Highlights:
- Severe damages were seen on Monday, the CROBEX plummeted 6.4%
- T-HT interested in HT Mostar
- Dalekovod starts construction work on Ernestinovo-Pecuh electricity transmission
- Magma: Seven new shops opened last week
- Major shareholder of Elektropromet sees bankruptcy as best solution
market comment:
Strong pessimism continued to dominate on the Croatian equity market on Monday, resulting in a panic sell-off. The market suffered severe losses, as the crisis in the financial sector in the US and Europe deepens. The market recorded a total of HRK 62mn in regular turnover, with an additional HRK 11.8mn in block transactions (with shares of shipping company Atlantska plovidba and tobacco company Adris). The CROBEX plummeted 6.4%, the most in more than five years, to 2,777 points, its lowest level since July 2006. The great majority of stocks traded on the market recorded losses, with only three winners among the 50 most liquid stocks. The biggest drops among high turnovers were seen in the shipping sector, particularly by Tankerska plovidba (-11.1%) and Uljanik plovidba (-10.2%), as well as frozen foods producer Ledo (- 11.3%). T-Hrvatski Telekom, the most liquid stock on Monday, dropped 3.9% to its new all-time low. Chemical company Petrokemija was the only winner among high turnovers, advancing 0.9%.
market outlook:
The Croatian equity market will most likely be influenced by movements on the world equity markets.
Corporate news:
T-HT interested in HT Mostar
T-Hrvatski Telekom, the biggest telecom operator in Croatia, is interested in acquiring a majority ownership stake in Bosnia-Herzegovina telecom operator HT Mostar, according to reports in the Croatian media, citing Sinisa Duranovic, director of corporate communications at T-HT. Duranovic said that T-HT intends to utilize its right to be the first buyer of the government’s stake in HT Mostar, in the case the privatization conditions are acceptable. The government of Bosnia-Herzegovina has not yet decided on the model of further privatization, weighing whether to keep the controlling package in the company. T-HT already holds a 39.1% stake in HT Mostar, the third biggest local telecom operator.
Dalekovod starts construction work on Ernestinovo-Pecuh electricity transmission line
The Croatian press reports on the start of construction work on a transmission line from Ernestinovo near Osijek to the Hungarian border. Even though the Croatian Electrical Utility (HEP) signed a contract with Dalekovod in November 2007, the first construction activity started yesterday. The value of the contract is HRK 159mn and involves the construction of two 400kw transmission lines. The work is estimated for completion at year-end 2009, with the operational start planned for 2010.
Magma: Seven new shops opened last week
Retail company Magma announced on Monday that it opened seven new shops last week. The company opened three new Magma Home shops in Osijek, Split and Varazdin, Turbo Limac and Turbo Sport shops in Varazdin and two fashion shops in Zadar. The company plans to open four more shops in October.
Major shareholder of Elektropromet sees bankruptcy as best solution
In an interview in the Croatian daily press, the major shareholder of Elektropromet, Michael Ljubas (with a 26.5% stake in the company), sees bankruptcy as the best solution for the company. The company's account has been blocked for more than a week, which is an obstacle to regular business activity. The current unfavorable situation can be resolved in three ways, according to Ljubas. One of the solutions is to take a bank loan, which is an unlikely scenario. The other two ways out are selling real estate in Novalja and Zadar worth around HRK 30mn or bankruptcy, which is advocated by Ljubas. In opposition to Ljubas is a group of small shareholders that do not share his opinion on an emergency exit.
Crobex (chart, table)
Top 10 Turnovers (table)
Top 5 Winners (table)
Top 5 Losers (table)
Croatian Equity Daily (table)
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To view the original document, please click on the link below:
http://reports.aiidatapro.com/CBB/ErsteSecurities/Daily_07_10_2008.pdf
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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
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Daily 07 10 2008.pdf, 193 Kb
