‘It Seems That Investors Were Not Impressed by Reports on HT’s Electricity Sales’

Today, a calm trading day is expected on the Zagreb Stock Exchange, as there are no stimulating news from either the domestic or global economic scene.

All 7 analysts from brokerage firms who participated in Hina’s survey expect stagnation of the Crobex today. The Crobex strengthened by 0.14 percent yesterday, reaching 1,818 points, while the Crobex10 weakened by 0.35 percent to 1,019 points.

The regular turnover in shares amounted to 5.6 million kuna, which is approximately 2.5 million less than the day before. The highest turnover, 3.3 million kuna, was achieved by HT shares, whose price fell by 0.73 percent to 172 kuna. It seems that investors were not impressed by reports that the company will soon start selling electricity.

On the other hand, the price of INA shares fell by 2.37 percent to 4,120 kuna, with a turnover of 177,000 kuna, following statements from Hungarian government officials about the possible exit of MOL from the ownership structure of INA in the event of unsuccessful negotiations between the Government and MOL.

– I fear that trading on the domestic market will also be calm today, and that the Crobex will stagnate, as there are no stimulating news. On the contrary, we are constantly receiving news regarding weak budget revenues and rising deficits – says Maja Bešević Vlajo, portfolio manager at Podravska banka.

As she adds, negative sentiment from foreign exchanges is likely to partially spill over to the domestic market.

– In the focus of investors, along with the usual most liquid issues, shipping companies could also be found. And soon we will enter the season of company earnings announcements, so investors will likely focus on the results of companies, especially in tourism – concludes Bešević Vlajo.

From macroeconomic indicators, the State Bureau of Statistics will today publish the first estimate of retail trade turnover for August, which, as macroeconomists expect, could rise for the fourth consecutive month.

Five macroeconomists who participated in Hina’s survey expect an average increase in consumption in August compared to the same month last year of 0.6 percent. One expects stagnation, while the others expect growth between 0.5 and 1 percent.

And on Wall Street, stock prices fell significantly on Thursday as investors fear that the stubbornness of Republicans and Democrats in the budget debate will extend to the more critical law on increasing the allowed state borrowing, leading to a sharp rise in the VIX ‘fear index’.

The Dow Jones and S&P 500 indices fell by 0.90 percent, while the Nasdaq plummeted by 1.07 percent. Stock prices are also under pressure this morning on Asian and European exchanges.