Daily Report 31.05.2019
Datum objave: 31.05.2019
Stocks rise slightly, but trade and economy worries persist; European markets close higher; Axel Springer leaps on KKR investment talks
Stocks rose on Thursday, regaining some of the losses from the previous session, but the market’s gains were kept in check as worries over the global economy and trade lingered.The Dow Jones Industrial Average closed 43.47 points higher at 25,169.88, led by McDonald’s and Coca-Cola. The S&P 500 climbed 0.2% to 2,788.86 as the real estate and tech sectors outperformed. The Nasdaq Composite advanced 0.3% to 7,567.72. The major indexes had closed lower on Wednesday, with the Dow losing more than 200 points.
Shares of software company Keysight Technologies led the tech sector higher, rising 11.3% on stronger-than-expected earnings.
In economic news, the second read on first-quarter U.S. GDP showed the economy expanded by 3.1% on an annualized basis. The 3.1% print topped a Dow Jones estimate of 3%.
European markets recovered steadily Thursday but remained on course for the year’s biggest monthly decline amid persistent escalations of the U.S.-China trade war.
The pan-European Euro Stoxx 600 finished provisionally up by 0.6% in afternoon trade, led by media stocks with a climb of 1.8%, although autos lost ground on average. The FTSE 100 ended up 0.5% higher, while markets in France and Germany made similar gains.
In terms of individual stocks, German publisher Axel Springer soared 22% after it revealed talks were underway with private equity house KKR over a potential strategic investment.
MTLC: Metalac reported slightly higher consolidated sales and 7% lower net profit, for 2018
Metalac (MTLC), kitchenware manufacturer reported its FY 20187 consolidated numbers. The company’s sales were higher by 5.9% in 2018, which is in line with the company’s expectations. Most of improvement arrived on the back of slightly higher export of own products and sales of tradable goods on Serbian market. Net profit for the period, arrived at RSD 452m, down 7% y/y, mainly on slightly reduced operating profit and worse other&financial result. The company expects low single digit growth in sales for FY 2019, implying similar or only slightly better net result as in 2018.
Source: Belex, Ilirika
EC: Strong investment activity supports growth of Serbian economy
Serbia has made some economic progress and is moderately prepared in developing a functioning market economy and economic growth has accelerated, the European Commission said in its 2019 Serbia Report. The economy has shifted up a gear. Economic growth accelerated in 2018, to over 4 pct from 2 pct in 2017, boosted by robust domestic demand and base effects. Investment activity, in particular, was very strong, benefitting from a number of factors: the low interest rate environment, higher growth expectations, past improvements in the business environment, increased capital spending by the government, and a stream of foreign direct investments, the report said.
Minimum wage to be increased in September
The Serbian minimum wage will be increased in September and salaries and pensions will also see a major increase in the second half of this year, Serbian Finance Minister Sinisa Mali has announced. "Last year, we raised the minimum labour cost from 145 dinars per hour to 155 dinars per hour, whereby the 27,000 dinar mark was exceeded for the first time. The next increase will be in September and we are working on this together with businesses and unions. We just want this to be on real foundations so that we can have a healthy economy that can handle it," Mali told B92.net in an interview.
Daily Report 23.08.2019
23.08.2019 | Dow rises slightly ahead of big speech from the Fed chief; European stocks close lower amid recession fears; investors await Fed clarity; MTLC: Metalac reports 6% higher consolidated 6M19 sales, while net profit drops 6.5% y/y; Serbia, EAEU to sign free trade deal on October 25 - Russian ambassador; Serbia's Sojaprotein says backs Victoria Group buyout bid
Daily Report 22.08.2019
22.08.2019 | Dow jumps more than 200 points, Target and Lowe's surge on strong earnings; European stocks close higher as investors await Fed minutes; Government plans to reduce tax burden on wages; Agreement with CRBC on construction of Fruska Gora Corridor to be signed by Spring 2020; Knjaz Milos acquired by Mattoni 1873, PepsiCo
Daily Report 20.08.2019
20.08.2019 | Dow rallies more than 200 points as Wall Street continues rebound from August sell-off; European stocks close higher as policy stimulus hopes grow; Greene King up 51%; New motorways could attract investors to southwestern Serbia; Almost 85% of new factories opened along Corridor 10; MTLC: Metalac to report consolidated 6M numbers on Thursday, 22th August
Daily Report 19.08.2019
19.08.2019 | Dow rallies 300 points to end another wild week on Wall Street; European stocks close higher, ending a volatile week for global equity markets; ENHL: Energoprojekt 115. on the list of largest design companies; The pipeline pushed the value of June's building permits; Dinar against the euro 117.77 today
Daily Report 16.08.2019
16.08.2019 | Dow rises 99 points led by Walmart, rebounding from worst day of 2019; European stocks close lower in choppy session; ENHL: Energoprojekt reported improved financial performances for 6M 2019; MTLC: Metalac reported non-consolidated numbers, suggesting low single digit growth in 2019 is most realistic; JESV: Jedinstvo posted jump in sales&net profit in 6M19 period
Daily Report 15.08.2019
15.08.2019 | Dow tanks 800 points in worst day of 2019 after bond market sends recession warning; European stocks close sharply lower on weak data, bond market recession warnings; FITO: Galenika Fitofarmacija made 1.1 billion dinars net profit in 1H19, down 9.8% y/y; PLNN: Planinka buys Kursumlijska Spa – Grand opening by end of 2020, necessary investments exceed EUR 10 million; NBS: Inflation remains stable at about 2.0% next two years
Daily Report 14.08.2019
14.08.2019 | Stocks jump led by Apple after US delays some China tariffs; European stocks close higher as US delays China tariffs on phones and clothing; Serbia takes first place in greenfield direct foreign investments globally; Fiat to manufacture seven-seater SUV based on "tipo" model in Kragujevac; Victoria offers RSD 180 per share for remaining stake at Sojaprotein
Daily Report 13.08.2019
13.08.2019 | Dow drops 390 points and slips back below 26,000 as bond yields decline; European stocks close lower amid trade war worries; Tullow Oil up 20%; NBS: FX reserves at EUR 12.7bn in July; NBS: Annual inflation in July at 1.6%; EUR 12 billion for investment plan, investments to be made in utility, transport, energy digital infrastructure and tourism
Daily Report 12.08.2019
12.08.2019 | Stocks fall on renewed trade war fears as Wall Street concludes volatile week; European stocks close lower as Italian banks plunge on political turmoil; Autos down 2.5%; Dinar to hit record high on Monday at 117, 6809 for one €; Talks on Belgrade-Bar railroad with Montenegro; Government again gives 21 million euro to Air Serbia
Daily Report 09.08.2019
09.08.2019 | Stocks rally, pushing S&P 500 into positive territory for the wild week; European stocks close higher as sharp fall in global bond yields stabilizes; Serbia's c-bank cuts key repo rate to 2.5%; Turnover through instant payments in July RSD 8 billion; Investment cycle to result in 5% GDP growth