IC Market Espresso 3 Mar 2021

Activity on the ZSE in February 2021
Trading statistics for February show an average daily turnover of EUR 1,19m (-54% YoY). CROBEX ended February in green (+2.46%) at 1,830.19 points.

Relatively low liquidity on the ZSE continued in February. To be specific, total equity turnover amounted to EUR 23.83m (or HRK 180.9m). This translates into an average daily turnover of EUR 1.19m, representing an increase of 23% MoM.

Excluding block transactions, Valamar Riviera generated HRK 15.8m or 8.76%, while Podravka generated HRK 13.1m. Atlantic grupa comes third, accounting for 5.84% (or HRK 10.5m). Next come HT and Ingra with HRK 10.4m and HRK 8.9m respectively. These five shares generated around 33% turnover of the whole market (excluding block transactions).

As visible in the graph, of the observed Croatian blue chips, Optima Telekom observed the highest share price increase of as much as 8.3%, ending the month at HRK 6.5 per share. Next come Arena Hospitality Group and Končar with an increase of 6.3% and 4.0%, respectively. On the flip side, Hrvatski Telekom is the only Croatian blue chip to conclude the month in red (-2.4%).

As a result of the above-mentioned share price performance of Croatian blue chips, CROBEX ended February in green (+2.46%) at 1,830.19 points. Of the sector indices, CROBEXkonstrukt noted the highest increase of 17.87%. We note that all sector indices ended the month in green.

Share Price Performance of Croatian Blue chips in February (%)

Slovenian Insurers Kickstart 2021 on a Positive Note

In January of 2021, GWPs recorded an increase of 0.5% YoY. Of that Non-life observed an increase of 1.7%, while Life is down by 2.9%.

The Slovenian Insurance Association published their monthly update on the GWP development in Slovenia. The first month of 2021 showed a relatively solid result, as GWPs increased by 0.5% YoY to EUR 245.23m. Of that non-life segment stood at EUR 182.85m (+1.7% YoY).  

The mentioned segment, which accounts for roughly three fourths of the total GWPs, showed a relatively solid performance on the back of an increase in fire and natural forces insurance (+10.2%), coupled with other damage to property insurance (+17.2%). Meanwhile, health insurance, as the largest segment within non-life witnessed a slight decrease of 0.1% YoY.

Land motor vehicle insurance, which accounts for 13.2% of all GPWs noted a slight increase of 0.7%, while motor vehicle liability insurance noted a decrease of as much as 7%.

Top and Bottom Performing Segment January 2021 (YoY change) (EUR )

Turning our attention to the life segment, it recorded a 2.9% YoY decrease in 2020. To be specific, the entire life insurance segment amounted to EUR 62.4m. Within the segment, unit-linked life insurance observed a relatively surprising increase of 12.1%. Such a result shows a YoY growth of the unit-linked segment for the first time since the outbreak of the Covid-19 pandemic.

When observing MoM performance, total GWPs grew by 21.9%, which could be expected as many insurance policies are contracted (renewed) during January. Given the importance of January to the sector, we could argue that Slovenian insurers started the year on a relatively positive note.

We also remind that Triglav Group published their FY 2020 results, which we commented through our Company note.

Telekom Slovenije Receives a Lawsuit from T-2
Telekom Slovenije announced that they have received lawsuit from T-2 worth EUR 49.7m. The company did not disclose the background on which the damage was allegedly caused to T-2.

Telekom Slovenije announced that they have received from the Ljubljana District Court a lawsuit from T-2 for the payment of general damages in the amount of EUR 12.2m, for the payment of loss of profit in the amount of EUR 35.8m and for non-existence of claims in the amount of EUR 1.8m plus interest, fees and charges. The claim is said to represent the damage that the plaintiff is said to have suffered in the period from 1 September 2018 to 31 July 2020.

Telekom Slovenije did not disclose the background in which the damage was allegedly caused to T-2.

As a reminder, back in September of 2018, Telekom Slovenije and T-2 concluded a court settlement due to the abuse of a dominant position. T-2 demanded the payment of EUR 129.56m in compensation from Telekom, but the companies did not disclose the amount of the settlement at that time.