As of end Q3, the market cap of the ZSE amounted to HRK 130.7bn while 106 companies were listed on the exchange.

For today we decided to look at the free float market cap of the ZSE. As of end Q3, the market capitalization of the ZSE amounted to HRK 130.7bn while 106 companies were listed on the exchange. Of that, roughly HRK 30bn is in free float, or in other words roughly 23% of the total equity market cap is in free float.  One of the reasons for such a low free float could be attributed to the fact that the highest market cap companies such as INA, ZABA and PBZ have almost no free float (all have a low single digit free float).

If we were to look at the companies with the highest free float market capitalization, HT leads the list with HRK 4.58bn or 15.5% of the total free float market cap. Adris and Podravka come next with HRK 2.68bn (or 9%) and HRK 2.5bn (or 8.4%), respectively. It is also worth noting that the top 10 companies take up for roughly two thirds of the free float market cap.

Turning our attention to the key players on the equity market, Mandatory Pension funds are by far the largest player on the market as they manage HRK 11.7bn in domestic equity or roughly 40% of the total free float. Voluntary Pensions funds account for a significantly smaller amount of roughly 3% or HRK 841m. Meanwhile, Croatian UCITS funds account for another 1.5% or HRK 446m. Such a figure could be seen as rather small compared to the total assets under management in UCITS funds of HRK 17.86bn. However, majority of these funds relate to bond holdings, while only 29% of total equity holdings are in domestic equity. Croatian Veterans Fund accounts for another 3.2% of the total free float market cap.

Meanwhile, the rest of the free float (roughly HRK 15.7bn) are allocated among foreign institutional investors, retail investors etc.