In 2023 Slovenian blue chips recorded strong double-digit returns, with SBITOP increasing by almost 20%. The total equity turnover on the LJSE declined 25.6% YoY in 2023. Five most traded stocks were Krka, NLB, Triglav, Sava Re & Petrol, representing 82.5% of the total equity turnover on the whole stock exchange.

Ljubljana Stock Exchange, LJSE, published its annual trading activity report, for 2023. According to the report, the total equity turnover on LJSE amounted to EUR 320.7m, representing a 25.6% YoY decline. In terms of the average daily turnover, it amounted to EUR 1.3m during the 2023 overall. Moving on, SBITOP recorded a solid double-digit increase of 19.8% YoY, ending at 1,253.41 points

Monthly equity turnover on LJSE (January 2022 – December 2023, EURm)

Source: LJSE, InterCapital Research

In terms of the most traded stocks, leading the way is Krka with a turnover of EUR 128.3m, representing as much as 40% of the total equity turnover in 2023. Next up, there is NLB at 71.8m, or 22.4% of the total, Zavarovalnica Triglav at EUR 26.8m, or 8.4%, and Sava Re, at EUR 19.7m, or 6.1%. Finally, there is Petrol, at EUR 18m (or 5.6% of the total). This would also mean that the top 5 most traded stocks accounted for 82.5% of the total equity turnover during the year, while the top 10 stocks accounted for as much as 99.2% of the total, which is in line with historical shares of total equity turnover in Slovenia. Finally, during 2023, block transactions accounted for c. 11% of total equity turnover.

2023 gains were recorded on the back of positive sentiment combined with strong results from SBITOP constituents overall. This year was marked by the dynamic development for Slovenian blue chips, arising both from industry trends and government interventions. For example, NLB benefited from a positive macro environment due to higher interest rates environment. The company noted strong 9M results for 2023 due to positive NII development. The NII growth came on the back of higher loan amounts. Furthermore, NII was also supported by higher NIM, which amounted to 3.42% during 9M 2023, a 1.25 p.p. increase YoY. NLB also updated its 2023 and 2025 outlook. Finally, NLB markted the year by announcing an issuance of EUR 500 green senior preferred noted & announcement of acquisition of Summit Leasing, a leading provider of auto finance in Slovenia. Summit Leasing has a vast network of over 750 dealers in Slovenia and Croatia, as well as over 550 points-of-sale in consumer finance in Slovenia. By the end of 2022, Summit Leasing managed app. 140k outstanding financing contracts with over 110k customers. Completion of the transaction is subject to regulatory and anti-trust approvals and is planned for the second half of 2024. The acquisition is expected to increase NLB’s RWAs by app. EUR 700m, within its EUR 4bn capacity for M&As. For Petrol, another heavyweight in SBITOP, year was marked mainly by further unexpected government regulation. You can read more about it here. Insurers were also hit by government regulation on supplemental health regulation, resulting in a Profit warning from Triglav, combined with unexpectedly high CAT claims during Q3. You can read more about it here.

Performance of SBITOP constituents (2023, YoY, %)

Source: Bloomberg, InterCapital Research

Yesterday, Luka Koper published a quick overview of its preliminary 2023 results. In this quick overview, we’ll go through the main points.

According to Luka Koper, in 2023 they expect net revenue of EUR 308.8m, an increase of 1.7% compared to 2022. Higher throughput was recorded on both strategic cargo groups (containers and cars), while the total maritime throughput reached 22.3m tonnes.

In terms of maritime throughput in tonnes, Luka Koper General cargo to reach 1.11m tonnes, representing a decline of 15% YoY. Containers are expected at 9.8m tonnes, an increase of 1%, while cars are expected at 1.57m tonnes, a 13% increase. Liquid bulk cargo is estimated at 4.5m tonnes, a 3% reduction, while dry bulk cargo is estimated at 5.29m, a 15% reduction. As such, the total maritime throughput is expected at the aforementioned 22.3m tonnes, a 4% reduction YoY.

In terms of the maritime throughput in units, containers are expected to achieve 1.07m TEU units, a 5% increase YoY, while cars are expected to reach 916.7k units transported, a 14% increase YoY.

Luka Koper recently also published the summary of its 2024 – 2028 Strategic Business Plan, more on which you can read here.

Luka Koper maritime throughput by categories in tonnes (2023 vs. 2022)

Source: Luka Koper, InterCapital Research