IC Market Espresso 19 Nov 2020

 
First ETF’s on ZSE Started Trading on Tuesday
The listings were welcomed with a strong interest on the market, as the turnover of ETF’s amounted to HRK 4.5m

Tuesday marked what can arguably be considered the most significant event on the ZSE this year, which was the first listing of ETF’s in Croatia. To be specific, InterCapital Asset Management listed two ETF’s – InterCapital CROBEX10tr UCITS ETF (ticker: 7CRO) which replicates CROBEX10tr index, while InterCapital SBI TOP ETF (ticker: 7SLO) replicates SBITOP index. Both mentioned ETF’s are total return ETF’s.

The listings were welcomed with a very solid interest on the market, as the turnover of both ETF’s amounted to HRK 4.5m. Of that, HRK 3.4m relates to the turnover of 7CRO, while HRK 1.1m relates to the turnover of 7SLO.

InterCapital Securities is the market maker on both ETF’s, providing additional liquidity and ensuring that investors, especially retail, can buy or sell their ETF shares at any times. Besides that, we once again note that the brokerage fee for trading these ETF’s is 0% for our clients until the end of 2020.

Last week InterCapital wrote a short ETF Serial, which you can find on the link here (Croatian only).

Končar Signs a Deal With HŽ Worth HRK 844.7m
To put things into a perspective, the deal accounts for 28.2% of the company’s trailing 12m consolidated sales.

On Tuesday, Končar Group signed a Sale and Purchase Agreement with HŽ Passenger Transport Ltd. for 21 electric multiple units, of which 11 for urban-suburban traffic (UST) and 10  for regional traffic (RT).

The mentioned contract is worth HRK 844.7m in total, while the final deadline for delivery of all trains is December 2023. To put things into a perspective, the mentioned deal accounts for 28.2% of the company’s trailing 12m consolidated sales.

Production of new electric multiple units will be financed mostly by EU funds under the Operational Programme Competitiveness and Cohesion 2014 – 2020 (85%) and partly by the State Budget of the Republic of Croatia (15%). Deadline for delivery of the first electric multiple unit for urban-suburban traffic will be 24 months after the signing of the Agreement, after which 10 more electric multiple units for urban-suburban traffic will be delivered, followed by 10 units intended for regional traffic.

Končar Group added that the signing of this Agreement represents a continuation of cooperation between KONČAR and HŽ Passenger Transport in the modernisation and upgrading of railway vehicle fleet.

As a reminder, Končar’s Management expects to see a 5% increase in sales for FY 2020. The company recently published their 9M 2020 results, which you can read more about here.