February 6 (SeeNews) - A drop on global stock markets has spilled over to Croatia, causing downward corrections on the domestic market, an analyst with Croatia's Erste told SeeNews on Tuesday.
Stock market indices in Asia and Europe fell on Tuesday sparked by a plunge in U.S. stocks the day before.
The 25-share benchmark CROBEX index of the Zagreb Stock Exchange fell sharply in morning trade on Tuesday, bourse data showed.
The CROBEX stood at 1,829.54 points by 10:23 CET, down 3.04% from Monday's close, according to ZSE data. By 12:20 CROBEX fell further, by 3.09% from a day earlier and stood at 1,828.69 points.
The narrower of the ZSE's two blue-chip indices, the CROBEX10, which had lost 2.56% to 1,061.64 points as at 10:23, fell slightly to 1,061.61 points at 12:20.
"Equity markets are interlinked in a globalised world, and uncertainty among investors can be manifested quickly in markets that are not directly affected," Davor Spoljar said in response to a SeeNews inquiry.
Asked to predict how long the decline will last, Spoljar said: "Macroeconomic data in Croatia so far seems healthy, and the yield spread on domestic bonds indicate a reduced risk premium, which are usually factors that act positively on stock markets."
Spoljar warned, however, that investors on the ZSE are waiting for the situation in the ailing concern Agrokor to unravel.
"For investors on the domestic capital market, an important event will be the resolution of the situation in Agrokor."
By 10:41 CET, trading turnover on the Zagreb Stock Exchange totalled 7.2 million kuna ($1.2 million/968,400 euro), which is at the level of full day turnover seen as recently as last week. By 12:20, turnover had increased further, to 10.7 million kuna.
Most company stocks traded lower on Tuesday morning, with civil engineering company Institut IGH [ZSE:IGH] leading the blue-chip decliners with a loss of 9.46%. Peer Ingra [ZSE:INGR] followed with a loss of 7.83%, after leading the blue-chip gainers on Monday.
By 12:20 Institut IGH was overtaken as the biggest blue-chip loser by shipping company Atlantska Plovidba [ZSE:ATPL] with a decline in stock price of 10.06%. At the same time both IGH and Ingra were down 9.91%.
Croatian hotel operator Valamar Riviera [ZSE:RIVP] recorded the highest trading turnover on Tuesday morning, which rose to 4.1 million kuna as of 12:20 CET from 2.4 million kuna at 10:32 CET.
(1 euro=7.43509 kuna)