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Croatian capital markets again followed optimistic trends on the global stock exchanges. On Tuesday, Crobex rose by 2.5% to 1861,92 points, with a monthly increase of 16.8 %, almost reaching the highest yearly value of 1872 points (9 January).

In addition to the value of CROBEX, a more significant indicator of positive movement in the market is a more than solid solvency that reached 49 million kunas of trade, while the total trade of securities reached 72 million kunas. Improved investor confidence is confirmed by the data that the total trade was 40 % higher than the May average (36,2 million kunas). The payouts of dividends also contributed to the market’s solvency. In addition to the traditionally solvent companies, the biggest daily growth of 4.6 % was accomplished by the preferred Adris stocks, followed by Dalekovod (4.1% growth), and Končar- Electrical Industries (3.4%). INA stocks grew by 3.5%, HT by 0.6%, Atlantska Plovidba and IGH grew by 2.5%. HT was the most traded stock on the market, with 10 million kunas in trade. The daily winner was the Hidroelektra stock that jumped by 11.4% to 325 kunas with a significant trade of 1,5 million kunas. Regarding other market stocks, if we sort them according to trade levels above 100,000 kunas, we need to mention Konzum stocks (8.9%) and Dioki (7.5%). Centar Bank was the biggest loser, with a drop in stock value of 14.3% to 256 kunas, followed by Croatia Lloyd (-15%) and Čakovečki Mlinovi (-9%). On Tuesday, European stocks were on the rise after the news that some US banks intend to return the funds given to them by the Government through the Trouble Asset Relief Program (TARP). Analysts have different opinions on the reason for the wave of optimism on the Croatian market. Nada Ružić, managing director of Argus securities, believes that domestic investors are highly influenced by the news on the increase or fall in the value on the foreign stock markets. “Presently, the most significant European stock indexes are experiencing growth. On Monday, the Dow Jones index showed solid growth, so it was to be expected that the optimism will catch up to our investors and market. We have to keep in mind that the financial sector was the first to experience the influence of the crisis and will therefore exit the crisis first,” said Ružić. According to her, if the positive global news continues, we can expect an upward trend in the medium term.

Vjeran Filippi, the President of the Board of Adriatica Capital, agrees on the influence the growth on the foreign markets has on our market. According to him, “this is a clear example of investor psychology”. Filippi added”although the positive trends on the financial market are visible, we cannot speak of a consistent trend. A steady recovery of the real sector globally has not yet taken place.” Nada Harambaši?, analyst at RBA Consulting, claims that ”the reason for optimism on the Zagreb Stock Exchange and other markets globally is primarily in the growth of investor confidence in Germany and positive news from the US financial sector.” “Stock indexes have been boosting in the last two months, mainly because of indications that the US recession is slowing down and the corrections in the stock exchanges after decrease in stocks in the previous period” said Mrs. Harambaši? On the contrary, Irena Fištrek, a broker and investment advisor of FIMA Securities, believes that, in addition to the international influence, we cannot ignore the role of good business results of certain Croatian companies. “With the announcement of good business results from most of the Croatian companies and the good news from the foreign markets, we felt a boost in liquidity, not growth. We can say we expected CROBEX to grow, but not with such intensity. Besides, other capital markets subjects, both domestic and international, believe that Croatia has the biggest development potential regionally, so we can expect the growth to continue” said Fištrek, adding that ”we expect the stock index to continue growth in the autumn, but not with such intensity” . Our experts all agree that it is difficult to say what sectors are “leading” the growth of CROBEX. “We do not see the influence of the sector, but the solvency of the stock, with the exception of HT”, points out Harambaši?