Number of Years Needed to Turn Over the Free Float of CROBEX10 Components

Today we bring you an interesting overview of how long it would take to turn over the current free float of CROBEX10 components. To calculate this, we divided the current free float (all individual shareholdings lower than 5%) with the average daily volume recorded during the 9M period of 2020 (including block transactions). We excluded the 2 largest transactions for each individual share to exclude outliers.

With all of the company’s shares being considered as free float, Koncar tops the list as the company which would take the longest amount of time to turn over the company’s free float. However, one should note that a high level of free float isn’t the only reason why the company topped the list, the other reason is also the fact that Koncar posted the lowest average daily volume of all the CROBEX10 constituents during the first nine months. Following Koncar, come two food companies, Podravka and Atlantic Grupa. While Podravka recorded 18 years needed to fully turn over their free float, Atlantic Grupa needs 17. The similarity can be contributed to the similar state of both companies as they are both operating at record low indebtedness and are similarly impacted by the coronavirus pandemic. Meanwhile, Adris’s preferred share recorded 13 years needed to fully turn over their free float, which isn’t surprising considering that the company has a high free float (95%) which takes a longer time to be fully turned over. HT also recorded a long amount of time needed, despite a lower free float of 45%.

Optima Telekom recorded the shortest amount needed to turn over all of their shares with only one year needed. This can be attributed to the high trading activity which the company generated amid the speculation about a potential sale.

Number of Years Needed to Turn Over the Free Float of CROBEX10 Components

When looking at the company’s market cap, HT tops the list with a free-floating market share of HRK 6.4bn. Note that this amounts to more than double the market cap of their closest follower, Podravka, whose current free float market share amounts to HRK 2.7bn. On the flip side Optima Telekom recorded the lowest free float market share value among the selected companies.

It is important to note that multiple factors have influence on the results presented above (i.e. the results for some companies would be different if we included large one-off transactions). However, this can serve as another interesting and rough overview of market liquidity.

Filip Gracin
Category : Blog

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