FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
ZAGREB STOCK EXCHANGE
CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK
In the period until 1 July 2013 all EU member
states are to ratify the Treaty finally making
Croatia an EU member state. After winning the
parliamentary elections on 4 December, the
centre-left coalition formed the Government,
having sat on opposition benches for eight
years. The new Government faces a heavy
task of curbing economic recovery amid
unfavourable developments in the environment.
In Q1 2012 we expect investors to focus
primarily on news from the economic and
political scene, to be more exact, developments
in the euro area, and to a lesser degree on
companies’ fundamentals. Macroeconomic
outlook for the majority of CEE countries is
not rosy (except for Poland) due to their high
dependence on exports to euro area markets.
Therefore, equity markets will not receive
support from this side. Despite relatively
favourable internal factors of some markets,
we expect the external influences to prevail,
pushing down all indices in the region.
Risk aversion and investor reluctance fuelled by
the European debt crisis is expected to continue
in the domestic market in 2012. Therefore, we
do not expect significant changes or increase in
turnover until the improvement in the economic
situation occurs. Investors will surely monitor all
the moves of the new Government. The possible
privatisations of state-owned companies due to
the public finance situation could bring some life
and optimism to the Zagreb Stock Exchange in
2012, provided they are carried out through the
stock exchange.*
* Raiffeisenbank Austria d.d.
Economic Research Department
Key Information Contacts
Croatian Agency for Supervision of Financial Services www.hanfa.hr
Ministry of Finance www.mfin.hr
Croatian Government www.vlada.hr
Croatian National Bank www.hnb.hr
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