Decrease of concerns over Greek’s, rise of Chinese export and euro appreciation positively reflected on European equity markets today. U.S. stock indices also opened in positive, driven with lower demand for safe heaven assets (U.S. dollar, Treasuries).
Zagreb Stock exchange followed this pattern. CROBEX rose 0.8% to 2,142.6 pts while blue chip CROBEX10 closed at 1,146.9 pts, 0.7% up. Regular stock turnover slightly declined to HRK 23.4 m.
Profit taking on telecom operator T-HT (HTRA ZA) pushed this issue down by 0.6%, on HRK 9.9 m in turnover. Despite today’s decline, T-HT stock remains in overbought territory as its RSI totaled to 79.01 pts. Main cause of high RSI indicator is proposed dividend of HRK 34.05 per share, and dividend yield above 10.0% for T-HT share.
Construction stocks recovered today, after severe losses in past days. Institut IGH (IGHRA ZA) gained 3.5%, Ingra (INGRRA ZA) added 3.3% and Tehnika (THNKRA ZA) rose 3.1%.
Adris Group preferred issue (ADRSPA ZA) rose 1.8% on HRK 1.9 m in turnover, as investor’s awarded TDR’s (Adris’s tobacco Business) success to seize 10.0% of tobacco market in neighboring Serbia. Export growth and construction of EUR 30 m worth tobacco factory in Iran (with projected capacity of 6.5 bn of cigarettes per year) should represent adequate buffer toward increased competition on Croatian tobacco market.
Telecom solutions provider Ericsson Nikola Tesla (ERNTRA ZA) continued upward, adding 0.2% on HRK 2.3 m in turnover. New contracts in orderbook and proposed dividend in amount of HRK 120 per share generated increased demand for ERNT share.
Daily news headlines (more available on www.fima-securities.com):
- Airlines offer to give up slots
- Economic storm not over, says PM
- GDP seen slowing, tying Fed hands on rates
- Turkey and I.M.F. End Talks on Stand-By Loan
- Economic Scene: Wishing for a Health Care Plan That Cuts Costs
- China’s Exports Rise 46%
Kosor: Budget cuts imminent; new measures soon
Croatian PM, Jadranka Kosor, repeated today she was certain Croatia will weather the crisis, stressing that everyone needs to be prepared for reductions. On the one hand, there is constant pressure to reduce budget expenses by "lowering subventions, for example" and on the other hand, everyone criticized the government when this was done in case of agriculture. "This is unacceptable because the government must provide salaries, pensions, social benefits, maternity and unemployment compensations", Kosor explained, adding that anyone who says further cuts are needed must also say what to reduce. PM announced new measures for aiding the economy in a few days, after she meets with employers and sees their proposals. (Source: www.limun.hr original text was published on www.seebiz.eu)
Industrial growth not a sign of Croatia breaking out of crisis
Trying to prove that better days are coming, finance minister Ivan Suker said in a TV show that the industrial output was increased by 1.5 percent in January, after a year of negative trends. Analysts however say the situation is not so promising.Splitska banka’s chief economist Zdeslav Santic says this is certainly not a sign of breaking out of the crisis. The main reason is in a change of methodology, as the Crostat started posting deseasoned data, in line with Eurostat’s recommendations. Looking at original indices, the industrial output in January stagnated. Regardless of the January data, analysts believe industry could stagnate or even record a slight growth in 2010. Given an increase in foreign demand, export-oriented sectors could be the first ones to record a growth, Santic says. This, however, does not mean GDP will recover too. Splitska banka projects a 1.4-percent drop, while HAAB think GDP could fall by more than 2 percent. (Source: www.limun.hr original text was published in Jutarnji list)
Foreign investors holding a third of securities
As much as a third of Croatia’s securities are held by foreign investors. According to the data posted by the Central Clearing & Depository company (SKDD), foreign citizens held 32.6 percent of the total market value of all Croatia’s securities at the end of February. Local natural persons held nearly 11 percent, while local legal persons controlled 47.2 percent. SKDD reports that the total value of Croatia’s securities at the end of February was HRK 291.6bn, which is almost the same level as in January. However, this value needs to be taken with a grain of salt. Out of 994 stocks included by SKDD in this amount, only 270 are listed in the stock exchange (HRK 141.4bn). Other stocks are taken at their nominal value, so the picture could be much different if they would become listed. The share held by Croatian legal persons was slightly increased compared with January, from 47 to 47.2 percent. In a year, the share held by local natural persons was up from 10 to 11 percent, while the share held by foreign investors climbed up 2.6 percent to 32.6 percent. (Source: www.limun.hr original text was published in Poslovni dnevnik)
ZSE STOCK market (table)
CROBEX MOVERS (chart)
CROBEX 3 MONTH MOVEMENT (chart)
LIQUIDITY TOP 5 (table)
market SENTIMENT (table)
MACROECONOMIC PARAMETERS (table)
Croatia LT credit rating (table)
MIDPOINT exchange RATES OF THE CNB (chart)
STOCK / TIME FRAME / PRCE MULTIPLIES / DuPont analysis (table)
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