Wednesday, 6 October 2021

Zagreb Stock Exchange: Crobex Indices Stable

ZAGREB, 6 Oct, 2021 - The main Zagreb Stock Exchange (ZSE) indices increased on Wednesday, the Crobex by 0.03% to 2,033 points, its highest level since February 2020, and the Crobex10 by 0.01% to 1,245 points, its highest level since March 2017.

Regular turnover was HRK 13.5 million. Another HRK 4.5 million was generated in a block transaction with Atlantic Group stock at HRK 1,550 per share.

The most traded stock in regular trading was Valamar Riviera, turning over HRK 3.6 million. It closed at HRK 31.2 per share, down 0.95%.

Forty-nine stocks traded today - 20 gaining in price and 13 losing, while 16 were stable.

(€1 = HRK 7.486388)

For more about business in Croatia, follow TCN's dedicated page.

Wednesday, 6 October 2021

Croatian Bureau of Statistics: New record Jump in Industrial Producer Prices

ZAGREB, 6 Oct, 2021 - Croatia's industrial producer prices jumped by 12.1% in September 2021 compared with the same month in 2020, their highest rise since January 2011, according to the data released by the National Bureau of Statistics.

This was the seventh month in a row to see an increase in industrial producer prices on an annual level, following the 9.3% rise in August.

The positive streak began in March this year with an annual rise of 3.5% and was followed by increases of 5.8% in April, 7.6% in May, 7.2% in June and 7.9% in July. 

The rise was mainly driven by energy prices. Excluding energy, producer prices in September were 0.5% higher than in August and 3.5% higher than in September last year.

On the foreign market, industrial producer prices in September 2021 increased by 1.0% compared with August 2021 and by 10.1% compared with September 2020. On the domestic market, they rose by 3.2% month on month and by 13.7% year on year.

Broken down by main industrial groupings, in September compared with August, prices of energy on the domestic market increased by 9.4%, prices of capital goods by 0.5%, prices of intermediate goods by 0.4%, prices of durable consumer goods by 0.1%, and prices of non-durable consumer goods by 0.1%.

On an annual level, prices of energy on the domestic market rose by 42.2%, prices of intermediate goods by 6.2%, prices of durable consumer goods by 2.5%, prices of capital goods by 2.5%, and prices of non-durable consumer goods by 1.2%.

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Tuesday, 5 October 2021

Zagreb Stock Exchange Indices Close Mixed

ZAGREB, 5 Oct, 2021 - The main Zagreb Stock Exchange (ZSE) indices closed mixed on Tuesday, with the Crobex gaining 0.26% to reach 2,032 points and the Crobex10 shedding 0.23% to end the day at 1,245 points.

Turnover at the close of the trading session was HRK 14.7 million, which is 10.9 million higher than on Monday, and as many as six stocks passed the turnover mark of one million kuna.

The stock of the Valamar Riviera hotel company turned over HRK 2.2 million, closing at HRK 31.5 per share, up 3.3%.

The Podravka food company followed with a turnover of HRK 1.9 million. The price of its share fell by 3.27% to HRK 650.

The Koka poultry processing company saw the price of its share jump by 6.72% to HRK 470, turning over HRK 1.82 million.

The Atlantska Plovidba shipping company turned over HRK 1.77 million, with the price of its share increasing by 3.0% to HRK 550.

Telecommunications equipment manufacturer Ericsson Nikola Tesla saw the price of its share drop by 0.29% to HRK 1,710, turning over HRK 1.5 million, while the HT telecommunications company turned over HRK 1.4 million, with the price of its share remaining unchanged at HRK 190.

A total of 41 stocks traded today, with 21 of them recording price increases, 11 registering price decreases and 9 stagnating in price.

(€1 = HRK 7.490910)

For more about business in Croatia, follow TCN's dedicated page.

 

Thursday, 30 September 2021

Petrinja Container Business Centre Breathes Life into Post-Quake Town

September 30, 2021 -The New Life Centre is a Petrinja container business centre offering locals the chance to go back to their businesses as the town still awaits the completion of its post-earthquake reconstruction.

The container settlements of Petrinja, the aftermath of the December 29 earthquake, are certainly not a cheery place to live as the locals await the reconstruction of their Central Croatian town to be completed.

The reconstruction process isn't over just yet, but the spark of hope for a new, better life after a tough year can be seen with the opening of the New Life Centre.

''The New Life Centre is a cluster of new, painted containers that have been stacked for months in Petrinja's neighbourhood of Sajmište,'' as described by Miroslav Šantek, the author for the local website PS-Portal. The first traders, workers, and craftsmen have already settled in, happy for a taste of near normality.

PS-Portal states that this idea was suggested by the Voice of Entrepreneurs Association (Udruga Glas Poduzetnika) to the then-mayor of Petrinja, Darinko Dumbovic.

''The idea was accepted, and then work on the infrastructure began. But, in typical Croatian fashion, there are always setbacks. The obvious lack of money slowed down the progress. Then came new town administration and new mayor Magdalena Komes who cooperated with the Croatian Government and got 30 million kuna to continue the construction of the centre,'' explained PS-Portal.

The deadlines, however, have been breached and it is uncertain when the Petrinja container business centre will actually be finished.

Nonetheless, business owners who could no longer wait for the complete conclusion of construction set up their businesses and started to work as the state aid dried out, and they wanted to go back to making a living for their families.

As PS-Portal continues, yesterday's opening morning was cold, but there was joy on that small square of container settlements. Citizens of Petrinja can now enjoy the offer of a big international cosmetic chain, but also smaller shops, a pizzeria, and grill diners run by local entrepreneurs.

Despite the lack of a grand opening due to ongoing construction works, Mayor Komes still visited and talked to entrepreneurs who started their businesses. She explained that the increase of construction material and the lack of construction workers are the reason for delays in the Petrinja container business centre's completion.

''Numerous Petrinja-based entrepreneurs lost their space to work after the earthquake. They worked in containers or in the few rental spaces one could find in the almost destroyed town. This modular centre is designed as a space for everyone who has lost theirs,'' writes Glas Istre.

The December earthquake in Petrinja, as well as the March earthquake in Zagreb, caused lots of problems for the residents of these areas. As TCN previously wrote, after a whole year of slow reconstruction progress, Croatian PM Andrej Plenković promised to speed up the reconstruction processes in September. Back in July, several education institutions got financial support for reconstruction, while museums, such as the School Museum in Zagreb, still awaits help.

The dreadful experience of the earthquake in Sisak, Zagreb, and Petrinja also woke up Croatian artists, such as Miroslav Arbutina Arba. You can see his photos of the Sisak earthquake in the Zagreb Contemporary Art Museum exhibition until October 10.

Not too far from Petrinja is Lonjsko Polje Nature Park, and you can learn more about it in our TC guide

For more about entrepreneurs in Croatia, follow TCN's dedicated page.

Wednesday, 29 September 2021

Zagreb Stock Exchange: Podravka Again Most Traded Stock

ZAGREB, 29 Sept, 2021 - The Zagreb Stock Exchange (ZSE) Crobex index on Wednesday decreased by 0.21% to 1,983 points, while the Crobex10 increased by 0.03% to 1,126 points.

Regular turnover was HRK 13.3 million.

Again, the most traded stock was the Podravka food company, which turned over more than HRK 4 million, closing at a record-high HRK 636 per share, up 1.3%.

Podravka has been recording an increase in turnover for three weeks, during which time its shares have mainly been bought by the Pivac meat industry, which holds 3.18% of Podravka's equity.

Forty-four stocks traded today, with 12 increasing in price and 20 decreasing, while 12 were stable.

(€1 = HRK 7.489688)

For more about business in Croatia, follow TCN's dedicated page.

Wednesday, 29 September 2021

Expectations For Croatia's Economy Close to Pre-Pandemic Level

ZAGREB, 29 Sept, 2021 - Expectations for Croatia's economy in September 2021 came close to the pre-pandemic level, supported by confidence in services and retail trade, while consumer confidence was down, a European Commission report said on Wednesday.

In September 2021, the Economic Sentiment Indicator (ESI) in Croatia went up 0.7 points on the month to 112.7, its highest level since February 2020, just before the pandemic broke out, when it was  at 113 points.

Services and retail trade confidence saw the highest increases, by 3.3 and 3 points, respectively, while industry confidence increased by 0.4 points.

Construction confidence decreased by 0.8 points and consumer confidence by 1.6.

Business leaders said they planned to intensify hiring in the coming period, resulting in a 0.9 point increase of the Employment Expectations Indicator (EEI) to 111.5, a record high since 2019.

Optimistic European consumers

In September 2021, the ESI remained unchanged in the EU (at 116.6) and broadly stable in the euro area (+0.2 points to 117.8).

Construction confidence went up by 1.8 points in the EU and by 2 points in the euro area, while consumer confidence went up by 1.1 points in the EU and by 1.3 in the euro area.

Industry confidence remained unchanged in the EU and marginally improved in the euro area.

Retail trade confidence decreased by 2.8 points in the EU and by 3.3 in the euro area, while services confidence decreased by 1.4 points in the EU and by 1.7 in the euro area.

The EEI increased further (+1.0 point to 113.6 in the EU and +0.8 points to 113.6 in the euro area).

For more about business in Croatia, follow TCN's dedicated page.

Wednesday, 29 September 2021

Finance Minister Zdravko Marić: Only Those That Meet All Criteria Will Get Money From NPOO

ZAGREB, 29 Sept, 2021 - Finance Minister Zdravko Marić told a press conference on Wednesday that the money from the National Recovery and Resilience Plan (NPOO) would be granted only to those that met all the criteria.

The European Commission on Tuesday disbursed €818 million to Croatia in a pre-financing payment under the Recovery and Resilience Facility (RFF), which is equivalent to 13% of the country's total financial allocation under the RRF.

Marić said that the government had agreed the pace of expenditure and implementation of reform and investment measures. He said he expected at least 50 projects to be prepared by the end of the year, adding that they concerned digital transformation and the transition to green transformation in the industrial sector. 

"Who will get these funds will depend on tenders and fulfilment of the criteria," the finance minister said.

He announced tenders for the construction of kindergartens and schools, and said that individual projects, such as development of autonomous vehicles by the Rimac company, were also important.

Before the end of this year or early next year, there will be additional tenders for the award of grants for energy efficiency and further green transformation, and some of the funds will also go towards post-earthquake reconstruction, he said.

Asked about the possibility of Croatia losing some of the money because of problems with public procurement, Marić said that public procurement must be efficient because "projects are subject to deadlines, and speed and efficiency are the key."

He noted that the Croatian public procurement law is the most complicated in the EU and needs amending.

Asked who can apply for NPOO funding, Marić said that in the context of the manufacturing industry those would be small and medium-sized businesses, notably those that would contribute to green and digital transformation.

"Funds will be disbursed to all those that fulfil the criteria and requirements," he said, adding that funds would also go towards development of the telecommunications network.

"This 13 percent of the allocation has now been paid, the next €700 million will be paid by the middle of next year and a further 700 million by the end of next year. We need to carry out 34 measures until the end of this year. Some have already been implemented, while some have certain risks," Marić said.

"The next tranche will depend on how many measures have been fulfilled. If we fulfil all 34 measures, €700 million will come in, and if we don't, there will be a certain correction to this amount," Marić concluded.

For more about politics in Croatia, follow TCN's dedicated page.

Wednesday, 29 September 2021

Zagreb Holding Group Reduces Losses to HRK 60.8m in H1

ZAGREB, 29 Sept, 2021 - The Zagreb Holding Group had a loss of HRK 60.8 million in the first six months of 2021, which is significantly less in comparison to the H1 2020, when the loss amounted to HRK 139.6 million, the group's financial statement released on the Zagreb Stock Exchange on Wednesday indicate.

The Zagreb Holding Group comprises the Zagreb Holding d.o.o., which is completely owned by the City of Zagreb and its 14 branches and 8 companies and institutions.

The Group's total revenue in the first six months of 2021 amounted to HRK 2.02 billion, which is 7% more year on year, whereas expenditure amounted to HRK 20.8 billion or 3% more.

Revenue from business operations amounted to HRK 1.96 billion, or 7.4% more y-o-y, as a result of economic recovery.

The most significant growth in the Group's revenue was generated in the energy sector and the supply and distribution of gas, primarily through expanding new distribution areas and an increase of 11% in the delivery of gas supplies.

At the same time, material costs and the cost of services increased by HRK 28.2 million or 3%.

The Group's results are still largely impacted by losses in the Čistoća - city waste collection service which registered a loss of HRK 85.7 million in H1.

At the end of June, the Group had 7,765 employees. Personnel costs in H1 amounted to HRK 611 million or HRK 12 million more than last year.

The Group's investments reached HRK 146.5 million, with an additional HRK 26.2 million invested in the construction of public premises.

 There were 7,765 employees on the group+s payroll at the end of June.

(€1 = HRK 7.489688)

For more about politics in Croatia, follow TCN's dedicated page.

Tuesday, 28 September 2021

Zagreb Stock Exchange Main Indices Up For Second Straight Day

ZAGREB, 28 Sept, 2021 - The main Zagreb Stock Exchange (ZSE) indices went up on Tuesday, the Crobex by 0.43% to 1,987 points and the Crobex10 by 0.47% to 1,216 points, while regular turnover was HRK 11.5 million.

The most traded stock was the Podravka food company, turning over HRK 2.55 million. It closed at HRK 628 per share, up 1.95%.

Forty-one stocks traded today, with 19 going up in price and ten going down, while 12 were stable.

(€1 = HRK 7.491414)

For more about business in Croatia, follow TCN's dedicated page.

Tuesday, 28 September 2021

North of Croatia Seeing Growing Number of Foreign Workers - Večernji List Daily

ZAGREB, 28 Sept, 2021 - A growing number of foreign workers are coming to work in the north of Croatia as local metal, manufacturing and construction companies have difficulty finding labour on the domestic market, Večernji List daily said on Tuesday.

Workers are coming from the Philippines, Ukraine, Nepal, India and elsewhere and there are already so many of them that there is a shortage of accommodation for them. They are staying in hotels, holiday apartments or rented accommodation, the newspaper said.

In the Međimurje region, more and more old and renovated houses in which no one has lived for years are being rented. A 200 square metre house is rented to four persons for HRK 3,200 (€425) a month, or HRK 800 (€105) per person.

"We have been well received. We don't go out much. After work, we go to our flat and watch television. Sometimes we go to the lake or to the nearest cafe for a cup of coffee," says a Ukrainian who has found a job in the catering industry. He shares the rent with a workmate, and earns twice as much as he would in Ukraine. He plans on going to Germany one day.

"There are almost no young workers available on the domestic market, notably in occupations such as bricklayers, carpenters or rebar workers. These occupations are dying out in this region," a CEO was quoted as saying.

The question of whether an inclusive centre should be opened has been raised in Varaždin County. The county's head, Anđelko Stričak, said that the local economy would have difficulty functioning without foreign labour and that the foreign nationals living and working in the region should be looked after.

Nearly 57,000 work and residence permits have been issued to foreign nationals in Croatia this year, the newspaper said.

For more about business in Croatia, follow TCN's dedicated page.

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