ZSE: Stagnation of Crobex, focus on stocks of companies that publish results

At the Zagreb Stock Exchange on Thursday, stagnation of Crobex is expected, as there are no significant news that would stimulate more active investor engagement, while the focus may be on the stocks of companies that publish financial results for the past year.

All 5 analysts who participated in the Hina survey today expect stagnation of Crobex.

>>> ZSE: Focus on stocks of tourism companies

The Crobex index fell by 0.69 percent on Wednesday, to 1,851 points, while Crobex10 decreased by 0.72 percent, to 1,071 points. Regular trading volume amounted to 5.04 million kuna, which is about one and a half million kuna less than on Tuesday.

“On a fairly calm day, the main stock indices ended yesterday’s trading in the red. We predict their stagnation today, along with the usual level of trading volume,” says Mišo Kalajžić, head of the brokerage trading department at Splitska banka.

The most liquid was the preferred share of Adris, with a turnover of 1.3 million kuna. Its price weakened by 1.83 percent, to 430 kuna.

Next was the share of Tehnika with a turnover of 739.6 thousand kuna and a price drop of 30.36 percent, to 117 kuna, making it the biggest loser. Tehnika reported a loss in 2017 of 141.8 million kuna, compared to a net profit of 926 million kuna achieved the previous year, highlighting that the negative business result was particularly influenced by the write-off of receivables from companies in the Agrokor group.

>>> The negative impact of Agrokor last year led Tehnika to a loss of 141.8 million kuna

A slightly higher turnover was achieved by HT, with 430 thousand kuna, and its price increased by 0.60 percent, to 167.50 kuna. In block trading, this share achieved 2.5 million kuna, at the same price as in regular trading. In modest trading, the price of Optima Telekom shares rose the most among the more liquid ones, by 2.88 percent, to 2.5 kuna.

European stock prices also rose yesterday. The London FTSE index strengthened by 0.64 percent, to 7,213 points, while the Frankfurt DAX rose by 1.17 percent, to 12,339 points, and the Paris CAC by 1.10 percent, to 5,165 points.

“One of the main reasons for investor optimism was the release of data on industrial production and GDP growth in the eurozone, indicating a continuation of positive economic trends,” emphasizes Kalajžić.

On Wall Street, the Dow Jones jumped by 1.03 percent on Wednesday, to 24,893 points, while the S&P 500 rose by 1.34 percent, to 2,698 points, and the Nasdaq index by 1.86 percent, to 7,143 points.

“The strong growth of the indices is primarily attributed to the technology and financial sectors, although data on an unexpected decline in retail sales was also released yesterday. Investors currently have significant confidence in the technology sector, primarily due to the business results of leading companies, while the financial sector, especially large banks, expect a significant increase in their revenues and profits in the event of an increasingly likely rise in interest rates,” concludes Kalajžić.