Will Shipping Companies Push Indices Today?

The Zagreb Stock Exchange is expected to see stagnation in the Crobex today, while the focus of investors, as yesterday, may be on the shares of shipping companies due to rising freight rates in the global market.

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

The Crobex index strengthened by 0.50 percent yesterday, reaching 1,829 points, while Crobex10 rose by 0.36 percent to 1,030 points.

Regular trading in shares amounted to 10 million kuna, approximately the same as the day before.

The highest turnover was achieved by HT shares, amounting to 2.4 million kuna, with its price increasing by 0.62 percent to 177.25 kuna.

Shares in the shipping sector were the stars of the day due to the further rise in the BDI freight index, which strengthened for the fifth consecutive day to 1,860 points.

As a result, the price of Atlantska plovidba shares rose by 7.34 percent to 380 kuna, the highest level since March 20, 2012.

Tankerska plovidba shares increased by 3.33 percent, Jadroplov by 3 percent, and Uljanik plovidba by 1.11 percent.

 - The Crobex strengthened yesterday mainly due to the rise in prices of shipping shares. A similar scenario is possible today in the domestic market – says Maja Bešević Vlajo, portfolio manager at Podravska banka.

She adds that the rise in shipping share prices is a result of estimates that Brazil’s demand for iron ore imports will strengthen, as well as a strong increase in freight rates.

 - Just yesterday, the BDI freight index rose by two percent, and in the last ten days by more than 14 percent, which positively affects the shares of shipping companies – notes Bešević Vlajo.

Some analysts in Hina’s survey point out that the focus may be on shares that will exit or enter the Crobex composition starting Monday, in accordance with the conducted revision.

Four shares did not meet the conditions to remain in the Crobex – Luka Ploče, Tiska, Viadukt, and Vira – and will be excluded from its composition starting Monday. However, two shares – Tehnika and Uljanik plovidba – have met the conditions for inclusion in the Crobex.

Meanwhile, the euphoria on foreign exchanges, triggered by the Fed’s decision to continue implementing a very loose monetary policy, has somewhat calmed down.

On Wall Street, the Dow Jones and S&P 500 indices slipped from record levels reached the day before, when the Fed indicated that it would maintain a loose monetary policy until the economic situation improves.

The Dow Jones fell by 0.26 percent to 15,636 points, while the S&P 500 slipped by 0.18 percent to 1,722 points. The Nasdaq index, on the other hand, rose by 0.15 percent to 3,789 points.

Trading on Asian and European exchanges this morning is cautious.

 - On foreign exchanges, investors will continue to focus on the Fed’s monetary policy and its implications for economic developments. In Europe, the release of consumer confidence data is expected – concludes Bešević Vlajo.