Trading statistics for February 2020 show an average daily turnover of EUR 2.62m (+132% YoY). Meanwhile, the major index CROBEX ended February with a sharp decrease of 8.72% ending at 1,863.40 points. Such a decrease could be attributed to the spread of Coronavirus and the spillover of global sentiment on domestic market.
The Zagreb Stock Exchange (ZSE) published their trading statistics for February 2020, showing a total equity turnover of EUR 52.3m (HRK 389.2m). This translates to an average daily turnover of EUR 2.62m (+132% YoY). Such a high increase in turnover could be attributed to the selloff, which occurred in late February. The mentioned selloff was triggered by the spread of Coronavirus and the spillover of global sentiment on domestic market.
As a reminder, last month it appears that markets in general have started to give a heavier weight to potential risks relating to Coronavirus. When observing our region, we believe that such a market reaction is even more pronounced since the virus outbreak hit northern Italy – which not only is a strong trading partner but is also geographically in proximity to both Slovenia and Croatia.
Besides that, the local market seems to have witnessed a spillover of the sentiment on global markets, which have also been observing many trading days in red in late February.
Of the total value traded in the period in February (excluding block transactions), HT generated 17.6%. Valamar Riviera comes second, accounting for 11.6%. Next come Zagrebačka Banka and Adris preferred with 7.4% and 7.3%, respectively. Ericsson NT follows with 6.6%. These five shares generated roughly half of the turnover recorded by the entire (equity) market, excluding block transactions.
When observing the total equity market capitalization, it observed an increase of 5.9% YoY and a 3.3% decrease MoM, amounting to HRK 145.52bn. Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 21.2% of the total value. Next, come two Croatian banks – PBZ and ZABA with 13.3% and 12.6%, respectively. Further, HT holds 9.7% while Adris accounts for 3.4% of the total market capitalization value.
Performance of CROBEX in 2020
As a result of the above-mentioned selloff, CROBEX recorded a sharp decrease of 8.72%, ending at 1,863.4 points. Such a high monthly decrease of the index was last time recorded in March of 2017 when CROBEX dropped by 10.43%. It is also worth noting that all sector indices ended the month in red, with CROBEXturist recording the highest decrease of 9.35%.
Turning our attention to the share price performance of the CROBEX constituents in February; all 15 of them ended the month in red, with Optima Telekom leading the list with -28.32%. Next Come Đuro Đaković and Atlantska Plovidba with a decrease of 24.2% and 17.7%, respectively.
Share Price Performance of CROBEX Constituents in February (%)
