For today we decided to present you with a brief overview of share price performance across sectors for regional companies.
For this we decided to look at the average YTD share price performance of companies in our wider coverage which includes companies from Croatia, Slovenia, Romania, Serbia and Bulgaria. After witnessing a sharp drop in share prices across industries, a partial rebound occurred in almost all sectors. However, not all sectors have recovered equally.
When looking at the graph below one can notice that there are not any surprises when it comes to top or bottom performers. All observed sectors recorded a YTD decrease, with the exception of Construction and Pharma.
Construction companies are on average up 23.1% YTD, which came on the back of Croatian construction companies which all observed a double-digit YTD increase, with Ingra leading the list (+115.8% YTD).
Pharma comes next with a slight increase of 0.3%. Of the observed regional companies from this sector Krka leads the list with +20.8% YTD.
It is worth noting that Telecommunication companies observed a decrease on average of 10.9%, which was mostly influenced by the recent plunge in Optima Telekom share price. Such a decrease came on the back of the news that HT will start fulfilling its obligation to engage an investment bank for the further sale process or to take actions to prevent possible delays in fulfilling the obligations prescribed by the Croatian Competition Agency decision on the conditionally permitted concentration of HT and Optima. However, if we were to look at the median, Telecoms are down by 2.05% YTD.
On the flip side, the highest share price decreases are mostly in line with the sectors which seem to be affected the most by the ongoing Covid-19 situation. Therefore, Banks witnessed a decrease of 23.7%, showing that the regional banks have not significantly recovered from their bottom. Note that the regional banks are currently traded at a median P/B of 0.7.
YTD Performance of Regional Companies by Sector*
*Average share price performance of regional companies in our wider coverage
