Zagreb Stock Exchange: Investors in Stocks Reacted Weakly to Business Results

The deadline for companies listed on the Zagreb Stock Exchange to publish their business reports for the first six months of this year expired on the last day of July. Most did so in the last week of July, but the published business results of major domestic companies did not significantly impact stock trading, neither positively nor negatively – investors in stocks generally did not react to either excellent or poor company results.

Exceptions are very rare, and one of them is Plava laguna, for which it can be stated that the semi-annual report directly influenced the rise of its stock. On the day the report was published, the price of its stock rose from 312 to 316 euros, and the next day to 333 euros. It is evident that investors highly valued the fact that the Management of Plava laguna, led by Dragan Pujas, managed to reverse the trend of operating losses typical for hoteliers in that part of the year and achieve a profit in the first half of the year. Even more important for investors is the information from the report about realized capital investments of 15.7 million euros, primarily in camps, which is quite a good guarantee that the business result in the second half of the year will increase even more compared to last year.

The fact that Zagrebačka banka achieved 250 million euros in profit (an increase of 81.2%!) on the day the report was published resulted in a rise of its stock by only 0.42%, and the next day an unexpected drop in its value by 0.83%. However, in the following four days, its value began to rise again, so a week after the report was published, Zabina’s stock increased by a total of 4.3%. This is not insignificant, but it is not as much as would be expected given the bank’s business results.

The record for stock value increase on the day of the report publication is held by Čateks, whose stock jumped by 9.8% that day, but at a symbolic level of trading.