ZAGREB STOCK EXCHANGE ISSUES REPORT ON SEPTEMBER RESULTS

ZAGREB STOCK EXCHANGE ISSUES REPORT ON SEPTEMBER RESULTS ZAGREB, Oct 9 (Hina) - The prices of most active shares on the Zagreb financial market dropped in September, which reflected on the value of the Zagreb Stock Exchange official index, Crobex, which decreased by 0.7 percent to 823.7 points, Zagreb Stock Exchange brokers said in their latest newsletter. Nevertheless, trading in both shares and bonds was brisker than in August. The total turnover at the Zagreb Stock Exchange in September amounted to 232.4 million kuna (about US$27.66 million), which is a 59.9 percent increase compared to August. The bonds of the Croatian Health Insurance Institute (HZZO) accounted for 56 percent of the overall trade (130.7 million kuna). At the end of the month, their price equalled the nominal price (of one euro). In the segment of shares, the Zagrebacka Banka accounted for more than 63 million kuna, whereas the Dalmatinska Banka accounted for 18.4 million kuna of the total turnover. In the first six months of 2000, the results of the Zagrebacka Banka Group were six times better than last year, however, despite that the price of Zagrebacka Banka shares dropped to 1,325 kuna, which, according to brokers is the result of a drop in the value of the dollar following an intervention by EU, United States' and Japan's monetary authorities, aimed at strengthening the European currency. Trading in Dalmatinska Banka shares started to increase in late September after the Croatian National Bank (HNB) approved the purchase of 65 percent of shares to the investment fund Regent Europe Limited. There are plans to refinance the bank at a price of 300 kuna per share, which should increase the bank's capital by 32 percent, brokers explain. A public tender has also been mentioned but the price is not known as yet. The pharmaceutical company Pliva also felt the consequences of the drop in the value of the dollar, but unlike the Zagrebacka Banka its results at the end of September were positive, with a 2.25 percent increase in the price of shares (460 kuna). The food industry Podravka and the overhaul shipyard Viktor Lenac also published their results for the first six months of this year. Podravka's net profit amounted to 21.4 million kuna or 21 percent more than in the same period last year. However, the market price of Podravka's shares on the monthly level dropped by 7.6 percent. The income of Viktor Lenac in the first six months amounted to 188 million kuna and its net profit amounted to 4.5 million kuna. Since the result was below the company's plan, the price of shares decreased by 17.6 percent. (hina) rml