The Company signed the SPA with the Republic of Croatia for an amount of HRK 36.5m.

Arena Hospitality Group published an announcement regarding execution of the Sale and Purchase Agreement with the Republic of Croatia related to Riviera Pula. The Group has been operating Guesthouse Riviera in Pula for several decades and has been in discussions with the Croatian Ministry of State Assets to formalize the informal arrangement and acquire the Property.

As previously announced by the company, further to legal proceedings initiated by the Republic of Croatia against the Company for repossession of the property and compensation and the decision of the Government of the Republic of Croatia to enter into a settlement for the aforementioned court dispute for Riviera, the Company carefully assessed the proposed settlement and decided to agree to the proposal and settle this case.

Following the settlement reached on 28 April 2020, the Company yesterday signed the SPA for Riviera with the Republic of Croatia for an amount of HRK 36.5m. Therefore, the purchase concludes the ownership status of the hotel.

The company notes that this enables the them to finally commence with the plans to reposition this property into a luxury, branded, 80 rooms hotel.

Trading statistics for May show an average daily turnover of EUR 0.91m (-3.2% YoY). Meanwhile, the major index CROBEX ended May with an increase of 5.9% ending at 1,635.37 points.

After witnessing a “green” month in April, the Zagreb Stock Exchange (ZSE) continued to see a positive sentiment which resulted in an increase of CROBEX by 5.9% MoM. The ZSE observed a somewhat of a stabilization in turnover in May with total equity turnover amounting to EUR 18.14m, which translates into an average daily turnover of EUR 0.91m (-3.2% YoY).

Of the total value traded in the period in May (excluding block transactions), Valamar Riviera generated 18.3%. HT comes second, accounting for 15.3%. Next come Optima Telekom and Adris pref. with 6.7% and 5.8%, respectively. Arena Hospitality Group follows with 5.8%. These five shares generated more than half of the turnover recorded by the entire (equity) market, excluding block transactions.

Share Price Performance of Croatian Blue Chips in May (%)

When observing the total equity market capitalization, it observed an increase of 2.6% MoM, amounting to HRK 133.60bn (EUR 17.61bn). Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 22.4% of the total value. Next, come two Croatian banks – ZABA and PBZ with 13% and 12%, respectively. Further, HT holds 10.4%.

In May, the main index of ZSE, recorded a solid increase of +5.39%, ending the month at 1,635.37 points. Meanwhile, the index is still 18.9% down on a YTD basis.

It is worth noting that all sector indices ended the month in green as well, with CROBEXkonstrukt recording the highest monthly increase of 19.06%. As a reminder, this year (in March) CROBEX recorded a sharp decrease of 20.55%. Such a high monthly decrease of the index was last time recorded in November of 2008 when CROBEX dropped by 26.7%.

Daily Changes of CROBEX (March – May 2020) (%)

Trading statistics for May 2020 show an average daily turnover of EUR 1.65m (+31% YoY). Meanwhile, SBI TOP ended the month with an 4.0% increase.

The Ljubljana Stock Exchange (LJSE) published their trading statistics for May 2020, showing a somewhat normalization in equity turnover of EUR 32.1m. This translates into an average daily turnover of EUR 1.65m (+31% YoY).

Of the total value traded in the period (excluding block transactions), Krka generated 66.5%, followed by Petrol with 7.5%. Next come NLB with 7.1% and Triglav with 5.3%. Sava Re follows with 4.9%. These 5 shares generated more than 90% of the turnover recorded by the entire (equity) market.

When observing the total equity market capitalization, it observed a 4.4% MoM increase (or EUR 271.75m) as a result of the partial bounce back and currently amounts to EUR 6.39bn.

In May, the Slovenian equity market witnessed a partial recovery, with SBI TOP increasing by 4.0% (ending the month at 833.96 points). Note that SBI TOP is still down by 9.9% on a YTD basis.

Share Price Performance of SBITOP Constituents (May 2020)

In May, the Belgrade Stock Exchange observed an average daily turnover of EUR 0.11m. Meanwhile, BELEX15 recorded an increase of 2.71%.

The Belgrade Stock Exchange reported a turnover of EUR 2.1m in May 2020 (when observing solely equity). This would translate to an average daily turnover of EUR 0.11m.

In May, the most traded share (excluding block transactions) was Komercijalna banka with a turnover of EUR 0.77m. Next come NIS with EUR 0.50m and Jedinstvo with EUR 0.31m.

Like most markets, after going through a very poor share price performance of most companies in March, certain companies on the Serbian capital market have observed a partial rebound in April as well as May. Of the BELEX15 constituents, Energoprojekt holding leads the list with an increase of 21.95%. Next come NIS and Impol Seval with +16.12% and +8.29%, respectively. Dunav osiguranje follows with +8.75%. On the flip side, Komercijalna Banka and Alfa Plam recorded a decrease of 8.00% and 6.25%, respectively.

Turning our attention to BELEX15, the index observed an increase of 2.71% in May, ending at 673.16 points. As a reminder, the index observed a considerable growth in April of 2.97%.