Equities in South East Europe traded mixed in the first week of July amid worries that an energy shortage might cause a recession in the Old Continent. Slovenia led the gains with the SBITOP index up 1.21% while Croatia’s CROBEX was the worst performing index, returning -1.65%.
On the monetary policy front, Romania’s central bank raised its key rate by 100bps to 4.75%, beating market consensus of a 75-bps hike and pushing the borrowing costs the highest since July 2013. The National Bank of Serbia also also hiked rates (by 25bps to 2.75%), the fourth straight rise in borrowing costs, and compared to market forecasts for a 50bps increase.
In economic releases, the Gross Domestic Product (GDP) in Romania expanded 6.40% in the first quarter of 2022 over the same quarter of the previous year, while Bosnia’s economy grew 5.5%, official data showed. Sarajevo Stock Exchange replaced five members of the SASX-FN index, the Bosnian bourse announced.
In other news, Fitch Ratings has affirmed Greece’s credit rating at BB, which stands two notches below investment grade and its outlook as Positive. Croatia has officially started negotiations on joining the Organization for Economic Cooperation and Development (OECD)
Meanwhile, Zagreb Stock Exchange, Croatia’s only stock exchange boosts its stake in Skopje counterpart to 21.99%.
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Kyriaki Balkoudi is a markets editor for World Markets Daily. She holds a bachelor’s degree in Balkans Studies from Aristotle University of Thessaloniki, Greece and a master’s degree in International Politics from City University London, UK.