IC Market Espresso 2 Mar 2021

Activity on the LJSE in February 2021 – InterCapital’s Best Month on the LJSE Ever
Trading statistics for February 2021 show an average daily turnover of EUR 1.45m (-14% YoY). Meanwhile, SBI TOP ended the month with a solid increase of 2.7%.

The Ljubljana Stock Exchange (LJSE) published their trading statistics for February 2021, showing a somewhat lower equity turnover compared to the previous month of EUR 27.6m. This translates into an average daily turnover of EUR 1.45m (-14% YoY).

Of the total value traded in the period (excluding block transactions), Krka generated EUR 9.93m (or 36%), followed by NLB Group with EUR 4.8m (or 11.9%). Next come Sava Re with EUR 2.55m (or 9.3%) and Petrol with EUR 2.39m (or 8.7%). KD group follows with EUR 2.1m or (7.9%). These 5 shares generated 79% of the turnover recorded by the entire (equity) market.

When observing the total equity market capitalization, it observed a 1.6% MoM increase (or almost EUR 117m) and currently amounts to EUR 7.29bn.

The main equity index of LJSE observed a very solid 2.7% monthly increase, ending February at 965.57 points. Of the SBITOP constituents, Sava Re leads the list with an increase of 15.2%. The company’s share price closed the month at EUR 22.8 per share, while, at the current share price the company is traded at a P/B of 0.81x. Cinkarna Celje and NLB follow, with a solid increase of 7.8% and 7.5%, respectively. Krka, as the index heavyweight showed a slight decrease of 2.9%.

Performance of SBITOP Constituents in February 2020 (%)

In February, NLB Group published their FY 2020 results posting profit after tax of EUR 268.9m (+38.95 YoY), which was strongly affected by the acquisition of Komercijalna banka. To be specific, net positive impact of negative goodwill was noted in the amount of EUR 137.0m, and additionally established EUR 13.4m for expected credit losses on the performing portfolio for the Komercijalna banka group.

Excluding the impact of the acquisition, Group profit would amount to EUR 141.3m, representing a decrease of 27% YoY. Such a result significantly exceeded previous forecasts by the Group, mostly because of better-than-expected COR performance.

Activity on BELEX in February 2021
BELEX15 index recorded an increase of 1.6% and ended the month at 745.64 points.

The Belgrade Stock Exchange published their February report according to which turnover amounted to EUR 6.2m (when observing solely equity). This would translate to an average daily turnover of EUR 345k. The total turnover dropped 7% YoY (EUR 6.68m in February 2020).

The most traded share (excluding block transactions) was Komercijalna banka with a turnover of EUR 3.9m, accounting for more than half of the equity turnover. As a reminder, NLB has published a Takeover Intention Notification in daily newspaper Politika (newspaper that is regularly distributed on entire territory of Serbia). The Takeover Intention Notification regards the acquisition of:

  • all remaining regular shares of Komercijalna banka at the point of publishing not in NLB‘s ownership (2,820,270 shares or 16.77% of this class of shares) and
  • all priority shares of Komercijalna banka (373,510 or 100% of this class of shares)

NLB’s takeover intention states that it intends to submit Takeover Approval Request to Serbian Securities Exchange Commission (“SEC”) within a period of 15 business days and publish Takeover Bid immediately (latest the next following day) after obtaining the corresponding approval from SEC. Following the mentioned takeover, Komercijalna banka will consequently be delisted from the exchange. KMBN is currently one of the index heavy weights with a 20% weight in the BELEX15.

As a result of the above mentioned, Komercijalna Banka pref. share surged by 25%, while the regular share increased by as much as 6.67%. Of other index constituents Dunav osiguranje noted an increase of 8.8%, while Messer Tehnogas recorded an increase of 4.9%.On the flip side, Galenika Fitofarmacija witnessed a decrease of 3.76%.

BELEX15 index recorded an increase of 1.6% and ended the month at 745.64 points.