ZAGREB STOCK EXCHANGE EXPERIENCES MONTH OF LULL

ZAGREB, Aug 6 (Hina) - July was a month of lull on the Zagreb stock exchange, which registered a decrease in trade and the prices of shares in relation to the month before. The trade on the Zagreb stock exchange in July amounted to a mere 27.5 million kuna, which is a decrease of one third in relation to the June trade. According to Zagrebacka Banka brokers, one will have to wait for another boom on the Croatian market probably until the beginning of the pension reform and trading in the stocks of public companies currently undergoing privatisation. After a take-off on the Zagreb stock exchange, which followed the resolution of the Kosovo crisis, the value of the independent index of the Zagrebacka Banka, ZSI Gen, registered a considerable decrease going below 38 points, as did the trade. The deterioration of the economic, political and social situation in Croatia is a major obstacle to good shares, the Zagrebacka Banka 'Newsletter' said. This results in a small number of foreign investors buying stocks, regardless of the analyses and recommendations by respectable investment companies. Brokers recommend the shares of the Croatian pharmaceutical company 'Pliva'. However, despite the good sale of Zithromax, Pliva's major income generator, the price of its shares has been decreasing. Nevertheless, after the announcement of results of the first six months of 1999, all analysts reiterated their recommendation on buying Pliva shares, since the prices of Pliva shares are expected to recover significantly within a short period of time. Analysts also recommend the purchase of Zagrebacka Banka shares, whose closing price in July was 600 kuna. A considerable turnover was realised in July through the sale of shares of the hotel company Plava Laguna. The shares of the Rijecka Banka are proving to be increasingly liquid, whereas the Commercial Bank also registered an increase in trade. (hina) rml