For today we are bringing you an overview of the share price performance of various sectors in the regional market on a YTD basis to see how sectors performed during the first quarter of 2023.

For this, we observed primarily the median YTD share price performance of companies in our wider coverage from Croatia, Slovenia, Bulgaria, Romania, and Serbia.

2022 was marked by the Russian invasion of Ukraine that spurred a flight from equity and strong volatility that continued throughout the year. Consequently, most sectors reported a negative price movement with more than half of the sectors in red reporting a double-digit decline at a few given points. However, the first quarter of 2023 was characterized by positive development in the regional equity markets overall as participants saw the risks tempering with other risks coming to the surface during the previous few weeks.

Observing the graph below, we can see that the shipping sector has by far the largest increase with a median YTD share price increase of 25.9%. Shipping was primarily driven by Uljanik Plovidba, which noted a share price increase of as much as 77%. However, both Atlantska Plovidba and Jadroplov also noted solid returns of 19.7% and 25.9% YTD. Overall, the Shipping sector in the region outperformed other ones without a doubt.

The shipping is followed by Pharma with also high median YTD share price performance of 18.1%. However, we note the sample for this category is relatively small and might not be representative on a wider scale. Nevertheless, we note that Krka drove this sector. 2022 started shaky for Krka due to the geographical exposure to Russia, but nevertheless noted a solid year for its operations. Sales picked up 22.1% in Q4 due to quantities growth and an increase in prices of OTC medicine. Krka’s bottom line was further amplified by positive net financial results coming mainly from the rouble FX gains of EUR 44m.

Insurance follows with also an attractive double-digit yield of 14.3%. The regional insurance sector was mainly driven by Slovenian insurers, Triglav and Sava Re. Both companies noted growth in GWPs and solid combined ratios, but slightly lower profitability. Nevertheless, those companies should long-term benefit from a higher interest rate due to their portfolio being invested with higher yields.  Utility and Diversified follow with a median YTD share price increase of 11.5% for both categories. Romanian Transelectrica, Transgaz and Conpet mainly drove the regional utility. However, we emphasize the price movement was volatile and if a slightly different time frame was used, returns could vary significantly due to previously high energy prices on a global scale. Diversified noted a positive development due to Petrol, Podravka and Adris. Telecommunication and Tourism follow with 11.2% and 9.9% YTD returns, respectively.

Overall, each remaining sector also noted a positive YTD return, with Construction as the only exception with a slight 1.7% YTD decline.

YTD Returns by sector (%)

Source: Bloomberg, InterCapital Research

According to the proposed amount, the dividend yield is 6%, while the ex-date is set for 28 July 2023.

Purcari published the dividends proposal of accumulated profits in the amount of RON 0.55 per share. We note that the dividend yield is 6%, while the ex-date is set for 28 July 2023. Meanwhile, the payment date should be on or about 18 August 2023. As a reminder, the company did not pay out a dividend in 2020, while RON 1.3 DPS was paid in 2021 with a yield of 4.6%. During 2022, Purcari paid a slightly lower dividend compared to this year of RON 0.51 DPS.

To read more about Purcari, click here.

Dividend per Share (RON) and Dividend Yield (%) (2014 -2023)

Source: BVB, InterCapital Research

In March 2023, BELEX15 increased by 1.72% MoM, ending it at 891.29 points.

The latest trading activity report has been released by the Belgrade Stock Exchange, Belex, for the month of March 2023. In the report, we can see that the total equity turnover on the exchange amounted to EUR 2.87m, representing a decrease of 31% YoY, and 18% MoM. This would also mean that the average daily turnover amounted to EUR 130.3k.

In terms of the companies, the most traded shares were the ones of NIS, with a turnover of EUR 1.64m, and a 0.13% change. Following them, we have Dunav osiguranje, with a turnover of EUR 305.3k, remaining unchanged in relative terms, Lasta, with a turnover of EUR 230.9k, with a decrease of 23.4%, Žitopek, with a turnover of EUR 209.7k, with an increase of 19.2%, and finally, Aerodrom Nikola Tesla, with a turnover of EUR 170.5k, and a 5.3% change.

In terms of gainers and decliners, the largest increase was recorded by Dinara, at 59.8%, Putevi, at 47%, and Iritel, at 20%. On the other hand, the largest decliners were Trgocentar at 50%, Institut za ispitivanje materijala at 27.8%, and Lasta, at 23.4%.

Lastly, the primary index on the exchange, BELEX15, recorded an increase of 1.72% during the month, ending it at 891.29 points.