Friday, November 30, 2007

CROBEX finishes 1,04 % up


Zagreb,

This week CROBEX finishes 1,04 % up.
After speculations about new government most
investors agree that the slow mood of market is not so influenced by the politics. They believe and I agree that current situation is managed by market speculations and stand by of big players - mutual and pension funds who are waiting for stabilzation of market and the end of bear seasion of small investors who in panics sell stocks gained on IPO of national Telecom provider -Croatian Telecom (HT-R-A ;343,oo Kn; - 1,04%).
Seneka
For tickers see: http://www.zse.hr/

Croatia governing party to seek partners

A five-seat edge for Croatia’s ruling conservative party after Sunday’s election has put the prime minister, Ivo Sanader, in a strong position to lead the country to membership in the European Union in the next four years.
Official results published on Monday, based on a nearly complete vote count, gave 61 seats to Mr Sanader’s Croatian Democratic Union (HDZ), compared to 56 for the opposition Social Democratic Party (SDP), before counting the right-leaning Croat diaspora.
But neither party conceded defeat, and both said they were talking with potential coalition partners legislature of around 150 seats. The country’s president, Stjepan Mesic, said he would offer the mandate to whoever had the best chance of forming a solid majority.
As the vote count mounted Sunday night, Mr Sanader welcomed “certain” victory. “Croatian voters have shown that they trust the HDZ and the policies we’ve been implementing in the last four years,” he said.
Before coming to power at the head of his current minority coalition, he transformed the hard-line nationalist movement that had led the ex-Yugoslav republic to independence in the early 1990s into a moderate party aiming for compliance with EU standards.
But the HDZ faced a strong challenge from the equally pro-EU SDP, revitalised by new leadership after the death of the ex-communist reformer, Ivica Racan, earlier this year.
The new leader, Zoran Milanovic, has brought the party its strongest election result yet, although the 4.4 million eligible voters did not warm sufficiently to the SDP’s separate candidate for prime minister, the technocratic former economy minister, Ljubo Jurcic, analysts said. Turnout was 63.5 per cent in Croatia and around 25 per cent in the diaspora.
The roughly 100 000 voters in the diaspora, primarily based in Bosnia-Herzegovina, are expected to cement the HDZ victory with five more seats. Mr Sanader campaigned hard in the neighbouring country, whereas the SDP said it disagreed with participation by voters outside Croatia.
The simplest ruling coalition now would be between the HDZ and the third-place grouping led by a party for farmers, which might demand the ministry of agriculture, a critical post for upcoming EU negotiations, political observers said.
Another narrow-interest group, the pensioners’ party, lost votes apparently to the HDZ after the government paid a backlog of pension debt last week. The SDP has natural allies among smaller centre-left parties, but it would need more than one partner to form a coalition.
Economic policies either way will be aimed mainly at EU accession, which the bloc says will require stronger anti-corruption measures. Croatia is in line to become the 28th EU member, although Mr Sanader’s promises to be ready by 2009 look over-optimistic.
Copyright The Financial Times Limited 2007 http://www.ft.com/

Growth of personal consumption, prices of shares and apartments next year

Growth of personal consumption, prices of shares and apartments next year

30.11.2007 9:51:00 Powered by PressCut

At yesterday’s session, Ivo Sanader’s cabinet adopted the Pre-Accesion Economic Program (PEP) for the 2008-2010 period. The government expects the private sector and personal consumption to be the main generators of economic growth, which should reach 6.1 percent next year. According to the PEP, the key guidelines of the government’s operation will not change. The stress is on the macroeconomic stability, reducing deficit and state share in public debt, reforms of administration and judiciary, and privatization of sectors dependent on state subsidies. The government expects the real growth of personal consumption to reach 5.4 percent in 2008 and roughly 5.1 percent in the following two years, as a result of the projected growth of salary mass due to growth of employment and salaries in the increased economic activity. They also believe that consumers’ optimism will be stimulated by a further growth of their assets. Prices of real property should increase, as well as the value of financial assets, such as stocks and shares in investment funds.

From: http://www.poslovni.hr/

Intro -edu: Croatian capital market

Croatia belongs to the group of Middle and Eastern European countries in transition from earlier state regulated market towards politicaldemocracy and free market economy tending to be included in all European and worldwide integrations.

The trading in volume and rates is rising constantly since beginnig of 1990's.

The trading place today is Zagreb Stock Exchange http://www.zse.hr/ and the main Index is CROBEX.