Liquidity Normalizes on ZSE – October 2023

In October 2023, total equity turnover decreased 48%, MoM, with CROBEX decreasing by 2.7% during the month, ending at 2,365.44 points.

In October, we saw a slight retrace of CROBEX, noting a decrease of 2.7% MoM. The total equity turnover on the exchange is fairly below the average on a monthly basis. However, we emphasize that August & September represented above-average trading done on ZSE compared to the historical numbers, so the double-digit MoM decrease does not appear that problematic. Overall, by the end of the month, the total equity turnover amounted to EUR 22.9m, which represents a 48% MoM decrease and 48% YoY. Finally, the block turnover amounted to EUR 3.8m. The average daily turnover amounted to EUR 1m.

Monthly equity turnover on ZSE (January 2022 – October 2023)

Source: ZSE, InterCapital Research

Looking at the top 10 most traded stocks, in total they recorded a turnover of EUR 15.3m, representing 66.7% of the equity turnover during the month, which is also in line with historical data. In terms of individual stocks, Podravka recorded the highest turnover, at EUR 3m, representing 13% of the total equity turnover on ZSE during the whole month. Following Podravka, there is Valamar Riviera with EUR 2.8m (or 12.3% of the total), and Adris (pref.) at EUR 1.7m (or 7.4% of the total). If we were to look at remaining shares within the top 5 most traded companies, there are HT and Span, both with EUR 1.5m turnover or 6.6% of total equity turnover each. This would mean that the top 5 most traded stocks accounted for 45.8% of the total turnover.

Looking at the largest index on ZSE, CROBEX, we note that it retraced slightly by 2.7% during the month and ended at 2,365.44 points. CROBEX10 experienced a similar movement with a 2.7% decrease and ended at 1.755,20 points.

Performance of CROBEX10 constituents (October 2023, MoM, %)

Source: ZSE, InterCapital Research

Moving on to the CROBEX10 constituents during the month, 3 out of 10 companies recorded positive share price development, Valamar Riviera remained flat, while 6 constituents recorded decreases. The largest increase was recorded by Končar and Ericsson NT, with its share price noting an increase of 1.6% and 1%, respectively. Both of the companies noted an increase before the Q3 reports that did end up being strong for both companies. HT is to follow with 0.8%, while Valamar Riviera remained flat. On the other hand, Span recorded the largest decrease of 11.6%, followed by Arena Hospitality Group, at a 9.4% decrease. We note this is the second month of Span’s share price decreasing with a 14.4% decline during September.

Performance of CROBEX10 constituents (YTD, %)

Source: ZSE, InterCapital Research

Moving on to the YTD performance ending at the end of October, one can notice a more pronounced positive sentiment. We had 8 out of 10 CROBEX10 constituents in green, with the majority of them noting a solid double-digit return. Podravka’s share price development, without a doubt, leads the list with an increase of as much as 74.7%. Podravka is followed by Končar and Span with a strong double-digit increase of 65.5% and 29%, respectively. Atlantic Grupa follows them with 13.5%, Adris (pref.) with 11.8%, HT with 11.2%, and Atlantska Plovidba with 6.3%. Finally, Valamar Riviera also noted a single-digit increase of 4.5%. Arena Hospitality Group and Ericsson NT are the only two companies to note a negative share price development with a 3.8% and 10.3% decline on a YTD basis. This resulted in overall CROBEX10 strong double-digit growth of 27.1% on a YTD level.

Category : Flash News

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