Investors dislike uncertainty, especially when it concerns major economies such as the USA and China.
The first three months of 2025 were very dynamic for the Zagreb Stock Exchange, says Ms. Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange, for Diplomacy&Commerce. Stock trading volume was 38.4% higher compared to the previous quarter, while total trading volume increased by +20.5%.
- The previous period has been very intense on stock exchanges worldwide. How do you comment on the changes and everything that has been happening as a consequence of the tariffs introduced by U.S. President Donald Trump? Has the situation on the stock exchanges stabilized, or do you expect further declines and major changes?
Global markets have indeed gone through a turbulent period. Political and economic decisions by world leaders are something that markets always react to. Although some markets have shown signs of recovery, we still cannot say that the situation is fully stable — volatility is likely to remain present. In the long term, markets adjust to new conditions, but short-term fluctuations are inevitable. At the time of the announcement of U.S. political and economic decisions and the resulting corrections on global markets, indices of the Zagreb Stock Exchange were also significantly corrected, ending a very long and successful growth streak during which our market indices had even outperformed leading global indices last year. However, the market quickly recovered because there was no reason for a prolonged downward trend, given the good company results and solid fundamentals.
- How was trading on the Zagreb Stock Exchange over the past three months, and what would you highlight as most important?
The first three months of 2025 were very dynamic for the Zagreb Stock Exchange. Stock trading volume was 38.4% higher compared to the previous quarter, while total trading volume increased by 20.5%. The market capitalization of stocks and bonds saw a slight increase of 2.5%, while ETF market capitalization grew by an impressive 65.6% compared to the previous quarter. If we make comparison with Q1 of 2024, the results are even better: total turnover increased by as much as 48%, stock market capitalization rose by 19%, and ETFs by an outstanding 265%. In Q1 2025, I would especially highlight the successful listing of shares of ING-GRAD, a company that, following its IPO, attracted great interest among investors. Its listing on the Official Market, alongside a significant number of new small shareholders, shows that the Croatian capital market has the potential to attract both companies and investors, which is certainly encouraging.
- How can stock market trading, index declines, and everything that is normal for stock exchanges serve as indicators of the direction in which the global economy is headed, and what can we conclude from these recent developments? Stock exchanges have been the top news in the media after a long time.
Stock exchanges are certainly a good indicator of market sentiment and investor expectations. They react quickly, often anticipating future economic trends. Index declines, especially if they are broad and prolonged, can signal an economic slowdown, while growth indicates optimism. However, it is important to distinguish between short-term fluctuations and long-term trends. The recent events, where stock markets were in the spotlight, are just a reminder of how important financial markets are in the global economy.
- Our readers are business people, company owners, and managers. For those who are not familiar, how does one trade on the stock exchange?
Trading on the stock exchange is more accessible today than ever before. It’s necessary to open an account with an authorized broker, which is now possible online, and you can start investing in the stock market. However, anyone considering investment must first inform themselves, educate themselves, and define their strategy: how much they want to invest, what level of risk they are willing to accept, and for what period they are investing. It is advisable to consult with investment advisors beforehand, and the educational programs of our Zagreb Stock Exchange Academy can be an excellent first step in gaining investment knowledge. So far, we have educated more than 12,000 individuals, from students and high schoolers to small investors and financial professionals.
- ZSE Academyis the educational division of the Zagreb Stock Exchange. Today, the Academy is the largest provider of financial market education services in Croatia. What are your plans for the upcoming period in this regard?
Our Academy continuously develops new programs — both for beginners and professionals. So far, we have developed over one hundred programs in the duration ranging from one to five days. We cover various topics from the world of investment and finance, from personal finance management to highly specialized education. In recent years, we have focused on online education formats to provide access to knowledge for those who are not based in Zagreb or do not have time for traditional lectures, and we are expanding our collaboration with business schools and universities. Systematic education is needed in schools, colleges, and through other channels, and we strive to play an important role in this. Knowledge is the best investment, and it is the cornerstone of our educational mission.
- Corporate social responsibility is also an important segment of your activity. “Ring for Gender Equality” is one of the actions you have had since the beginning of the year. Do you have any further plans in this regard, and how important is this to you as a woman at the head of such an institution?
“Ring for Gender Equality” is a global initiative that we have proudly supported for years, aiming to emphasize the importance of empowering women to take leadership roles in the business world, sending a strong message about the importance of equal opportunities. As an institution, we want to be a role model in promoting inclusion, transparency, and social responsibility, and as a woman in a leadership position, I feel an additional responsibility to promote equality and inclusivity through my example and actions. Further initiatives promoting diversity and sustainability are planned, such as through education and partnerships with organizations that share the same values. We do not see social responsibility as something that just needs to be “done,” but as the way we want to do business — encouraging changes that will leave a positive mark both in the business community and in society as a whole.