SLOVENIA
Insurer Sava posts 5.6% drop in Q1 profit on higher claims, lower returns
Insurance group Sava posted a first-quarter net profit of EUR 10.3 million, down 5.6% year-on-year, as higher reinsurance claims and lower investment returns affected the bottom line despite a 17.3% increase in gross written premiums. (STA)
Banka Slovenije says banks should be fine if GDP falls moderately
An analysis conducted by Banka Slovenije without taking into account state support measures suggests that banks in Slovenia would probably stay in the black this year if the economy contracts by no more than 6%. A deeper recession would on the other hand mean significant losses, the central bank said, calling for coordinated measures. (STA)
INTERNATIONAL MARKETS
Dow rallies 900 points as Wall Street cheers potential coronavirus vaccine; European markets close 4% higher as lockdown lifting continues; BELEX15 up 0.76%; Construction in Serbia not losing pace – Number of Building Permits Issued in March Higher than in 2019; Jedinstvo doubles sales in 1Q202
Stocks rallied on Monday, rebounding from losses last week, as news from a Moderna trial stoked optimism about a potential coronavirus vaccine. The Dow Jones Industrial Average traded 908 points higher, or nearly 4%. The S&P 500 gained 3.3% while the Nasdaq Composite advanced 2.4%. The Dow and S&P 500 were both on pace for their biggest one-day gains since early April.
Moderna shares rallied 25% after the company reported “positive” phase one results for a potential coronavirus vaccine. The company said that after two doses all 45 trial participants had developed coronavirus antibodies.
European stocks closed sharply higher Monday as investor confidence rose with lockdown restrictions around the world being lifted. The pan-European Stoxx 600 provisionally closed 4% higher, with basic resources stocks climbing 8% to lead gains as all sectors and major bourses traded firmly in positive territory.
In corporate earnings news, RyanAir posted a rise in first-quarter profit and revenue but warned of a “difficult” year ahead due to the coronavirus pandemic. The Irish carrier is negotiating pay cuts, unpaid leave and up to 3,000 job losses with its employees and trade unions.
BELEX15 started the week with 0.76% gain as Komercijana and Belgrade Airport advanced, 2.1% and 2.0%, respectively. The most traded name was Komercijana, with RSD 9.2m in volume. Construction company, Jedinstvo Sevojno reported 1Q2020 non-consolidated numbers where we see it more than doubled quarterly sales y/y, while operating and net profit remained at similar level, taking into account low base.
In March 2020, 1,694 building permits were issued, presenting the increase of 12.8% related to March 2019, announced the Statistical Office of the Republic of Serbia. Index of anticipated value of works in March 2020 increased by 12.4% relative to March 2019. Anticipated value of works of new construction in March 2020 amounted to 74.1% of totally anticipated value of works. (CNBC, ILIRIKA)
