Domestic Stock Indices Strengthened by More Than Five Percent in April

On the Zagreb Stock Exchange, CROBEX indices slightly increased last week, marking the third consecutive week of gains, and are on track for gains of over five percent in April. CROBEX rose by 0.36 percent last week, to 3992 points, while CROBEX10 increased by 0.38 percent, to 2559 points. They have strengthened for the third week in a row and are on track for strong gains in April – CROBEX by 5.2 percent, and the narrower measure by 6.2 percent.

However, the weekly growth was achieved in an environment of lower liquidity. Regular trading volume amounted to 7.64 million euros, about two million less than the previous week. Additionally, nearly 852 thousand euros were achieved in block trading in a transaction with Končar shares, at prices ranging from 790 to 795 euros. In regular trading, the most liquid was Končar shares, which generated 2.85 million euros in turnover, with its price stagnating at 795 euros.

Valamar Votes for Dividend and Share Buyback

Following was Valamar Riviera shares, with a turnover of 1.13 million euros and a price increase of 1.47 percent, to 6.9 euros. The Valamar General Assembly on Thursday decided on a dividend of 27 cents per share, which is three cents or 12.5 percent higher than last year, with payment planned for May 7. Additionally, the assembly adopted a program for the buyback of its own shares until the end of 2026, with a planned amount of 12 million euros, and the maximum number of shares that can be acquired is 2.2 million shares.

Another significant turnover was recorded by the preferred shares of Adrisa, nearly 650 thousand euros, with its price jumping by 2.05 percent, to 89.4 euros. Among the more liquid stocks, the largest price increases were seen in Slatina Bank shares, up 23.7 percent, to 21.4 euros, Alpha Adriatica, up 21.88 percent, to 9.75 euros, and Jadroplov, up 18.92 percent, to 8.8 euros.

The management of Slatina Bank has called a general assembly for June 3, where a dividend payment of 72 cents per share, totaling 648 thousand euros, will be proposed, to be paid to all shareholders registered as owners in the SKDD depository on July 1.

The biggest losers among the more liquid stocks were AD Plastika shares, with a price drop of 3.08 percent, to 25.2 euros, and Lošinjska Plovidba Holding, down 2.33 percent, to 25.2 euros.

Wall Street Continues to Set Records

Last week, global stock exchanges traded cautiously as investors awaited the continuation of peace negotiations between the U.S. and Iran, with European stock prices sharply falling while Wall Street reached record levels. On Wall Street, the Dow Jones index weakened by 0.4 percent last week, to 49,230 points, while S&P 500 strengthened by 0.55 percent, to 7165 points, and Nasdaq by 1.5 percent, to 24,836 points.

On the world’s largest stock exchange, trading was cautious last week. In previous weeks, stock indices had risen sharply, recovering all losses since the beginning of the war in the Middle East, as investors hoped for a quick peace agreement. However, the continuation of negotiations between the U.S. and Iran has not yet been agreed upon, and the situation in the Middle East has not changed significantly for days. Iran is practically blocking oil exports from the Middle East through the Strait of Hormuz, while the U.S. Navy is blocking Iranian ports.

As a result, oil prices are at elevated levels, which is driving inflation. On the other hand, good quarterly business results from companies are supporting the market. Of more than 130 companies and banks in the S&P 500 index that have reported so far, about 82 percent have achieved better results than analysts expected.

Double-Digit Earnings Growth

It is now estimated that earnings for companies in the S&P 500 index in the first quarter have increased by about 16 percent compared to the same period last year. The new record highs of the S&P 500 and Nasdaq indices are primarily attributed to the rise in stock prices of technology companies, on Friday, following news that a U.S. delegation was expected to travel to Pakistan on Saturday for the second round of negotiations with Iran.

However, on Saturday, U.S. President Donald Trump canceled that trip, so it remains to be seen how investors will react to this news on Monday.

While the S&P 500 and Nasdaq reached record levels on Wall Street, stock prices on European exchanges sharply fell last week. The London FTSE index slid by 2.7 percent, to 10,379 points, while the Frankfurt DAX plummeted by 2.3 percent, to 24,128 points, and the Paris CAC by 3.2 percent, to 8157 points.