As the market has since the beginning of 2020 experienced a lot of uncertainty (pandemic and its related effects, supply chain disruptions, inflation, conflict in Ukraine, etc.), we decided to bring you an overview of how this affected the turnover on the Zagreb Stock Exchange.

To express how certain events are affecting the companies on the stock exchanges, one of the best ways is of course to look at the stock’s performance in a certain time period. The other is looking at the average turnover, which is correlated to the volatility of the market and by extension, the share price movements.  As there has been a lot of volatility in the last two years due to the above-mentioned reasons, there has also been a lot of turnover, both in the positive and negative direction, depending on the news.

To better see how these events affected the share’s turnover, we decided to look at the times when CROBEX10 increased on a daily basis, and look at the CROBEX10 constituents’ turnover on those days, as compared to when the opposite happened, i.e. when the index decreased. This was done in order to answer the fundamental question, is more trading done when the market is growing or when the sentiment is negative?

In total, since the beginning of 2020, there were 599 trading days (as of 24 May 2022) on the Zagreb Stock Exchange. As we are using CROBEX10 for this comparison, in its case, 318 days can be considered „bullish“, i.e. the index increased compared to the day before, while 281 days can be considered „bearish“, i.e. the index decreased compared to the day before. This would mean that since the beginning of 2020, 53% of the days were bullish, and 43% were bearish. So how did this affect the turnover of the CROBEX10 constituents?

Average turnover of CROBEX10 constituents since the beginning of 2020 (HRK)

As can be seen from the graph, the story is varied. Even though the companies which are traded the most remain roughly the same, the average turnover on bullish compared to bearish days can be quite different. Ranking these companies by turnover, HT had an average daily turnover of HRK 1.03m in the period when the market was green, while in the time the market was red, it had a turnover of HRK 1.1m. On the other hand, the 2nd most traded stock, Valamar Riviera, had an average turnover of HRK 979.1k when the market was green, but experienced a reduction to an average turnover of HRK 946.7k when the market was red. A similar story can be seen by most of the other companies, with the only notable exception being Atlantic Grupa, whose average turnover amounted to HRK 344.2k during the times when the market was positive, but HRK 412.8k when the market was negative, meaning that on average, Atlantic Grupa is traded 16.6% less during the good days than during the bad days.

Increase/decrease in turnover on positive days compared to the negative days (%)

At the share price a day before the proposal, dividend yield is 9.5%, while ex-date is 6 June 2022.

The shareholders of Triglav approved the initial proposal of the Management Board regarding the 2021 dividend payment. To be specific, the approved dividend is EUR 3.70 per share. The total amount of dividends of EUR 84.1m will exceed 50% of the Company’s consolidated net profit of the previous year. We note that the company has been a consistent dividend payer prior to the pandemic, paying out EUR 2.5 per share for 5 consecutive years (as visible on the graph below).

At the share price a day before the proposal, dividend yield is 9.5%. However, at the current share price, dividend yield is 9.2%. Note that the ex-date is 6 June 2022.

Dividend per Share (EUR) and Dividend Yield (%) (2014 – 2022)

At the share price before the announcement, the DY amounted to 2.8% for both the regular and preferred shares. The ex-date is set for 7 June 2022, while the payment date is set for 23 June 2022.

On 24 May 2022, the General Assembly of Končar D&ST approved the dividend payment for 2022. As a reminder, out of HRK 88.4m net profit for 2021, HRK 53.1m will be held as statutory reserves, while the remaining amount, HRK 35.4m will be paid out as dividends.

This represents a payout ratio of 40%, and at the share price before the announcement, a dividend yield of 2.8% for both the regular and preferred shares. The ex-date is set for 7 June 2022, while the payment date is set for 23 June 2022.

It should be noted that Končar D&ST is a member of Končar elektroindustrija Group (KOEI), and is consolidated in the Group’s results. Končar currently holds 67.9% of the shares in the Končar D&ST.

In the graphs below, we provide you with a historical overview of the Company’s dividends per share and dividend yields.

Dividend per share (2015 – 2022, HRK) and Dividend Yield (2015 – 2022, %)

Today, the High Court of Ireland delivered its judgment in the case concerning Sava Re – in favor of the company. The Court’s judgment means that Pozavarovalnica Sava is not liable for losses to policyholders arising during the Covid-19 period.

According to the ruling of the High Court of Ireland, Sava Re’s policy for business interruption and loss of license does not provide cover for the losses arising from the Covid-19 pandemic. This would mean that Sava is not liable to pay for losses to policyholders that have this kind of policy, during the covid-19 period.

The parties in question will review the judgment and Zavarovalnica Sava will provide an update to the impacted policyholders in the upcoming weeks. To read more click here.