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Primorac: We will again offer citizens investment in government debt

Nagrade Zagrebačke burze, Marko Primorac
Nagrade Zagrebačke burze, Marko Primorac / Image by: foto Ratko Mavar

The issuance of the national bond in spring, and in autumn of the national treasury bill, has significantly increased the number of citizens participating in the capital market, and due to positive experiences, the Ministry of Finance intends to offer citizens investment in government debt in the coming years. This was stated by Finance Minister Marko Primorac at the 12th Zagreb Stock Exchange Awards ceremony held today in Zagreb. Moreover, the Ministry of Finance received the ZSE award for its contribution to the development of the capital market due to the inclusion of the national bond and ‘treasury bill’ at the ceremony.

As Primorac emphasized, the issuance of the national bond is the largest investment by citizens in a government security since Croatia’s independence. The fact that 16,500 new accounts were opened at the Central Clearing and Depository Company (SKDD) due to investments in the bond is evidence of how many new investors have entered the market, and when including the opening of accounts for the national treasury bill, the number of new participants in the capital market rises to a total of 27,000, said the minister. Primorac stated that the Ministry will continue to offer citizens investment in government debt in the future, and for easier distribution, this will be done through a special digital channel.

Regarding the stock market year coming to an end, according to the words of the CEO of the Zagreb Stock Exchange Ivana Gažić, it began with fears of recession and inflation, which marked the first six months. However, the second half of the year was significantly better, with excellent trading in August, so the exchange management is very satisfied with the rest of the year. – We are pleased with the trend of rising stock prices; of the 11 sector indices, only the construction sector index is in decline. Other indices record growth of 20 to 30 percent, while the industrial sector index jumped 60 percent – emphasized Gažić.

She also particularly highlighted the inclusion of the government bond and treasury bill as events that will make this year occupy a special place in the history of the domestic capital market. Jurica Jednačak, a member of the Management Board of the Croatian Financial Services Supervisory Agency (Hanfa), recalled how last year the investment sentiment significantly fell, resulting in a 5 percent drop in the value of CROBEX. – At the end of this year, we can say that the fears with which we entered 2023 were unfounded. CROBEX has grown by 25 percent, and the market capitalization of 39.2 billion euros is the largest in the last five years – emphasized Jednačak.

Unfortunately, there were no company listings on the stock exchange, although this year it has been shown that there are investors, emphasized the representative of the financial regulator. For 2024, Jednačak announced the implementation of the MiCA regulation on cryptocurrency markets, which will be, as he said, challenging even for much larger countries than Croatia. Additionally, next year the Capital Market Development Strategy will also see the light of day.

Podravka awarded for stock of the year

The central part of the event was the awarding of the annual Zagreb Stock Exchange Awards. Podravka was the laureate in two categories, for the Stock with the highest turnover and for the Stock of the Year according to the public’s choice. Receiving the award for Stock of the Year, CEO Martina Dalić emphasized that in an efficient market, all information is available to all investors. – This recognition indicates that the market has done its job of distributing information, which is what we do at Podravka – added Dalić.

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Zagreb Stock Exchange Awards, Martina Dalić

photo Ratko Mavar

The award for the stock with the highest price increase went to Hrvatska poštanska banka, and its CEO Marko Badurina reminded that the bank received the award for the highest turnover last year. – This is the result of excellent business results in 2022 and 2023 – emphasized Badurina.

This year, Span was awarded for the highest turnover increase, and CEO Nikola Dujmović, upon receiving the award, emphasized that the introduction of the euro had the greatest positive impact this year on the operations of this technology company.

As Member of the Year, the investment company Interkapital Securities was awarded, and CEO Matko Maravić stated that although he is still not satisfied with the level of turnover on the Zagreb Stock Exchange, the supply of securities is increasingly satisfactory. The Zagreb Stock Exchange Academy Award was given to Professor Edita Čulinović-Herc, head of the Department of Commercial Law and Company Law at the Faculty of Law, University of Rijeka.

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Zagreb Stock Exchange Awards: Nikola Dujmović, Marko Primorac, Martina Dalić, Matko Maravić, Edita Čulinović Herc, Marko Čižmek and Marko Badurina

photo Ratko Mavar

– This award is certainly a great incentive for further scientific and teaching activities in that direction. Systematically and vigilantly monitoring changes in European legislation, proposing solutions for Croatian law, educating new generations of students in the spirit of investment culture in the capital market, and exchanging experiences and being ready to learn from legal and financial experts from practice – emphasized Čulinović-Herc.

As part of the awards, this year the PwC Award for Building Public Trust was also presented, which has been awarded since 2018. The aim of the award is to recognize and reward companies that stand out for their clarity and transparency in reporting to their stakeholders. This year’s award was given to Valamar, while HPB was awarded for the greatest progress in transparent reporting.

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