IC Market Espresso 7 Apr 2020

 
CROBEX Ends the Trading Session With a Solid Increase

CROBEX ended yesterday’s trading session with a sharp increase of  5.06%, closing at 1,581.19 points.

Croatian equity market recorded another day in green, with CROBEX recording the second highest daily increase this year of 5.06%. Meanwhile, CROBEX10 observed an increase of 5.21%.

The main index of the ZSE ended the trading session at 1,581.19 points, which is still a decrease of 21.6% YTD. Meanwhile, 48 out of 52 traded stocks ended the day in green.

YTD Daily Changes of CROBEX (%)

Of the CROBEX10 constituents, 9 ended the trading day in green, while Optima Telekom was the only share to end the trading session in red (-2%). Of the consitutens, AD Plastik leads the list with an increase of 14.1%, followed by Atlantska Plovidba which recorded a 8.5% increase. Next comes Valamar with a sharp increase of 8.3%, ending the day at HRK 27.3 per share. At the current share price Valamar is traded at a P/E of 12.1 and EV/EBITDA of 8.3.

Share Price Performance of CROBEX10 Constitunets (%) (6 April 2020)

Turning our attention to the turnover, ZSE once again witnessed a very high turnover of HRK 39.6m (or EUR 5.19m), of which Valamar accounted for HRK 6.9m, while HT accounted for HRK 4m.  

Adris Will Not Layoff Any Employees

Besides that, the company states that it will realize already contracted and ongoing investments and will continue to prepare for planned projects.

Adris published a document on the Zagreb Stock Exchange announcing that the Management Board of the Group, with the consent of the Supervisory Board, has made a number of decisions that will affect the related business companies, primarily their liquidity and profitability, and long-term sustainability of the company in the new circumstances.

Among other things, regardless of the current circumstances locally and globally, Adris decided that there will be no employee layoffs. Besides that, the company states that it will realize already contracted and ongoing investments and will continue to prepare for planned projects.

Adris also notes that despite solid performance achieved in 2019, strength and potential of its companies and given the current circumstances, the management of the company will reduce its wages by 30% for the next 3 + 3 months.

Activity on the BVB in March 2020

Trading statistics for March 2020 show an average daily turnover of EUR 14.85m (+66% YoY).

The Bucharest Stock Exchange published their trading statistics for March 2020, showing an average daily turnover of EUR 14.85m, representing a sharp increase of 65.9% YoY. Such a high increase in turnover could be attributed to the selloff which started in late February and continued in March, causing stocks to plummet.

When observing the top traded shares, one can notice that Fondul Proprietatea recorded the highest turnover of RON 452.96m. Banca Transilvania follows with a turnover of RON 406m. Next come Romgaz with RON 153.7m and BRD with 119.4m.

As a result of the above mentioned seloff, the market cap of the BVB recorded a decrease of 26% MoM, amounting to EUR 24.93bn. Of the equity market capitalization, Erste Group Bank accounts for 29.58%. Omv Petrom and Romgaz follow with 13.66% and 8.96%, respectively. Banca Transilvania and Fondul Proprietatea come next, accounting for 7.87% and 7%, respectively. These five companies account for roughly two thirds of the market capitalization.

Turning our attention to the main index of the BVB, in March, BET observed a sharp decrease of 16.4%, ending the month with 7,625.38 points. Such a high decrease was last time seen in December of 2018, when the index dropped by 14.8% amid governments tax proposal.

It is important to note that all BET index constituents ended the month in red, with 11 of them recording a double-digit drop. Alro recorded the highest decrease of 32.9%, followed by Sphera Franchise Group which recorded a 29.6% drop.

Share Price Performance of BET Constituents in March (%)