, while 1 expects an increase.

The Crobex index strengthened by 0.56 percent last week, reaching 1,837 points, while Crobex10 increased by 0.50 percent to 1,034 points.

Regular trading in shares amounted to 25.3 million kuna, which is approximately one million kuna more than the previous week.

The highest weekly turnover, amounting to 3.3 million kuna, was achieved by HT shares, with a price increase of 0.47 percent on a weekly basis, reaching 174.01 kuna.

Following is the share of Konzum, with a turnover of 1.5 million kuna, whose price fell by 1.64 percent to 144 kuna.

Among the more liquid issues, the Dioki share stands out with a price increase of 16.3 percent, followed by Solaris shares with a 10.3 percent increase and Imperijal Hotels with 7.7 percent.

On the other hand, the losers include shares of Arenaturist and Liburnija Riviera Holding, with a price drop of 6 percent, and Petrokemija, down by 2.5 percent.

“Last week, Crobexes slightly strengthened, but with extremely modest liquidity. On average, it amounted to 4.5 million kuna daily, which is the lowest level in approximately the last two years,” says Davor Špoljar, senior capital market analyst at Erste&Steiermaerkische Bank.

He adds that such weak turnovers should be attributed to the summer season and the shortened work week due to holidays.

“We are still in the holiday season, so liquidity may remain modest this week as well. Unfortunately, there are currently no significant business news that could draw investors’ attention to individual issues,” emphasizes Špoljar.

Meanwhile, on Wall Street, indices fell last week for the second consecutive week, while in Europe, they strengthened for the third week in a row.

The Dow Jones index fell by 2.2 percent or 344 points last week, marking its largest weekly loss since June 2012, ending the week at 15,081 points.

The S&P 500 index decreased by 2.1 percent on a weekly basis to 1,655 points, while the tech-heavy Nasdaq fell by 1.6 percent to 3,602 points. Both indices recorded their largest weekly loss since June of this year.

At the same time, the Frankfurt DAX increased by 0.64 percent on a weekly basis to 8,391 points, while the Paris CAC rose by 1.15 percent to 4,123 points, and the London FTSE was down by 1.27 percent to 6,583 points.

“The main reason for the decline in indices on Wall Street is the fact that the forecasts of some companies disappointed, while at the same time, U.S. macroeconomic indicators improved, which heightened investors’ fears that the Fed would soon reduce monetary stimulus. On the other hand, the mood on European exchanges is positive, and indices have recorded gains for the third consecutive week, primarily due to the data on the eurozone’s exit from recession,” notes Špoljar.

In the coming days, investor sentiment on global exchanges will be influenced by the minutes from the last meeting of the U.S. central bank, which will be released on Wednesday.

“Investors will also monitor new macroeconomic releases, primarily on Wednesday the data on existing home sales in the U.S., on Thursday the weekly unemployment figures, and the PMI index of industrial activity in the eurozone,” concludes Špoljar.