At the end of June 2022, SBITOP amounted to 1,118.45 points, decreasing by -2.4% during the month.
The Ljubljana Stock Exchange has published its latest trading activity report for June 2022. According to the report, the total equity turnover (including block transactions) amounted to EUR 28.4m, which is a growth of 3.3% YoY, but a decrease of 17.2% MoM. This continues the trend on what we have seen in the majority of equity markets in the EU and the US, as the inflationary pressures and the geopolitical situation are causing a lot of uncertainty and increasing the risk when it comes to investing in stocks. At the same time, the average daily turnover in June amounted to EUR 1.3m.
June also recorded a month of no equity block trades, so total equity turnover is the same. Looking at the most traded companies, Krka leads the way with a total turnover of EUR 10.7m, representing almost 37.6% of the total turnover during the month. Next up, we have Triglav, with a turnover of EUR 3.5m (or 12.3% of the total), Cinkarna Celje, with a turnover of EUR 3.38m (or 11.89% of the total), NLB, with a turnover of EUR 3.36m (or 11.8% of the total), and Petrol, with a turnover of EUR 3.1m (or 10.9% of the total). Together, the top 5 most traded companies represented 85% of the total turnover on the LJSE during the month. If we took the top 10 most traded companies, they would represent 99% of the total turnover, which is something that can be expected on the LJSE, with only 24 listed companies.
Performance of Slovenian blue chips (June 2022, %)
Taking a look at the performance of the Slovenian blue chips in June, only 3 companies recorded growth, while the remaining 7 Slovenian blue chips experienced some sort of decline. The largest increase was experienced by Krka and Salus, with 7.1% and 4.3%, respectively. On the other hand, Triglav declined the most, losing -12.5% of its value during the month, followed by Sava Re with -9.8%, Cinkarna Celje with -8.1%, and NLB, with -7.3%. As ECB recently announced it will start raising key interest rates by at least 25 bps in the coming few months, the decrease experienced by the equity market should be even more pronounced. Combined with all the other factors (the current geopolitical situation, inflation.. etc.), which are still far from being fixed and in a stable position, all of these challenges have the potential to lead to a recession, which would have a further negative impact on the equity markets.
The negative sentiment is also reflected in SBITOP, LJSE’s main index, which lost -2.4% of its value during the month, ending June at 1,118.45 points.
