Crobexes on the Path of Mild Losses for the Second Consecutive Week

Today, a lethargic trading session is expected on the Zagreb Stock Exchange, similar to previous days, while the Crobexes are on the path of mild losses for the second consecutive week.

All 6 analysts from brokerage firms who participated in Hina’s survey expect stagnation of the Crobex today. The Crobex index strengthened by 0.12 percent yesterday, to 1,835 points, while Crobex10 increased by 0.28 percent, to 1,034 points.

These indices are on track for a weekly loss. The Crobex is down 0.32 percent since the beginning of the week, while Crobex10 is down 0.39 percent. The regular turnover of shares amounted to 8 million kuna yesterday, which is approximately 3.5 million more than the day before.

A million kuna turnover was achieved only by the shares of Vira, at 1.3 million kuna, with its price falling by 1.61 percent, to 610 kuna.

The shares of Ericsson Nikola Tesla achieved a turnover of about 900,000 kuna, with its price dropping by 0.66 percent, to 1,500 kuna. With a turnover of about 840,000 kuna, the shares of Đuro Đaković Holding decreased by 5.5 percent, to 58.55 kuna.

“There are not many news items in the domestic market these days, so trading is lethargic. Today could be similar, with the focus likely on the usually most liquid issues,” says Maja Bešević Vlajo, portfolio manager at Podravska banka.

Indices on foreign exchanges are also stagnating, as investors cautiously await new U.S. macroeconomic indicators.

On Wall Street, stock prices rose for the third consecutive day on Thursday. However, only slightly, as investors are cautious ahead of the employment report in the U.S. that could influence the Fed’s decision on stimulus monetary measures.

The Dow Jones increased by 0.04 percent, while the S&P 500 rose by 0.12, and the Nasdaq index by 0.27 percent. As a result, both Asian and European investors are on alert.

“Investors are monitoring news regarding Syria and a possible military attack by the U.S. on that country. Macroeconomic indicators will also be in focus, especially the employment report in the U.S., which should provide key guidance to investors this afternoon,” concludes Bešević Vlajo.

Fed leaders, who will meet in the middle of this month, have repeatedly indicated that they might reduce the programs for purchasing government and mortgage bonds, which have long supported the rise in stock prices, if the economic situation, particularly in the labor market, improves.

Therefore, the government’s employment report, which will be published in the afternoon, is eagerly awaited.

In a Reuters survey, analysts estimate that in August, the number of employed increased by 180,000, up from 162,000 in July, while the unemployment rate could remain unchanged at 7.4 percent, the lowest level in four years.