For today, we are bringing you a brief overview of how much individual components impacted CROBEX movement since the beginning of the year.

For the first time since September 2017 the main index of the Zagreb Stock Exchange (CROBEX) passed 1,900 points in the course of this week. As a result of that, we are bringing you a brief overview of which components had the biggest impact on the growth since the beginning of the year. Currently, CROBEX stands at 1,901.30, which represents an increase of 8.7% YTD.

CROBEX Performance YTD

The latest composition of CROBEX includes 16 components of which 12 have observed a share price increase YTD. Out of those, one company observed a triple-digit growth, while four companies observed a double-digit growth. To be specific, Optima Telekom leads the list with a share price increase of 198.8% YTD.  To read more about Optima’s share price increase click here. Next come Končar and Ericsson NT whose share price increased 29.9% and 16.3% YTD, respectively. Podravka and Adris preferred follow with an increase of 11.5% and 10.8%. On the flip side, since the beginning of the year Atlantska Plovidba, Jadran, Đuro Đaković and Dalekovod have observed a share price decrease.  

Share Price Performace YTD of CROBEX Components

However, since these companies have different weights in the index, it makes more sense to look at their impact on CROBEX based on their weights. It is also important to mention that CROBEX started 2019 with 19 components and after the revision in March 2019 three companies were excluded from the index (Ingra, Kraš and Viktor Lenac).

Since the beginning of the year, the index increased by 152.5 points. Of that, Končar accounts for a 44.7 point increase, followed by Podravka with a 19.9 point increase. Valamar and Ericsson NT follow with a 19.7 and a 19.4 point increase, respectively. On the flip side, Dalekovod’s share led to a 4 point decrease of the index while Jadran followed with a 3.8 point decrease. Note that 3 companies which were excluded from the index in March combined impacted CROBEX by -0.5 points

Impact of Each Individual Component on CROBEX Movement YTD

Such a performance of the main index of the Zagreb Stock Exchange went hand in hand with the improved turnover recorded on the ZSE in 2019. Overall, in May 2019 ZSE recorded an average daily turnover of roughly EUR 1.48m which represents a 46.6% YoY increase, indicating that investors’ confidence has risen. To read more about the average daily turnover of the most traded shares in the region click here.

We believe that the rise in investors confidence coupled with improving turnover will help in the promotion of the local capital market and further boost daily liquidity. We need to once again stress that these positive impacts are also closely linked to positive macroeconomic environment and Croatia’s entry into investment grade (by S&P and recently Fitch) which in turn is a positive signal for international investors who might now place Croatia on their investment radar.