Rba weekly report 033.vp

14th June 2003 • RBA Croatia Weekly Report no. 33 Eurobonds followed European yields on their way up, while the spread remained slightly wider after a decline in European yields at the end of the week. Good news is that Fitch Ibca upgraded Cro- atian credit rating outlook (BBB–) from ‘’stable’’ to ‘’positive’’, but warned against maintaining such high external debt, bop and bud- get deficit levels. Such deficit levels serve as negative indicators inCroatia’s overall economic picture. Questions that Croatia needs to answer as a basis for evaluation of its EU membership application were delivered officially, as a further step towards EU.
The domestic bond market recorded higher trading levels at the end of week, while the prices were mainly under the influence of negative movements on global markets. Nevertheless, the price cutwas slightly milder, so the spreads compared to European bondsand Croatian Eurobonds were reduced. The price of the kuna bond also registered a decline under the influence of rising interest rateson the domestic market and the price decline on foreign markets.
Positive news on Croatia should help the spreads of Croatian Euro- bonds to recover to levels around 100 bps. The exchange rate on the domestic market should remain stable, so influences from foreign markets will have more weight on next week’s results. Continued op- timism could lead to a reduction in bond prices and thus have a stronger influence on domestic market, which registered a spread Source: www.biznis.hinet.hr, Bloomberg * weekly change; ** zg fixing, average price of market makers for corporate bonds The INA privatisation council chose MOL as a strate- (Risset and Deprozel). It began selling Torasemide gic partner. MOL offered US$ 420 million for the N in the UK, Pliva’s first launch for the drug. Pliva 25% plus one share in INA. The expectations were launched Deprozel (paroxetine, antidepressant) in around US$ 350 million at best. The premium MOL Croatia as first generic on that market. Registering a offered for INA is the price for becoming an impor- drug on its home market is generally a precondition tant regional player and connecting ‘’Adria" and the for marketing approval in other CEE countries.
Risset likely has the most potential in the near term,but longer-term Torasemide N is an important product for Pliva. We maintain our Buy recommen-dation and 12-month target of USD 16.2/GDR.
Pliva launched two reproduction generics in the CEE Source: INA'a annula report, Bloomberg, RBA research * discount usuall for closed-end funds, such as liquidity, transparency and market cap. discounts are not presented; Source: ZSE, VTV, RBA Macroeconomic and Financial Research Ante @igman M.Sc., Chief Economist; Macroeconomics, Politics, MM and Exchange Rates; tel: 01/4878-011, email: ante.zigman@rba-zagreb.raiffeisen.at Zvonimir Savi}, Economic Analyst; Macroeconomics, Politics, MM and Exchange Rates; tel: 01/4878-015, email: zvonimir.savic@rba-zagreb.raiffeisen.at Igor Matai}, Chief Financial Analyst; Equity Market; tel: 01/4878-012, email: igor.mataic@rba-zagreb.raiffeisen.atHrvoje Dolenec, Senior Economic Analyst; Fixed Income Market; tel: 01/4878-014, email: hrvoje.dolenec@rba-zagreb.raiffeisen.atIvana Robi}, Financial Analyst; Equity Market; tel. 01/4878-016, email: ivana.robic@rba-zagreb.raiffeisen.at Zoran Ko{}ak, Executive Director; Fixed Income Market; tel: 01/4560-839, email: zoran.koscak@rba-zagreb.raiffeisen.atDalibor Fell, Head of Customer Desk, Head of FX Desk; Money Market and Exchange Rates; tel: 01/4560-859, email: dalibor.fell@rba-zagreb.raiffeisen.at Kre{imir Kutle{a, Head of Fixed Income; Fixed Income Market; tel: 01/4560-857, email: kresimir.kutlesa@rba-zagreb.raiffeisen.atKornelija Spa~ek, Head of Equity, Equity Market; tel: 01/4890-808, email: kornelija.spacek@rba-zagreb.raiffeisen.atMarko Petras, Broker; Equity Market; tel: 01/4890-801, email: marko.petras@rba-zagreb.raiffeisen.at Goran Kralj, Fund Manager; Investment Funds; tel: 01/6003-737, email: goran.kralj@rba-zagreb.raiffeisen.atMarko Hunjak, Dealer; Investment Funds; tel: 01/6003-738, email: marko.hunjak@rba-zagreb.raiffeisen.at Raiffeisenbank Austria d.d. ZagrebPetrinjska 59, 10000 Zagrebwww.rba.hrtel. 4566-466fax: 4811-626 This publication is issued by and at the responsibility of Raiffeisenbank Austria d.d. Zagreb. The publication or any part of it cannot beconsidered an offer or invitation to purchase of any asset or right. Information, opinions, conclusions, forecasts and projections pre-sented in this publication are based on public statistic and other information from resources, the completeness and accuracy of whichRaifeisenbank Austria d.d. Zagreb relies on, but which it does not guarantee. Therefore, information, opinions, conclusions, forecastsand projections presented in this publication are liablie to changes depending on the changes of the information source, as well as tothe changes which occurred from the moment of writing the text to the actual reading of it. All securities and other assets mentioned inthis document can be an issue for taking a position by Raiffeisenbank Austria d.d. Zagreb. All such assets and rights can bear the riskon the assessment of which the stands presented in this document cannot influence. The document or its parts cannot be copied, or re-produced in any other way without quoting the source.

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