After breaking the magical barrier of 3000 points at the beginning of the week, the stock index of the Zagreb Stock Exchange is currently climbing unstoppable, reaching its highest level since 2008. The increase in the index was also contributed by the ‘people’s share’ of Hrvatski Telekom (HT), where a significant jump in trading has been noticeable in recent days due to the share buyback program and the additional reduction of the state’s stake in our largest telecom. Trading Thursday marked the sixth consecutive day of growth for the CROBEX, which strengthened by an additional 0.9 percent, stopping at 3037 points.
The domestic stock measure strengthened by two percent this week, raising this year’s CROBEX growth to 20 percent. If they maintain this pace for the rest of the year, Croatian stocks could achieve an annual growth of over 25 percent in 2024. Recall that in 2023, the Croatian stock index recorded a jump of 28 percent. Other stock indices of the Zagreb Stock Exchange achieved even better results. The narrower CROBEX10 is up 24 percent this year, and the profitability of investing in domestic stocks this year is best illustrated by the CROBEXtr index, which accounts for paid dividends. This measure has jumped by 23.5 percent in the current part of 2024.
Among the important components of the index, specifically those with a weight above seven percent, the stocks from the Končar group stand out this year. The price of Končar – Elektroindustrija has sensationally jumped by 126 percent this year and is now sought at 422 euros on the stock exchange. On Thursday, Končar, with a growth of 4.5 percent, was among the issues leading the price increase, after rising more than seven percent on Monday. The regular stock of Končar – Special and Distribution Transformers has also doubled its value in 2024 to the current 1760 euros, but it has not contributed as much to the CROBEX jump. Namely, it was included in the index on March 18 after a regular revision. During that period, it strengthened by a significantly modest 25 percent.
Uninteresting Duo for Investors
Among other ‘heavyweights’ in the CROBEX, Zagrebačka banka and HT have increased by 35 and 30 percent this year, while the tourist company Valamar Riviera achieved a significantly modest growth of seven percent. The Adris group, part of whose business consists of tourism, has not particularly shone this year – the price of its preferred stock has risen by less than six percent and is around 60 euros. On the other hand, the food industry has not been in favor with investors in Croatian stocks this year, as the value of Atlantica has fallen by seven percent, and Podravka by 5.8 percent.
