IC Market Espresso 4 Oct 2019

Activity on the ZSE in September 2019

Trading statistics for September 2019 show an average daily turnover of EUR 3.87m (+257% YoY). Meanwhile, the major index CROBEX ended September with an increase of 4.81% ending at 1,963.54 points.

The Zagreb Stock Exchange (ZSE) published their trading statistics for September 2019, showing a total equity turnover of EUR 81.36m. This translates to an average daily turnover of EUR 3.87m (+257% YoY). To put things into a perspective, the turnover in September would account for almost a third of this year’s equity turnover on the ZSE. It is worth mentioning that the last time that ZSE observed such a high equity turnover was in March 2017, when the total equity turnover amounted to EUR 80.7m.

Such a high increase in turnover could be attributed to mostly to Kraš, whose share observed a turnover of HRK 370.5m(+ HRK 369.5m MoM). The sharp rise in turnover came after 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 150% increase in the share price (compared to the beginning of September). According to the Zagreb Stock Exchange, Kappa Star Limited currently owns 21.85% of the share of Kraš, making them the second largest shareholder, after Mesna Industrija Braća Pivac (30.73%). To read more about Kraš click here.

Of the total traded value traded in the period (excluding block transactions), Kraš generated 65.1%, followed by Podravka with 4.6%, HT with 4.1%, Valamar Riviera with 4%,  Optima Telekom with 3%. These 5 shares generated 80% of the turnover recorded by the entire (equity) market.

When observing the total equity market capitalization, it observed an increase of 7.4% YoY, amounting to HRK 145.5bn. Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 21.8% of the total value. Next, come two Croatian banks – Zagrebačka banka and PBZ with 13.2% and 10.3%, respectively. Further, HT holds 9.4% while Adris accounts for 4% of the total market capitalization value.

When compared to the beginning of the month the main index CROBEX recorded a sharp increase of 4.81%, ending at 1,963.54 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. Meanwhile, CROBEXnutris observed the highest increase of 49.8% of all sector indexes. This comes as no surprise since the mentioned index consists of Kraš, Podravka and Atlantic Group, which all observed a strong share price performance in September.

On the flip side, CROBEXtransport recorded the highest decrease of 19.4%. It is worth noting that on 1 October, ZSE announced a temporary cessation of calculation of the index, as Uljanik Plovidba was excluded from the index, leaving only Atlantska Plovidba in it.

Average Daily Turnover on the ZSE (EUR m)

22.7% of Purcari Shares Sold Through ABB

The mentioned sale occurred at RON 20 per share, which represents a discount of 4.8% compared to the yesterday’s closing price  

Purcari Wineries published a document on the Bucharest Stock Exchange announcing that Lormier Ventures Limited, a wholly owned subsidiary of Emerging Europe Growth Fund II (managed by Horizon Capital) disposed of all or part of the shares through an accelerated book-building process.

Horizon Capital is a private equity firm with over USD 850m under management and has been a shareholder in Purcari since 2010.

In the ABB, Lormier Ventures Limited sold 4.539.223 shares, representing 22.7% of Purcari’s share capital, which made them (as of 31 December 2018) the second largest shareholder, behind Amboselt Universal which owns 25.03%.

The mentioned sale occurred at RON 20 per share, which represents a discount of 4.8% compared to the yesterday’s closing price.