ZSE: Focus on companies that have achieved solid half-year results

Calm trading is expected on the Zagreb Stock Exchange on Monday, without major fluctuations in the Crobex, following their strong performance last week, while the focus of investors may still be on the issues of those companies that have recently reported solid business results.

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

The Crobex index rose by 2.36 percent last week, to 2,453 points, while Crobex10 increased by 2.64 percent, to 1,445 points. Both indices are now at new highest levels since 2010, since data has been available on the Zagreb Stock Exchange website.

They continued their strong growth at the beginning of August, after also having significant gains in July – Crobex by 2.5 percent, and Crobex10 by as much as 3.2 percent, primarily influenced by solid business results of companies for the first half of the year.

Among sector indices, Crobexnutris had the highest gain, at 2.75 percent, while Crobexindustrija fell the most, by 1.18 percent.

Regular trading volume reached as much as 8.7 million euros, which is 2.5 million more than in the previous week.

– In the domestic capital market, unlike global exchanges, last week was marked by a very good performance of the indices. Although still far from the record levels recorded in 2007, the Crobex indices are now around the highest levels in the last 14 years, primarily influenced by solid business results reported by companies. Among sector indices, Crobexnutris rose the most due to the increase in the share price of Podravka, while Crobexindustrija fell the most due to a significant drop in the share price of Viktor Lenac – says Boris Pevalek, senior capital market analyst at Erste&Steiermaerkische bank.

The most liquid was the share of Zagrebačka banka, with a turnover of almost 1.6 million euros. Its price jumped by 13.33 percent, to a record 13.6 euros. Along with the share of Lošinjska plovidba, which also increased by 13.33 percent, it was the biggest weekly winner.

Following in liquidity is the share of Podravka, with a turnover of 1.37 million euros, which increased by 7.5 percent, to 129 euros, also a record level.

The share of Spana was also in focus for investors, with a turnover of 1.34 million euros, and its price fell by almost six percent, to 66 euros.

The share of Plava laguna also had significant turnover, 644 thousand, with a price jump of 8.33 percent, to 338 euros.

Among the more liquid, the largest price drop was recorded by the share of Shipyard Viktor Lenac, down by 8.2 percent, to 3.36 euros.

On the ZSE last week, a total of 57 shares were traded, of which 24 increased in price, 25 fell, and eight stagnated.

On global exchanges, however, the most important indices fell last week, with the Dow Jones slipping by 1.1 percent, to 35,065 points, while the S&P 500 dropped by 2.3 percent, and the Nasdaq index by 2.9 percent, to 13,909 points.

However, as Pevalek notes, since the beginning of the year they are still significantly up, with Nasdaq up nearly 32.9 percent, the S&P 500 index up 16.6 percent, and the Dow up 5.8 percent.

European stock prices also fell last week. The London FTSE index slipped by 1.7 percent, to 7,564 points, while the Frankfurt DAX plummeted by 3.1 percent, to 15,951 points, and the Paris CAC by 2.2 percent, to 7,315 points.

The decline in global stock markets was likely partially influenced by Fitch’s downgrade of the US credit rating from AAA to AA.

– There have been heated debates about Fitch’s move in the US, but this is not the first time the largest world economy has recorded a downgrade – in 2011, Standard&Poor’s downgraded its rating from the highest level and has not raised it since – emphasizes Pevalek.

In the coming days, as he added, the focus of investors will be on inflation data in the US, measured by consumer and producer prices, and the season of financial report announcements from companies will also be monitored.