If we were to exclude Kraš’ turnover, total turnover so far in September would amount to HRK 216.1m, which represents an increase of 35% compared to September 2019. Note that this increase will be even higher, as there are two trading days left in September.

So far in September, the Zagreb Stock Exchange has recorded an extremely high turnover of HRK 532.2m. Of that, Kraš’ turnover accounts for HRK 316.12m (or 59.4%). The mentioned increase in Kraš’ turnover came in the simillar period as the announcement that their largest shareholder Mesna Industrija Braća Pivac acting in concert with KRAŠ-ESOP has the intent to publish a takeover bid. In parallel to this event, Kappa Star Limited (KSL) started buying large volumes of Kraš’ share, which eventually led to a 173.4% increase in the share price (compared to the beginning of September). According to the Zagreb Stock Exchange, Kappa Star Limited currently owns 16.68% of the share of Kraš, making them the third largest shareholder, after Mesna Industrija Braća Pivac (30.73%) and Kraš ESPO (18.45%). It is worth noting that yesterday, KSL published a document, stating that they do not have an intent on announcing a voluntary takeover bid. To read more about Kraš click here.

If we were to exclude Kraš’ turnover, total turnover would amount to HRK 216.1m, which represents an increase of 35% compared to September 2019. Note that this increase will be even higher, as there are two trading days left in September.

The mentioned increase in turnover could show an indication of a spillover from Kraš to other equity as well. When looking at the turnover of 15 CROBEX constituents (excluding block transaction), one can observe an increase in turnover compared to September 2018 of HRK 16.2m. Of that, the highest increase came from a rise in turnover of Optima Telekom by HRK 10.92m. Next comes Podravka, whose turnover amounted to HRK 20.9m (+89% or HRK 9.87m).

YTD Performance of CROBEX

When observing the performance of CROBEX and its components in September, one can notice that the main index observed a strong increase of 4.6% this month, closing yesterday at the year highest of 1,959.7 points. The mentioned increase could mostly be attributed to the increase in share price of Podravka, Atlantic Grupa and Končar, which combined hold more than a third of the weight in the index.

Of the constituents, Podravka has observed by far the highest increase of 21.8%, with the share price closing yesterday at HRK 487 per share. Next comes Optima Telekom and Atlantic Grupa, who recoded an increase of 8.5% and 8.2%, respectively. Končar and HT follow with an increase of 6.7% and 4.4%, respectively.

Share Price Performance of CROBEX Constituents in September (until 26.9.2019)

The mentioned reclassification of the status will take effect from September 2020.

The Bucharest Stock Exchange published an announcement stating that the Global index provider FTSE Russell promoted Romania to Emerging Market from Frontier Market status, three years after the country was added to the Watch List. Note that the mentioned reclassification of the status will take effect from September 2020.

The companies to enter the index are Banca Transilvania, BRD and Romgaz.

According to FTSE Russell, these are the projected percentage weight in index of the three eligible Romanian securities in the FTSE global headline indexes based on data as of close 30 August 2019:

• FTSE Global All Cap (Large/Mid/Small) – 0.008%
• FTSE All-World (Large/Mid) – 0.009%
• FTSE Emerging All Cap (Large/Mid/Small) – 0.078%
• FTSE Emerging (Large/Mid) – 0.085%

The upgrade to Emerging Market will allow the Romanian capital market and the Romanian economy to absorb new funds and send a strong signal to both state-owned and privately held companies that they have significant room to grow on the stock exchange.