In May 2023, total equity turnover decreased 14.5% MoM, while CROBEX was up by 1.2% during the month, ending at 2,257.24 points.

In May, we have seen a positive movement of CROBEX, noting an increase of 1.2% MoM. The total equity turnover on the exchange, however, is quite different to the previous month. In May 2023, it amounted to a total of EUR 17.4m, which represents a decrease of 30.4% YoY and a decrease of 14.5% MoM. The decrease on a yearly level is evident and further amplified due to exceptionally strong trading in May last year. This month, there were no block trades on the stock exchange. Overall, this would imply an average daily equity turnover of EUR 0.8m.

Monthly equity turnover on ZSE [January 2022 – May 2023]

Source: ZSE, InterCapital Research

Turning our attention to the top 10 most traded stocks, in total, they recorded a turnover of EUR 11.8m, accounting for 67.9% of the equity turnover during the month. The highest turnover was recorded by HT, at EUR 2.31m, or 13.3% of the total equity turnover. HT is followed by Valamar Riviera, at EUR 1.5m, or 8.4% of the total. Span and Turisthotel follow the list with 7.7% and 7.6% of total equity turnover, respectively. This would also mean that the top 5 most traded stocks accounted for 43.7% of the total turnover. We note that Hrvatski Telekom was the most attractive stock in May, dethroning Span after a few consecutive months on ZSE.

Looking at the largest index on ZSE, CROBEX, we note that it recorded a slight increase of 1.2% during the month and ended at 2,257.24 points. On the other hand, CROBEX10 experienced a solid 1.44% increase and ended at 1,300.15 points.

Performance of CROBEX10 constituents (May 2023, %)

Source: ZSE, InterCapital Research

Looking at the CROBEX10 constituents during the month, the largest increases were recorded by Podravka, with its share price noting a growth of as much as 6.9%. Podravka is followed by Span and Končar with 5% and 4.7%, respectively. The positive sentiment that lasted throughout the whole first quarter continued. The sentiment during Q1 was driven by warmer-than-expected winter, inflation stabilization, as well as the general macroeconomic outlook being less bleak than it seemed a couple of months ago. However, we note that the pace of growth has soothed slightly.

Performance of CROBEX10 constituents (YTD, %)

Source: ZSE, InterCapital Research

Looking at the YTD performance, one can notice a more pronounced positive sentiment. We had 9 out of 10 CROBEX10 constituents in green, with the majority of them noting a solid double-digit return. Span’s share price development, without a doubt, leads the list with an increase of as much as 70.9%, which is in line with mentioned Span’s price development during May (+5%). Span is followed by Končar and Adris (pref.) with a 23.7% and 23% increase, respectively. Atlantska Plovidba is to follow with 20.1% increase, Podravka with 20%, Arena Hospitality Group with 19% and Atlantic Grupa with 9.7%. Finally, Valamar Riviera and HT also noted a high single-digit increase of 8.2% and 6.5%, respectively. Ericsson NT is the only company to note a negative share price development of shy 3.7% decline on a YTD basis. This resulted in CROBEX10 growth of 14.6%.

At the share price before it was announced, this would amount to a DY of 1.5%. Ex-date is set for 27 June 2023.

Končar published the resolutions of its GSM held yesterday. Among the resolutions, the one that’s most interesting is the approval of the dividend payment. According to the announcement, out of the 2022 net profit of EUR 15m, EUR 5.1m would be paid out as dividends, representing a pay-out ratio of 34%.

This would mean that a total of EUR 2 per share would be paid as dividends, representing a DY of 1.5%. The ex-date for the dividend is set for 27 June 2023, while the payment date is set for 13 July 2023.

Below we provide you with the historical dividend per share and dividend yields of the Končar Group.

Končar dividend per share (EUR*) and dividend yields (%) (2015 – 2023)

Source: Končar, InterCapital Research

*dividends paid out in HRK were converted to euros using CNB’s exchange rate for the period when the dividends were paid out