ZSE: Crobexes Under Pressure Due to Decline in Global Stock Prices

At the Zagreb Stock Exchange, Crobexes may find themselves under pressure for the third consecutive day, primarily due to the decline in stock prices on global markets, while there are no domestic news that would positively influence investors.

All 7 analysts from brokerage firms who participated in Hina’s survey expect stagnation of the Crobex today.

For the second day in a row, the Crobex index weakened by 0.32 percent yesterday, to 1,825 points, while Crobex10 fell by 0.41 percent, to 1,032 points.

The regular turnover in shares amounted to 9.3 million kuna, which is about 2 million less than the day before.

Million kuna turnover was achieved only in the shares of Končar Elektroindustrije and AD Plastika. The price of Končar’s shares fell by 0.28 percent, to 700.13 kuna, while AD Plastika’s shares increased by 0.77 percent, to 123.95 kuna.

The shares of HT achieved a turnover of 612 thousand kuna, and their price fell by 0.45 percent, to 178.51 kuna.

“I expect a negative sentiment in the domestic market today, influenced by movements in foreign exchanges. However, given the weak liquidity, it is possible that Crobexes will only stagnate with a negative sign. In any case, it is evident that they have not had the strength to rise for some time,” emphasizes Maja Bešević Vlajo, portfolio manager at Podravska banka.

Despite a series of news about INA ahead of the start of negotiations between the Government and MOL next week regarding changes to the shareholder agreement and other important issues, the price of the domestic oil company’s shares has not fluctuated significantly.

Since the beginning of the week, it has been moving in the range of 4,250 to 4,300 kuna and has not reacted significantly even after speculation earlier in the week that the Government is discussing a possible sale of shares with the Russian Rosneft, nor after yesterday’s news that MOL could sue the state for not taking over INA’s gas business, which it committed to do in 2009.

Meanwhile, investors on foreign exchanges have been cautious in recent days, following several days of rising stock prices.

On Wall Street, the S&P 500 index slightly fell on Thursday, after seven days of continuous growth, as investors decided to take a break.

The Dow Jones weakened by 0.17 percent, while the S&P 500 slid by 0.34, and the Nasdaq index by 0.24 percent.

Asian stock prices also fell this morning for the second consecutive day, as investors are cautious ahead of next week’s Fed meeting, where monetary stimulus measures will be decided.

“Caution has prevailed on foreign exchanges after several days of index growth. Investors are restrained ahead of next week’s Fed meeting and decisions on monetary stimulus,” concludes Bešević Vlajo.