The new index will be a total return index and will include all 5 companies of the Croatian prime market and 8 companies of the Slovenian prime market (subject to change based on the decision of each stock market). Note that the weight of each constituent share will be capped at 15%.

Following up on our blog,  Zagreb and Ljubljana Stock Exchanges published that they will launch new joint equity index called ADRIAprime, as of 19 June 2019.

ADRIAprime is a free float market capitalization weighted total return index. The mentioned index will include shares listed on the Prime Markets of the Zagreb and Ljubljana Stock Exchanges, whose selection will depend on the decision of each stock market. The weight of each constituent share will be capped at 15%. The base level will be set at 1,000.00 points on 30 April 2019 and it will be calculated in Euros.

Note that ADRIAprime will be the first Zagreb and Ljubljana Stock Exchanges joint index and eleventh Zagreb Stock Exchange equity index.

All index components and their weights can be seen in the table below.

ADRIAprime Index Composition

If we were to look at the performance of the index (shares based on the weight) since 30 April, one can notice that it has increased by 2.1%. You can see the performance of the index in the graph below.

ADRIAprime Performance Since 30.04.2019.

At the current share price, dividend yield is 6%. Note that the ex-date is 18 June 2019.

Ericsson Nikola Tesla held the Annual General Meeting in which the shareholders approved the HRK 70.6 dividend per share, which will be paid out of retained earnings from years 2017 and 2018.

The approved dividend represents a significant improvement from HRK 32.5 DPS paid out last year, however one should also note that the financial result in 2017 was significantly lower than in 2018. To read more about Ericsson NT’s FY 2018 results click here.

At the current share price, dividend yield is 6%. Note that the ex-date is 18 June 2019.

In the past, Ericsson NT’s dividend pay-out regularly surpassed the company’s net income due to the high levels of retained earnings and reserves that the company accumulated over the years. During the years preceding 2018, the company was paying out a regular flat dividend in the amount of HRK 20 which was then increased by an additional dividend.

For instance, in 2014 (the year when the highest dividend in the observed period was recorded) the company increased the regular dividend of HRK 20 by an additional dividend of HRK 300. The total dividend of HRK 320 for that year was paid out of the surplus recorded in the company’s legal reserves and retained earnings from four previous years (2004, 2010, 2011 and 2012).

When observing the share price performance since 2013, one can observe that the share price observed a decrease of 16%. However, when observing the total return (the return an investor would have made had he invested all the dividends back into the shares) in the same period, one can notice an increase of 55.8%. Consequently, we can conclude that the dividend payments were the sole driver of the growth in the mentioned period.

Share Price Performance vs Total Return (2013 – 2019)

Fondul reported a total NAV of RON 10.25bn (EUR 2.16bn) (+6.6% YoY) which translates into a NAV per share of RON 1.4404 (+10.5 YoY).

As Fondul Proprietatea published their NAV as of 31 May 2019, we are bringing you it’s short overview.

According to the latest NAV report, Fondul reported a total NAV of RON 10.25bn (EUR 2.16bn), which translates into a NAV per share of RON 1.4404. When comparing it to the same period last year, their NAV increased by 6.6%, while NAV per share increased by 10.5%. Meanwhile, when comparing MoM, Fondul’s NAV increased by 6.2%, while their NAV per share increased by 6.5%.

Fondul Share Price & NAV per Share (2016 – 14.6.2019)

Next, when observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for 59.8% of the total NAV.

Furthermore, when compared to the same period last year, the Fund increased their listed equities (+0.6 p.p.), and also increased net cash & receivables by 1.4 p.p. Meanwhile, Fondul decreased their exposure to unlisted equities which now account for 69.1% of the portfolio.

Fondul Price To NAV Discount (2016 – 14.6.2019) (%)

Turning our attention towards the share’s price performance, as of 14 June, the share price amounted to RON 1, marking a 12.1% increase YoY. The discount to NAV per share decreased by 1 p.p. YoY and currently stands at 30.6%.