Highlights:
- The CROBEX advanced 1.6% on a turnover of HRK 62mn
- War Veterans Fund to sell all INA shares held to MOL
- IGH wins tender for design of Zagreb Airport terminal
- Tehnika wins a new deal worth HRK 45mn
- Croatia Airlines opens new hangar, new contract with Lufthansa Technik
market comment:
The Croatian equity market witnessed lower volatility and recorded mostly positive movements on Wednesday, accompanied by somewhat lower market liquidity levels. The market recorded a total of HRK 62mn in regular turnover, with only 10 stocks exceeding HRK 1mn in turnover. The CROBEX advanced 1.6% to 3,037 points. Majority of stocks traded on the market closed in the green territory, with strong performances seen particularly in the construction and shipping sectors. Strongest gains among high turnovers were posted by shippers Tankerska plovidba (+4.5%) and Atlantska plovidba (+3.3%), as well as constructors Ingra (+3.5%) and Dalekovod (+3.6%). On the other hand, slight negative movements were seen by INA (-0.5%) and Ericsson Nikola Tesla (- 0.1%). Oil pipeline management company Jadranski naftovod was, surprisingly, the most liquid stock on Wednesday, accompanied by its highest turnover in more than 2 years, closing with a 3.6% drop.
market outlook:
Today the market will most likely be influenced by the decision on the U.S. financial sector bailout plan.
Corporate news:
War Veterans Fund to sell all INA shares held to MOL
The management board of the War Veterans Fund accepted at its yesterday session a proposal from Josip Glavas, CEO of investment company Erste Invest, which manages the fund, to sell all INA shares to MOL. The fund holds a 7% stake in INA. Glavas said that maintaining fund liquidity and stability is a priority to the management, considering current conditions on the market. The War Veterans Fund will be considering in the upcoming period where to invest the cash received from the sale of the INA stake, Glavas said, adding that it could probably be conservative securities, such as bonds and deposits.
The decision to sell its entire stake in INA to MOL was not a surprise, since it was the expected and most reasonable option, considering the fund’s investment objectives and the importance of maintaining liquidity. However, although rational in current market conditions, the fund’s intention to invest the cash in bonds and deposits, as announced by Glavas, might be taken negatively by investors on the equity market, who expected a significant portion of the funds to come back to the market and boost liquidity. With a current 259,720 INA shares (2.6% stake in the equity) already on the account (as of yesterday) and an additional 7% from the War Veterans Fund and around 6% from a group of institutional investors, MOL’s takeover of INA could be seen as successful, since it will collect more than a 15% stake in INA, it seems.
IGH wins tender for design of Zagreb Airport terminal
In an international tender for development of a design and project solution for a terminal at Zagreb Airport, Croatian company IGH won first price. An international jury chose IGH's solution among 17 competitors. The overall value of the airport construction amounts to between EUR 280mn and EUR 300mn, while IGH will receive EUR 50,000 as a reward for the best project solution and design. It is estimated that the terminal should be finished by the end of 2012.
Tehnika wins a new deal worth HRK 45mn
Construction company Tehnika won a new deal on finalization of works on a new building for Museum of Contemporary Art in Zagreb, as reported by Poslovni dnenvik . Total value of the deal amounts to HRK 45mn. All works should be finished by spring 2009. Tehnika also applied on a tender for equipping the museum and was the only bidder. However, its offer of HRK 63mn exceeded the budget of the client, so the tender was canceled.
Croatia Airlines opens new hangar, new contract with Lufthansa Technik
The Zagreb Airport opened a new hangar for Croatia Airlines that will serve for the maintenance of their own and planes of other airlines. This strengthens the company's leading regional position in plane maintenance, according to the minister of the sea, transport and development. The company also used this occasion to announce the signing of a contract with Germany’s Lufthansa Technik on further expansion of business cooperation regarding technical service and maintenance. According to the contract, Lufthansa Technik will increase the number of technical examinations done by Croatia Airlines.
The government decided on reduction of gas delivery in winter
The Croatian government passed a regulation on reduction of gas delivery in winter, in case of low temperatures, according to Croatian daily Poslovni dnevnik. The regulation introduces a 7-level plan for reductions. In case the air temperature falls below - 1 degree Celsius, gas delivery will be reduced to biggest gas consumers in Croatia, namely electric utility Hrvatska elektroprivreda, chemical company Petrokemija and INA’s refineries, to 65,000, 60,000 and 10,000 cubic meters of gas per hour.
State to insure saving deposits up to HRK 160,000
The Croatian government proposed some changes in the Law on insurance of deposits, which were sent to the parliament in an urgent procedure, according to reports in the media. The government proposed to increase amount of insured saving deposits from HRK 100,000 to HRK 160,000. The new law comes into force on January 1, 2009, while the regulation on deposit insurance will become fully effective on Januray 1, 2010, Poslovni dnevnik said.
*****
To view the original document, please click on the link below:
http://reports.aiidatapro.com/CBB/ErsteSecurities/Daily_02_10_2008.pdf
*****
Copyright: Erste Securities Zagreb, Croatian Equity Daily, Thursday, May 31, 2007 sales : Zeljka Kajkut-Brni Phone: +385 62 37 2811 kajkutz@erstebank.com Damir Eror Phone: +385 62 37 2813 erord@erstebank.com Research: Damir Cukman Phone: +385 62 37 2820 cukmand@erstebank.com Davor Spoljar Phone: +385 62 37 2825 dspoljar@erstebank.com
*****
AII Data Processing does not endorse in any way, the views, opinions or recommendations expressed above. The use of the Information is subject to the terms and conditions as published by the original source, which you have to read and accept in full prior to the execution of any actions taken in reliance on Information contained herein.
 | SeeNews SeeNews is a business and financial news and information provider which brings its visitors and customers access to detailed coverage on the fast-growing companies, economies and markets of ten Southeast European nations. |
Search for: deal |
Search for: tender |
Search for: market |
Search for: management |
Search for: company |
Search for: sales |
Search for: Croatia |
Daily 02 10 2008.pdf, 192 Kb
