The Economic Research Department performs macroeconomic analysis and investment research applied in explaining and short-term forecasts of trend sin the domestic financial system.

Under macroeconomic research, we analyize the key variables such as GDP, balance of payments, inflation, monetary aggregates, external debt, etc., while using quantitative methods and market conditions estimates, we make near-to-medium term forecasts. Having also followed trends on the world markets, we also forecast developments in monetary and fiscal policies as well as the subsequent implications for the local money market with an emphasis on the exchange rate and interest rates.

The aforementioned forecasts and estimates are the basis for forming our opinion on the broader spectrum of asset classes and the related price/value movements in the near-term, which enables our clients to make better-informed and more confident decisions and/or investment decisions.

Our own sector analysis and company-specific analysis make the all important initial basis for the quality analysis of the domestic capital markets. Our analysts especially put emphasis on

• significant stock market liquidity (and market capitalisation),
• the quality of corporate governance,
• broader significance for the society and
• interesting 'investment story'

when analyzing the key domestic listed companies and estimating their fundamentals (eg. future sales revenues, profitability and business development) on the basis of mosaic analysis.

Future business estimates are then summed into valuation models for the estimate of the present or future (fundamental) value of one equity instrument.

Our analysts forecasts developments on the domestic capital markets by using both fundamental and technical analysis.

In the view of today's dynamic financial markets, we will gladly respond to our clients' inqueries in the research fields that we feel comfortable with. Please send any requests, suggestions and comments by e-mail to: hypo.economic-research@hypo-alpe-adria.com