Crobexes Fall, Possible Instability of the Entire Market

On the Zagreb Stock Exchange on Wednesday morning, Crobexes fell, with the most trading occurring in HT shares, while trading in shares of companies from the Agrokor group has been suspended until the consequences of the resignation of the extraordinary commissioner on the extraordinary administration process are clarified.

The Crobex index was down about 0.4 percent at around 10:30 AM, at 1,847 points, while Crobex10 was down 0.5 percent, at 1,068 points.

Regular trading amounted to approximately 1.7 million kuna.

The most liquid was HT’s share, with a turnover of about one million kuna, with its price falling by 0.9 percent to 166 kuna.

>>>Zagreb Stock Exchange Suspends Trading of Agrokor Companies’ Shares Until Crisis Resolution

HT reported this morning a net profit for 2017 of 863 million kuna, which is 7.5 percent less than the previous year.

The Management and Supervisory Board proposed to the general assembly a dividend distribution of 6 kuna per share, which will be paid from the net profit of 2017, amounting to a total dividend payout of 490 million kuna. The proposed dividend is the same as for the previous two years.

>>>HT’s Revenues Increased by 11 Percent Last Year, Net Profit Fell by 7.5 Percent

Following in liquidity is Valamar Riviera’s share, with a turnover of about 200,000 kuna, and its price fell by 0.2 percent to 41.40 kuna.

Among the most liquid issues, the price of Končar Elektroindustrija’s share also fell by 2 percent to 705 kuna, while among the biggest gainers was Tehnika’s share, with a price increase of more than 9 percent to 118 kuna.

Trading in Agrokor Companies’ Shares Suspended

The Zagreb Stock Exchange suspended trading in shares of companies from the Agrokor group this morning before opening, until the issuers confirm or deny information about the resignation of the extraordinary commissioner and inform the public about the consequences of his resignation on the extraordinary administration process.

>>>President: Agrokor Has Exhausted the Government, We Are All Dealing with Firefighting

Trading has been suspended for shares of Zvijezda, Ledo, Jamnica, Žitnjak, PIK Vinkovci, and Vupik.

Agrokor confirmed on Wednesday that the extraordinary commissioner Ante Ramljak submitted an irrevocable resignation to the Prime Minister.

“Together with my associates and employees of Agrokor, I stabilized the business, preserved employment, prevented the collapse of suppliers, and created the conditions for creditors to negotiate a settlement to the end. Unfortunately, the uncertainty created regarding my stay as the extraordinary commissioner strongly works against this process. I am submitting my irrevocable resignation as extraordinary commissioner so that I do not personally become an obstacle to reaching a settlement,” Ramljak explained the reason for his resignation.

>>>Ramljak: The Resignation is Irrevocable, I Do Not Want to Become an Obstacle to Reaching a Settlement

Analysts today expected instability on the Zagreb Stock Exchange, given the new crisis in Agrokor.

“I expect instability in the prices of shares of companies from the Agrokor group, and if there are any upheavals in the government, there could be instability in the entire market. Instabilities in political and economic life always harm the stock market,” said Roman Rinkovec, a broker at the investment company Credos.