Macroeconomics
- Industrial production – In April, the growth rate was 9,4%, the highest since August 2006;
- market comment – stock market reported HRK 638,7 million in stock trading last week, while CROBEX went 2,7% down;
Bonds
- Weekly comment on trading – total bond turnover last week amounted to HRK 547,4 million, CROBIS rose 0,1%;
Macroeconomics
Industrial production volume index
The total industrial production was by 9.4% higher in April 2007 than in April 2006. vs. 5,7% and 9,0% in February and March, respectively. The mentioned annual growth rate was the highest since August 2006. As compared to the average monthly production in 2006, the industrial production in April 2007 increased by 3.4%.
According to the MIGs 2001 aggregation, in April 2007, as compared to April 2006, durable consumer goods were by 28.2% higher. Energy was the only category that posted a decrease in the observed month of 0.6% on the annual basis.
As opposed to the previous seven months when it has been registering the highest rates, the production in Mining and quarrying was only by 4,0% yoy higher. The main reason for this slower growth is slower growth posted by Other mining and quarrying item, of 3,8%. In March, the mentioned category posted production increase of 16,9% yoy.
Same as in the previous month, the manufacturing as the most important category within the NKD 2002 sections recorded an over average growth of 12,5% which is also the highest rate since June 2005. This increase was mainly driven by publishing manufacture (13,9%) and manufacture of other non-metal mineral products (16,6%). Among less important categories, the highest production growth was registered by Manufacture of radio, television and communication equipment and apparatus and Manufacture of electrical machinery and apparatus which rose by 40% and 31,5%, respectively. Manufacture of rubber and plastic products and Manufacture of wearing apparel were the only categories the production of which decreased by 3,2% and 2,2% yoy, respectively.
Electricity, gas and water supply continues with production decrease trend as it decreased by 5.3% in April 2007. This negative trend in the mentioned sector lasts since November 2006.
Industrial production volume index by categories (table)
Capital market
market comment
Last week, domestic securities market experienced a drop in stock prices. The stock index of the Zagreb Stock exchange, CROBEX, declined by 2,7%. The total stock turnover amounted to HRK 638,7 million. The regional CECEEUR decreased by 0,2%.
At the end of the past week, the share price of Ina fell sharply which partially affected domestic index to fall. The probable reason for these movements were speculations regarding the price at which will the Government offer to Ina’s employees 7% of the share capital. During the last week, the Ina share decreased by 7,5% on a total turnover in amount of HRK 45,9 million. The lock up period for Ina shares that refers to Ina, the Government, Mol and War Veterans Fund is ending on 1st of June.
Last week, sugar factory Viro was the most traded stock as in one block transaction the total of 46.000 of Viro shares changed the holder. The total turnover of this transaction amounted to HRK 59,800 m. According to the report furnished to the stock exchange, two members of the Supervisory board were the sellers in the transaction. The price in this transaction amounted to HRK 1.300 while on Friday the price was closed at HRK 1.400 which gives a weekly price drop of 1,8%. Over a year ago, the Viro shares were offered at ipo price of HRK 365.
Last week, the IGH share experienced a price increase of 5,8%. The probable reason for this was signing of contract between IGH and Hrvatske željeznice according to which the IGH will make project documentation for reconstruction of an existing and construction of second track of Botovo – Zagreb – Karlovac railway and for construction of totally new Karlovac – Rijeka railway. The total value of IGH’s contract is some HRK 74,9 million.
The same event was probably the reason for active trading with the Luka Rijeka share and its weekly price growth of over 48%.
It is expected that beside Luka Rijeka and Institut gradevinarsta Hrvatske, from the construction of above mentioned railway could be benefiting some other construction companies too.
Last week, construction company Tehnika lost 1,9%. which was probably caused by weak Q1 results. The company reported 11,9% lower sales and a decrease in all aspects of profitability. Net income fell by 50,3% to 6,4 m HRK giving the quarterly EPS of HRK 35,8. EBITDA fell by 49,9% from HRK 20,7 million to HRK 10,4 million. This came as a result of increase in raw material costs (caused by increase in prices of building material and iron) and an increase in provisions and adjustments. In Q1 07 this item totaled to HRK 9,3 million, while in the same period of 2006 there were no provisions and adjustments booked. Depreciation rose by 11,2% to HRK 4,4 million making the EBIT of HRK 5.9 million, or 64.5% lower yoy
Within the last week was the ex-dividend date for shareholders of the Ericsson Nikola Tesla shares. In a week time the ENT lost 10,6%.
The preferred share of Adris Group experienced weekly price drop of 2%. In the same time the total weekly turnover amounted to HRK 32,5 million.
Last week, among rare two digit gainers were the shares of Zvijezda, the price of which increased by 27,3%, SN holding by 10,7%, Slatinska banka by 12% and Konzum by 17,7%.
The biggest liquid losers last week were already mentioned ENT, Transadria and Puljanka.
CROBEX index - Zagreb Stock exchange (chart)
Weekly performance (table)
market MULTIPLES – industry STOCKS (table)
market MULTIPLES – BANKING SECTOR (table)
market MULTIPLES – FORMER privatization FUNDS (table)
BONDS
GOVERNMENT BONDS (table)
MUNICIPAL BONDS (table)
CORPORATE BONDS (table)
GOVERNMENT EUROBONDS (table)
Yield curve (chart)
Total bond turnover last week amounted to HRK 547,4 million and CROBIS rose 0,1%;
***
This report was prepared, presented and authorized by FIMA FAS Ltd based on publicly available data, own data, independent analysis and other data
considered to be reliable, but which accuracy is not guaranteed. All data included in this report represent our analysis on date marked in report and are
subject to changes. FIMA FAS Ltd, its management and employees cannot be responsible for any damage that was caused by this report. Information
presented cannot be regarded as recommendations for buying or selling any stocks.
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FIMA weekly report20070521, 348 Kb
