Zagreb stock exchange expects stagnation after Credit Suisse collapse

March 16, 2023 – Thursday is seeing cautious trading on the Zagreb stock exchange, where the Crobex index could stagnate, and investors’ focus will be on global stock market events, which could recover from yesterday’s sharp drop.

If Table of contents reports, all analysts who participated in today’s Hina study expect Crobex to stagnate.

The Crobex index fell by 1.76 percent to 2,218 points on Wednesday and the Crobex10 by 1.73 percent to 1,267 points.

It was the biggest daily drop for these indices in the past two months, dropping to the lowest levels since February 27.

At the same time, all sector indices also fell, with Crobextransport seeing the largest change of 4.87 percent.

Regular share turnover amounted to approximately 1.37 million euros, about 100 thousand more than the day before.

“The major stock market indices on the Zagreb Stock Exchange ended yesterday’s trading in the ‘red’, due to the negative sentiment prevailing in foreign markets. The total turnover amounted to EUR 1.4 million. Almost the total amount related to stocks, while bonds were trading for as little as EUR 5,000,” said Miso Kalajzic, head of brokerage trading at OTP bank.

The highest turnover achieved by the share HT

The highest turnover, 177 thousand euros, was achieved yesterday by the share HT, the price of which fell by 0.78 percent to 25.50 euros.

With a turnover of 163.5 thousand euros, the Span share followed, the price of which fell by 2.58 percent to 49.1 euros.

The focus was also on the Podravka shares, which realized 146,000 euros, with the price falling by 2.17 percent to 90 euros.

Shares of Atlantska Plovidba achieved a turnover of more than 100,000 euros, the price of which fell by almost three percent to 58.6 euros.

The biggest loser was the Alpha Adriatic share, with a price drop of 10.5 percent to 23.8 euros.

The share price of the Zagreb Stock Exchange rose the most, by 2.7 percent, to 3.8 euros.

A total of 37 shares were traded on the Zagreb stock exchange yesterday, of which the price of only four rose, 25 fell and eight stagnated.

“For today, we predict stagnation in the movement of stock indices, with the direction largely dependent on sentiment in foreign markets,” said Miso Kalajzic.

Fears of a banking crisis weighed on global stock markets

For example, Crobex followed the sharp drop in European stock market indices yesterday. The London FTSE fell 3.8 percent, while the Frankfurt DAX fell 3.3 percent and the Paris CAC 3.6 percent.

Equity indices received sharp corrections on the major European stock exchanges yesterday. The biggest losses were in banking sector equities, which continued the crisis that started last week with the collapse of the SVB bank in the US. Among yesterday’s major announcements, industrial production growth in the Eurozone was slightly better than expected, while the US recorded a fall in the pace of producer prices, as well as a fall in retail sales.

Share prices on Wall Street fell on Wednesday. The Dow Jones lost 0.9 percent and the S&P 500 lost 0.7 percent. The Nasdaq index gained 0.05 percent.

Recovery is expected

This morning, European futures indices were positive, announcing the market’s recovery after yesterday’s sharp drop caused by the troubles of Switzerland’s second largest bank, Credit Suisse.

Credit Suisse’s share price fell about 14 percent to an all-time low yesterday after the bank reported weaknesses in its financial statements over the past year and the bank’s largest investor, Saudi National Bank, said it would not provide the Swiss bank with further financial support. could grant.

This, along with the collapse of SVB late last week, fueled speculation about which other banks could be in trouble.

But fears of a banking crisis eased somewhat this morning following news that the Swiss central bank will open a nearly $54 billion line of credit for Credit Suisse.

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