SERBIA:

FITO: Fitofarmacija reported 16% drop in FY 2017 net profit on higher tax & FX loss
Galenika Fitofarmacija (FITO), plant protection application manufacturer, reported RSD 754.1m in its FY 2017 net profit, down 16.3% y/y on higher tax and solid FX loss. Even though consensus do not exists, we believe this was lower than overly expected. The company spent all of its tax credit in 2016 and 2015, thus tax reliefs were not possible in 2017, which resulted in a higher tax amount. Other negative factor that impacted net line was FX loss which emerged on the back of RSD appreciation against EUR and USD, which resulted in a lower value of FX denominated receivables and deposits. Operating profit in the period was at RSD 1bn, flat y/y, while sales arrived at RSD 3.96bn, up only 1.6% y/y. Symbolic growth in sales was due to the fact that second half of the year brought very drought season thus farmers had no need to treat crops, almost at all. Export, which has just started into EU countries was only symbolic at EUR 170ths but it is expected to be much better in this year. Export of frozen products, was lowered to RSD 89m, due to drop in prices, while revenues from grains were at typical RSD 252m. The company expected to see up to 20% higher sales in 2018, mainly on higher export, while operating profit, according to the reported plan, should remain at RSD 1bn. Expectation for net profit was not showed but if we calculate with stable RSD rate and tax amount, then we will probably see a recovery to around RSD 900m.
Source: FITO, Ilirika

NIIS: Excise taxes on petroleum products increased – Price of petrol at gas stations to remain the same for now
The Government of Serbia has harmonized the excise taxes on petroleum products with the last year's growth of consumer prices. The excise taxes are in force since Saturday, March 17, 2018. The increase will not influence the price of fuel at gas stations for now, oil companies say, as the price of raw oil is dropping globally, whereas the dollar is weakening. The excise tax on unleaded petrol will be RSD 54.95 per liter, an increase by 1.6 dinars, whereas the excise tax on diesel fuel will be RSD 56.50, an increase by 1.64 dinars.
Source: Ekapija

NLB Bank to sell NPLs in Serbia
NLB Bank has started seeking investors interested in purchasing the portfolio of non-performing loans in Serbia. The NPLs amount to a total of around EUR 115 million, and there's also a smaller portfolio of real estate. The Serbian company for resolving the issue of NPLs is also up for sale, NLB announced through the Ljubljana Stock Exchange webpage. NLB is looking for a purchaser for its NPLs in Serbia with the help of its financial advisor PwC Consulting Belgrade.
Source: Ekapija

REGION:

Slovenian index SBITOP gained 0.24 percent yesterday
SBITOP index went beyond 825-point mark, reaching 825.29 points and thus gaining 0.26 percent yesterday’s trading day. The stocks that gained the most yesterday were the stocks of Intereuropa (IEKG, +6.6%), KD Group (KDHR, +4.23%) SALUS (SALR, +0.98%). On a YTD basis, SBITOP index is up over 2%. The stocks with highest YTD returns are the stocks of Gorenje (GRGV, +15.3%), SavaRe (POSR, +12%) and Zavarovalnica Triglav (ZTVG, +9%). Stocks that lost the most YTD are the stocks of Cinkarna Celje (CICG, -5.5%) and Unior (-4.8%).
Source: Ilirika

Growth of FDI in Slovenia
Foreign direct investments in Slovenia increased by EUR 98 million in January 2018, while in the last 12 months they increased by EUR 630 million.
Source: Central Bank of Slovenia.

Slovenia with the highest growth in construction in the Eurozone and EU
The volume of construction in January decreased both in the euro area and in the EU relative to December. In the countries with the euro it was down by 2.2 percent and in the EU, it went down by 2.1 percent. Slovenia was on the positive side as it recorded the highest growth in construction (14.4 percent growth), according to Eurostat data from the European Statistical Office. Slovenia also ranked the first among the Member States at an annual level, as the volume of construction work in the country increased by as much as 76 percent. Followed by Hungary (+43.1 percent) and the Czech Republic (+33.6 percent). The decline was recorded by Spain (-3.6 per cent) and the United Kingdom (-3.2 per cent).
Source: STA

INO:

Dow drops 335 points, Nasdaq slides 1.8% as Facebook drags tech shares lower, Europe markets close lower as Micro Focus tanks 46%
U.S. stocks pulled back on Monday as a decline in Facebook pressured the technology sector. Wall Street also paid attention to Washington after a Twitter meltdown from President Donald Trump. Dow was down 1.35%, S&P500 lost 1.42%, while Nasdaq slumped 1.84%, affected by Facebook huge decline.
Facebook fell 6.7% after reports said political analytics firm Cambridge Analytica was able to collect data on 50 million people's profiles without their consent. Cambridge Analytica worked on Facebook ads with President Donald Trump's campaign in 2016.
The Federal Reserve is expected to raise interest rates on Wednesday with new Fed chief Jerome Powell giving his first press conference. Market expectations for a March rate hike were at 94.4 percent as of Monday morning, according to the CME Group's FedWatch tool.
European markets closed lower Monday afternoon as investors looked ahead to a trading week in which the Federal Reserve is likely to hike interest rates. The pan-European Stoxx 600 closed down just over 1 percent Monday afternoon, with major bourses and all sectors bar travel and leisure in negative territory.
Basic resources stocks led the drop, closing 2.6 percent down after tumbling during afternoon trade amid heightened fears of a trade war. The topic is likely to be top of the agenda at a two-day G-20 meeting starting in Argentina later on Monday, with any sign of escalating tension between Washington and Beijing likely to make investors in Asia increasingly nervous. BHP Billiton, Anglo American and Glencore all closed lower by around 4 percent.
Technology also closed well into the red. Stocks closed 2.6 percent lower amid news of a trading update for British tech firm Micro Focus. The company said its CEO had quit amid ongoing problems with its recent purchase of Hewlett Packard Enterprise assets. Micro Focus also slashed its annual revenue forecast for 2018, prompting shares to plummet by 46 percent at the market close.
Barclays shares closed up by 3.6 percent percent after Sherborne acquired the voting rights of 5.16 percent of the British bank's issued share capital.
The first estimate for euro area (EA19) exports of goods to the rest of the world in January 2018 was €178.6 billion, an increase of 9.1% compared with January 2017 (€163.7bn). Imports from the rest of the world stood at €175.4bn, a rise of 6.3% compared with January 2017 (€165.0bn). As a result, the euro area recorded a €3.3bn surplus in trade in goods with the rest of the world in January 2018, compared with a deficit of €1.4bn in January 2017. In addition, Chinese President Xi Jinping and German Chancellor Angela Merkel stressed the importance of close and multilateral cooperation in international trade on Saturday's telephone conversation, the Chancellor's office said.
Source: CNBC, Ilirka