At the current share price dividend yield is 8.2%

Zagrebačka Banka (ZABA) published a Convocation to the GSM in which the Management and Supervisory Board proposed HRK 1.55bn to be distributed as dividends, translating into a payout ratio of 88%.

Such a dividend proposal translates to a dividend payment of HRK 4.83 per share, which is HRK 0.96 per share lower compared to the previous year. At the current share price dividend yield is 8.2%.

Note that the ex-date is 15 April 2020, while payment date is 6 June 2020.

In the graph below, we are bringing you historical overview of the company’s dividends.

Dividend per Share (HRK) & Dividend Yield (%) (2012 – 2020)

*compared to the share price a day before the dividend proposal

The Ministry of Public Administration of the Republic of Croatia and a consortium headed by Ericsson Nikola Tesla signed a Deal worth HRK 17m. The duration of the contracted activities is 24 months.

Ericsson Nikola Tesla published a document on the Zagreb Stock Exchange announcing that the Ministry of Public Administration of the Republic of Croatia and a consortium headed by Ericsson Nikola Tesla, with the participation of Apsolon company, have signed a contract for the introduction of a quality management system in public administration.

The company notes that the contract is worth over HRK 17m, while the duration of the contracted activities is 24 months.

The contracted activities include the development of an IT system which will provide support to process and quality management in public administration. The project aims to optimize and standardize a great number of processes and services in public administration. This will streamline the process of providing public services.

Trading statistics for February 2020 show an average daily turnover of EUR 2.62m (+132% YoY). Meanwhile, the major index CROBEX ended February with a sharp decrease of 8.72% ending at 1,863.40 points. Such a decrease could be attributed to the spread of Coronavirus and the spillover of global sentiment on domestic market.

The Zagreb Stock Exchange (ZSE) published their trading statistics for February 2020, showing a total equity turnover of EUR 52.3m (HRK 389.2m). This translates to an average daily turnover of EUR 2.62m (+132% YoY). Such a high increase in turnover could be attributed to the selloff, which occurred in late February. The mentioned selloff was triggered by the spread of Coronavirus and the spillover of global sentiment on domestic market.

As a reminder, last month it appears that markets in general have started to give a heavier weight to potential risks relating to Coronavirus. When observing our region, we believe that such a market reaction is even more pronounced since the virus outbreak hit northern Italy – which not only is a strong trading partner but is also geographically in proximity to both Slovenia and Croatia.

Besides that, the local market seems to have witnessed a spillover of the sentiment on global markets, which have also been observing many trading days in red in late February.

Of the total value traded in the period in February (excluding block transactions), HT generated 17.6%. Valamar Riviera comes second, accounting for 11.6%. Next come Zagrebačka Banka and Adris preferred with 7.4% and 7.3%, respectively. Ericsson NT follows with 6.6%. These five shares generated roughly half of the turnover recorded by the entire (equity) market, excluding block transactions.

When observing the total equity market capitalization, it observed an increase of 5.9% YoY and a 3.3% decrease MoM, amounting to HRK 145.52bn. Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 21.2% of the total value. Next, come two Croatian banks – PBZ and ZABA with 13.3% and 12.6%, respectively. Further, HT holds 9.7% while Adris accounts for 3.4% of the total market capitalization value.

Performance of CROBEX in 2020

As a result of the above-mentioned selloff, CROBEX recorded a sharp decrease of 8.72%, ending at 1,863.4 points. Such a high monthly decrease of the index was last time recorded in March of 2017 when CROBEX dropped by 10.43%. It is also worth noting that all sector indices ended the month in red, with CROBEXturist recording the highest decrease of 9.35%.

Turning our attention to the share price performance of the CROBEX constituents in February; all 15 of them ended the month in red, with Optima Telekom leading the list with -28.32%. Next Come Đuro Đaković and Atlantska Plovidba with a decrease of 24.2% and 17.7%, respectively.

Share Price Performance of CROBEX Constituents in February (%)

Trading statistics for February 2020 show an average daily turnover of EUR 1.7m (+54% YoY). Meanwhile, SBI TOP ended the month with a 6.64% decrease.

The Ljubljana Stock Exchange (LJSE) published their trading statistics for February 2020, showing a total equity turnover of EUR 33.96m. This translates to an average daily turnover of EUR 1.7m (+54% YoY).

Of the total value traded in the period, Krka generated 36%, followed by NLB with 19%. Next come Petrol with 16% and Sava Re with 7.4%. Triglav follows with 7.3%. These 5 shares generated 85% of the turnover recorded by the entire (equity) market.

When observing the total equity market capitalization, it amounts to EUR 6.92bn (-6% MoM). Krka’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 33.4% of the total value. Next, comes NLB with 18.1%. Further, Petrol holds 11% while Triglav accounts for 10.9% of the total market capitalization value.

The main index of the stock exchange, SBI TOP, recorded a sharp decrease of 6.64%, ending the month at 907.0 points. Note that such a monthly decrease was last time observed in November of 2019 when the index dropped by 7.5%. The mentioned decrease of SBI TOP could be attributed to the spread of Coronavirus and the spillover of global sentiment.

As a reminder, last month it appears that markets in general have started to give a heavier weight to potential risks relating to Coronavirus. When observing our region, we believe that such a market reaction is even more pronounced since the virus outbreak hit northern Italy – which not only is a strong trading partner but is also geographically in proximity to both Slovenia and Croatia. Besides that, the local market seems to have witnessed a spillover of the sentiment on global markets, which have also been observing many trading days in red in late February.

Share Price Performance of SBI TOP Constituents in February

In February, the Belgrade Stock Exchange observed an average daily turnover of EUR 0.38m.

The Belgrade Stock Exchange reported a turnover of EUR 6.68m in February 2020 (when observing solely equity). This would translate to an average daily turnover of EUR 0.33m.

In February, the most traded share (excluding block transactions) was NIS with a turnover of EUR 0.76m. Next come Alfa Plam with EUR 0.53m and Messer Tehnogas with EUR 0.47m.

When observing gainers of the BELEX 15 index, Komercijalna Banka (preferred) recorded the highest increase of 11.11%. As a reminder, last month NLB Group entered into a share purchase agreement with the Republic of Serbia for the acquisition of an 83.23% ordinary shareholding in Komercijalna Banka. NLB acquired the 83.23% shareholding for the amount of EUR 387m, which will be payable in cash on completion. Such a price puts the transaction multiple at P/B 0.77 and P/E 6, while it implies a valuation of EUR 465m for the 100% stake in Komercijalna Banka. To read more about it, click here.

Of the top gainers, Jedinstvo comes second with an increase of 9.5%, followed by Messer Tehnogas with an increase of 6.2%. On the flip side, NIS observed the highest decrease of 4.5%.

Turning our attention to BELEX15, the index observed a decrease of 1.13%, ending at 799.08 points.