Wednesday, 29 June 2022

Crobex Rises for Fourth Straight Day

ZAGREB, 29 June 2022 - Amid careful trading on the Zagreb Stock Exchange on Wednesday, the main indices increased, with the Crobex continuing a four-day rise despite a poor turnover.

The Crobex strengthened by 0.24% to 2,035 points. At the same time, the Crobex10 increased by 0.31% to 1,207 points, increasing for the second day in a row.

Regular turnover amounted to almost HRK 4.6 million, which was 1.6 million less than on Tuesday.

Not one stock crossed the million kuna mark. The most traded was Ericsson Nikola Tesla, turning over HRK 560,000. It closed at HRK 1,815 per share, the same as yesterday.

Twenty-seven stocks traded today, with 9 increasing and 8 decreasing in price, while 10 remained stable.

(€1 = HRK 7.525950)

For more, check out our business section.

Friday, 20 May 2022

ZSE Indices Mildly Rise Amid Modest Turnover

ZAGREB, 20 May 2022 - The main Zagreb Stock Exchange (ZSE) indices -- the Crobex and the specialized Crobex 10 -- rose by 0.39% to 2081.62 points and by 0.37% to 1240.79 points respectively on Friday.

Today's turnover was HRK 4.3 million, a million kuna more than on Thursday.

None of the stocks passed the turnover mark of one million kunas. The highest turnover, HRK 982,300, was generated by the stock of the Valamar Riviera tourism company. It share price rose 2.1% to HRK 34.10 per share.

A total of 40 stocks were traded today, with 15 of them increasing and also 15 decreasing, and 10 remaining stables in price.

(€1 = HRK 7.529183)

For more, check out our business section.

Monday, 16 May 2022

ZSE Indices Slide

ZAGREB, 16 May 2022 - The main Zagreb Stock Exchange (ZSE) indices slid 0.2% on Monday amid cautious trading.

The Crobex decreased by 0.22% to 2,077 points and the Crobex10 by 0.25% to 1,238 points.

The industry index saw the biggest decline, of 0.96%, while the construction index rose by as much as 15.13%, thanks to a jump in the price of the stock of the Institut IGH construction company by nearly 28%, to HRK 110 per share.

Regular turnover amounted to HRK 5.8 million, or HRK 1.1 million less than on Friday.

The only stock with the one million kuna turnover mark was that of the Croatian Postal Bank (HPB), which turned over HRK 1.14 million, closing at HRK 910 per share, down 0.55%.

Forty-one stocks traded on the ZSE today, with 16 registering share price increases, 15 recording price decreases and 10 remaining stable in price.

(€1 = HRK 7.526206)

For more, check out our business section.

Friday, 6 May 2022

ZSE Indices End Week in Red

ZAGREB, 6 May (2022) - The main Zagreb Stock Exchange (ZSE) indices ended the week in red, with the Crobex falling by 0.92% to 2,110 points and the Crobex10 by 0.87% to 1,257 points.

Turnover at the close of the trading session was HRK 10.8 million, about 2.3 million higher than on Thursday. An additional HRK 4.9 million was generated by a block transaction with the Atlantic retail group stock at HRK 1,620 per share.

The Atlantic Group stock also generated the highest turnover in the regular session, of HRK 1.74 million. Its price remained stable at HRK 1,640.

Three more stocks passed the turnover mark of one million kuna.

The Span IT company turned over HRK 1.22 million, closing down 0.82% at HRK 243 per share.

The Valamar Riviera hotel company turned over HRK 1.06 million, ending the day at HRK 34.7 per share, down 2.53%.

The HT telecommunications company turned over HRK 1.05 million. Its price dropped by 0.81% to HRK 182 per share.

Forty-one stocks traded today, with eight of them increasing, 22 decreasing and 11 remaining stable in price.

(€1 = HRK 7.545685)

For more, check out our business section.

Friday, 29 April 2022

Valamar Riviera Sees Strong Increase in Q1 Revenues, Overnights

ZAGREB, 29 April (2022) - The Valamar Riviera hotel company generated HRK 59.5 million in operating revenues in Q1 2022, up 97% year-on-year, with an increase of 147,000 in overnight stays, or 192%, the company said in a financial statement on Friday, announcing a return to the occupancy rate from 2019 this year.

Total revenues reached HRK 74.8 million, up 119% on the year.

"In Q1 2022, Valamar Riviera achieved results comparable to 2019, continuing the positive trend of tourism recovering to the pre-pandemic level," Croatia's largest tourist company said.

In that period, total expenditures reached nearly HRK 314 million, so the group ended Q1 with a loss of HRK 199.85 million.

Investments for the 2022 season in hotels, summer resorts and camps amount to about HRK 530 million and are an important driver of growth and positive expectations, the company said.

Among the largest investment projects is the investment by Imperial Riviera of HRK 67 million in the repositioning of the Dalmacija hotel in Makarska, whose opening is planned for mid-May.

The investments of Helios Faros are worth HRK 220 million and are related to the construction of the Valamar Amicor Green Resort and Aquamar pool complex on the island of Hvar.

Other investments for this season include the renovation of the hotel Corinthia in Baška on the island of Krk in the Valamar brand Sunny Plus, improving service quality at the Valamar Bellevue Hotel in Rabac, the construction of Padova beach on the island of Rab, and the continuation of investments in the camps Istra Premium Camping Resort and Lanterna Premium Camping Resort.

In Dubrovnik, a new Valamar House has opened for the accommodation of seasonal workers, the fifth in Valamar destinations.

"The results achieved in the first quarter and booking trends are encouraging and announce a high demand for Croatia in this tourist season and a return to the levels of occupancy from 2019. Due to a significant rise in energy, labour and procurement prices, there is a risk of inflation, which contributes to uncertainty and difficult business conditions, especially jeopardising the future development and investments that Croatian tourism really needs," said Željko Kukurin, President of the Management Board of Valamar Riviera.

(€1 = HRK 7.5)

For more, check out our business section.

Friday, 29 April 2022

Podravka Food Group's Profit Down 15.6% Due to Ukraine Crisis

ZAGREB, 29 April (2022) - The Podravka Group generated a net profit of HRK 88.8 million in the first quarter of 2022, a decrease of 15.6% over the same period in 2021, the Koprivnica-based food company said in a financial statement on Friday, noting that the direct cause of the decreased profit was the Ukraine crisis.

EBITDA (earnings before interest, tax, depreciation and amortisation) was 7.7% lower while net profit was 15.6% lower than in 2021, which is a direct result of the Ukraine crisis, Podravka said in a press release.

Sales revenue amounted to HRK 1.18 billion, or 8.6% more compared to the same period last year.

The stronger revenue was generated by the food segment (+10.8%), while the pharmaceutical segment registered a growth of 0.6%.

Podravka generated a loss of 6.5% on the Russian and Ukrainian markets in 2021.

The company is continuing with its optimisation of costs and increasing efficiency to buffer the impact of increased input costs.

Podravka further reported that as of 1 March wages had increased by an average of 11% and the company would invest a further HRK 35 million this year to increase wages.

(€1 = HRK 7.557837)

For more, check out our business section.

Friday, 22 April 2022

Main Zagreb Stock Exchange Indices End Week in Red

ZAGREB, 22 April (2022) - The main Zagreb Stock Exchange (ZSE) indices fell slightly on Friday, with the Crobex decreasing by 0.09% to 2,134 points and the Crobex10 by 0.1% to 1,285 points.

Turnover at the close of the trading session amounted to HRK 7.5 million, roughly the same as on Thursday.

Three stocks passed the turnover mark of one million kuna.

The highest turnover, of HRK 1.8 million, was generated by the stock of the Valamar Riviera hotel company. Its price fell by 1.39% to HRK 35.50.

The stock of the HT telecommunications company turned over HRK 1.5 million, closing at HRK 192.5 per share, down 0.26%.

The stock of the state-owned postal bank HPB turned over HRK 1.1 million. Its price increased by 1.08% to HRK 940 per share.

A total of 43 stocks traded today, with 17 increasing, 15 decreasing and 11 remaining stable in price.

(€1 = HRK 7.559050)

For more, check out our business section.

Thursday, 21 April 2022

ZSE Indices Stagnate

ZAGREB, 21 April 2022 - The Zagreb Stock Exchange (ZSE) indices went in opposite directions on Thursday, remaining relatively unchanged, with the Crobex increasing by 0.11% to 2,136 points and the Crobex10 decreasing by 0.1% to 1,286 points.

Regular turnover amounted to HRK 7.5 million, about HRK 4.4 less than on Wednesday.

The only stock to cross the one million kuna turnover mark was the Valamar Riviera hotel company, which turned over nearly two million kuna. Its price went up by 1.4% to HRK 36 per share, its highest level since February 2020.

A total of 42 stocks were traded on the ZSE today, with 23 gainings and nine losing in price, while 10 were stable.

(€1 = HRK 7.554607)

For more, check out our business section.

Friday, 18 March 2022

Zagreb Stock Exchange Indices Continue Rising

ZAGREB, 18 March (2022) - The main Zagreb Stock Exchange (ZSE) indices continued to rise on Friday, with the Crobex going up for the sixth trading day in a row, by 0.4% to 2,050 points, and the Crobex10 increasing for the eighth consecutive trading day, by 0.59% to 1,237 points.

Regular turnover amounted to HRK 11.8 million, or HRK 4.2 million more than on Thursday.

The HT telecom was the most traded stock, turning over HRK 2 million. Its price dropped by 0.26% to HRK 189 per share.

The Optika Telekom stock generated a turnover of HRK 1.99 million, closing at HRK 5.3 per share, up 1.15%.

The stock of the Podravka food company turned over HRK 1.3 million, closing at HRK 628, up 2.95%.

Forty-two stocks traded on the ZSE today, with 20 gaining and 12 losing in price, while 10 were stable.

(€1 = HRK 7.570296)

For more, check out our business section.

Friday, 18 March 2022

Croatian Equity Market: Impact of the Russian Invasion of Ukraine

March 18thund 2020 - An overview of the Croatian equity market and how it reacted to the Russian invasion of Ukraine.

On the 24th of February 2022, a full-scale Russian invasion of Ukraine began. The world was struck and this was also evident when looking at the capital markets which reacted very suddenly and there was a lot of volatility in the markets.

The Croatian equity market can be observed by looking at the benchmark index CROBEX10 which is made up of 10 Croatian blue-chip companies with the largest free-float, liquidity, and market capitalization. CROBEX10 fell by 6,47% on the first day of the invasion falling from 1284.56 to 1201.42. The downward trend has started even before that which is not odd since financial markets are to a large extent forward-looking.  CROBEX10 reached its peak on 19th January at 1342.93 and has from there slipped down to 1152.36 on March 8th, cumulatively falling by 14,19%, and technically speaking entering into a correction phase. From March 8th to March 17th at the time of writing this article CROBEX10 has soared back up by 6,57% and it reached 1228.

 

 

Croatian-Equity-Market-CROBEX10.png

When comparing Croatian CROBEX10 with other European and American market indices we can see that some Indices experienced an even more drastic market sell-off. Most notably Polish WIG fell by 11%, Hungarian BUX fell by 10%, and Slovenian SBITOP and Austrian ATX dropped 7% on the first day of the invasion. 

 

 Croatian-Equity-Market-Market-Indices-Comparison.png

Some of these indices have managed to return near the price levels as before the war while others are still deep in the red zone. As of 17th of March, Austrian ATX is at -9%, Cezch PX and Hungarian BUX at -6% while Croatian CROBEX10 is at -4% compared to their price levels on the 23rd of February.

When looking at CROBEX10 and its 10 constituents we can see that on the first day of the invasion the biggest drop can be seen in Ad Plastik -18%, Atlantska Plovidba -12%, and Podravka -9%.

Croatian-Equity-Market-Market-CROBEX10-Constituents.png

It is interesting to see how the market reacts to an unpredictable event such as this war and it is the best indicator of the extent of exposure these companies have to Russian and Ukrainian markets. As of the 17th of March, most of these companies are near the price levels before the war. Two companies that made an official statement to ZSE and which are clearly exposed to these markets are AD Plastik and Podravka which is also seen in their price level which is currently -33% and -7% respectively, compared to the price levels before the escalation.

AD PLASTIK

Croatian-Equity-Market-ADPLASTIK.png

 

AD Plastik is a Solin-based manufacturer of automobile components. Unfortunately, AD PLASTIK is largely impacted by the Russian Ukrainian war. They have two factories in Russia which together account for around 25% of their revenue according to their statement published by ZSE. These two factories sell exclusively to the Russian market and through them, AD Plastik is exposed to the fluctuation of the Russian Rubble. The AD Plastik share price was falling from the start of the war on the 24th of February until March 7th falling by 44% and whipping out nearly 300 million HRK from their market capitalization. As of 17th March, its share price has scaled up to 105 HRK which is a 20% increase but it is still 33% lower than the share price before the start of the war.

The additional burden was the release of their 2021 financial statements on the 24th of February, which showed a drop in operating revenue by 6.8% and a drop in their EBITDA margin by 273 bps. This is most likely caused by the chip shortage and other supply chain problems in the automobile industry.

On a positive note, on March 9th, they made a public statement announcing a new contract with Stellantis Group and Motherson Group for the European market which are together worth 73,6 million Euros.

PODRAVKA

Croatian-Equity-Market-PODRAVKA.png

Podravka is Koprivnica based food and pharmaceutical company. According to their statement published on ZSE, the group’s exposure to Russian and Ukrainian markets account for less than 6.5% of their sales revenue. Belupo, their pharma division, had 37,1% of international sales in Russia according to their 2020 annual report. Considering that their pharma division had significantly higher EBITDA margins In 2021 with 20.5% compared to 10.6% in the food division, it Is likely that investors expect a decrease in EBITDA margins in the coming period.

On the positive side, their 2021 financial report recorded a 2.8% increase in the group’s sales revenue and a 64 bps increase In their EBITDA margin.

To conclude, the Croatian equity market has been through a few turbulent weeks and has managed to partially recover but we are still surrounded by a high level of uncertainty, with the war in Ukraine still raging, with rising inflation, and the upcoming interest rate hikes it will be a challenge for the whole world and especially for the European continent.

Disclosure: I do not own any of these shares and this article is purely for informational purposes and should not be used as the basis for any investment decisions.

SYMBOLS

EBITDA – earnings before interest taxes depreciation and amortization

WIG - Warsaw Stock Exchange General Index (WIG) 

BUX -Budapest Stock Exchange  Index

SBITOP – Ljubljana Stock Exchange  Index

ATX - Austrian Traded Index

PX- Prague Stock Exchange  Index

S&P500 - Standard and Poor's 500  Index

EURO STOXX 50 - stock index of Eurozone stocks 

CROBEX- Zagreb Stock Exchange  Index

Sources: zse.hr , pse.cz , RGFI , marketwatch.com , wienerborse.at, ljse.si

For more, check out our business section.

Page 1 of 14

Search