If months ago local players were carefree thinking that the global fluctuations on the financial markets did not have an impact here, in the last couple of weeks we saw exactly the opposite mood. Regardless of the low liquidity of the Bulgarian exchange, our country joined the global decrease trend.
We saw a certain foreign investor retreat resulting from the disturbed macroeconomic indications in the country and panic-stricken redemption of shares from funds of nonprofessional investors in the country. As a whole, there are no actual circumstances on the Bulgarian market influencing the price of companies but this is more of a result from the considerable stagnation on the global exchanges.
The expectations for a strong January did not come true, on the contrary – this is turning into the month of the worst performance of indices since their initiation. During the past month, SOFIX registered positive final results only twice – on January 17 with +1,19% and on January 25 with + 6,19%. The past week was one of the worst for the index when it lost value to drop down to 1321,03 points.
With BG 40 the situation is not much different – three days of increase the strongest one of which was on January 25 with +8,02% and on January 4 and 17 with about 1% increase. The decrease was considerable – under 400 points in the last week to even reach 392,09 points on Thursday.
The equally weighted BGTR30 lost some of its positions as well and went on with a negative trend after Thursday when it dropped down to 864,7 points.
The smallest fluctuationsin the last couple of weeks were those of the special-purpose vehicle index – BGREIT. Fluctuations were usually of about 1% with the exception of January 9 – 2,29% and January 16 – 3,66%.
Data about the trade on the Bulgarian Stock exchange for the period 21.01.2008 − 25.01.2008
| market segment | Volume | Value (BGN) |
| Unofficial share market Segment A | 7 137 364 | 53 533 761.15 |
| Unofficial share market Segment B | 82 367 | 395 596.81 |
| Unofficial market, Other Securities | 439 392 | 771 246.04 |
| Unofficial Bonds market | 3 427 | 4 983 755.28 |
| Official share market Segment A | 387 518 | 2 997 942.72 |
| Official share market Segment B | 2 644 133 | 30 243 679.07 |
| Official Corporate Bonds market | 50 | 52 370.20 |
| Compensatory market | 504 388 | 209 280.36 |
| Other | 0 | 0.00 |
| TOTAL | 11 198 639 | 93 187 631.63 |
| Previous week | Current week | |||
| 18.1.2008 | 25.1.2008 | Changes | % | |
| SOFIX | 1490.09 | 1402.76 | -87.33 | -5.86 |
| BG40 | 435.68 | 423.55 | -12.13 | -2.78 |
| BG TR30 | 957.82 | 909.65 | -48.17 | -5.03 |
| BG REIT | 100.37 | 99.4 | -0.97 | -0.97 |
Changes in the indices on the Bulgarian Stock exchange for the reviewed period
SOFIX 21-25.01.2008
| Date | Value | Changes (%) | Turnover |
| 25.1.2008 | 1402.76 | 6.19% | 4116731.69 |
| 24.1.2008 | 1321.03 | -4.36% | 7326908.89 |
| 23.1.2008 | 1381.29 | -0.22% | 5627834.85 |
| 22.1.2008 | 1384.29 | -0.55% | 8417352.58 |
| 21.1.2008 | 1391.92 | -6.59% | 5249280.47 |
BG40 21-25.01.2008
| Date | Value | Changes | Turnover |
| 25.1.2008 | 423.55 | 8.02% | 4101617.72 |
| 24.1.2008 | 392.09 | -1.82% | 6707447.62 |
| 23.1.2008 | 399.37 | 1.02% | 5545794.21 |
| 22.1.2008 | 395.32 | -0.93% | 7403617.24 |
| 21.1.2008 | 399.02 | -8.41% | 6557413.78 |
BG TR30 21-25.01.2008
| Date | Value | Changes |
| 25.1.08 | 909.65 | 5.20% |
| 24.1.08 | 864.7 | -1.47% |
| 22.1.08 | 877.56 | -1.34% |
| 21.1.08 | 889.5 | -7.13% |
| 18.1.08 | 957.82 | 0.42% |
| Date | Value | Changes |
| 25.1.08 | 99.4 | 0.65% |
| 24.1.08 | 98.76 | 0.16% |
| 23.1.08 | 98.6 | 1.13% |
| 22.1.08 | 97.5 | -1.16% |
| 21.1.08 | 98.64 | -1.72% |
SOFIX (chart)
BG40 (chart)
BG TR30 (chart)
BG REIT (chart)
Winners (table)
Losers (table)
At the close of business on Friday there was certain growth on the BSE indices – SOFIX + 6.19%, BG40 + 8,02%, BGTR 30 + 5,20% and BGREIT +0,65%.
The most liquid position was that of Chimimport AD, Sofia /CHIM/ with 1552 transactions, turnover of over BGN 6 million and price drop in terms of securities of 12%. This week it was announced that Chimimport AD had acquired 9,17% of the capital of Industrial Holding Bulgaria.
Some of the securities with poor performance include those of Alcomet AD – Shumen /ALUM/ with a 15,85% decrease for the week followed by Insurance company Euro Ins – Sofia /EURINS/ - 14,95% and CB Bulgarian-American credit Bank AD – Sofia /BACB/ - 12,31%.
At the close of business this week, positive results were registered by Petrol AD – Sofia /PET/ + 10%, with 309 transactions and turnover of close to BGN 3 million as well as by Fazerles AD – Silistra /FZLES/ + 3,40%.
As to the special-purpose vehicles, Bulgarian Real Estate Fund REIT-Sofia /BREF/ added 2,15% to its value while at the opposite end stood Bulland investments REIT – Sofia /LAND/ with a decrease of 3,20% after the close of business on Friday.
The trade with securities of Enemona was one of the major events in the past week. In the first day of its trade on the exchange its shares gained more than 5 %. The company successfully closed its ipo in November and registered oversubscription of more than 30 times. At the end of last year the Bulgarian Investment Agency granted a first-class investment certificate for the Lom Lignite Energy Project. The project provides for the creation of an energy center around the Danube in the vicinity of Lom using the geographical and infrastructural potential of the area.
The Financial Supervision Commission approved the prospectus of Sparky AD – Ruse allowing the shares of the company to be traded. The issue amounts to BGN 3 000 000 allocated into 3 000 000 shares, each with par value of BGN 1.
The company produces processed and welded metal structures for lifting and road construction installations, agricultural machines and motor trucks. The company is part of the Sparky Group AD which owns the majority of shares of Sparky Eltos AD /ELTOS/.
Collective investment schemes – yield as at 25.01.2008 г. (table)
Capman Financial Group – Corporate news
N. Yalamov: The current price dropis more aggressive but the trend will be reversed
The reason for the progress is the positive development of the market in the past year, the good results of companies traded on the Bulgarian Stock exchange and the new companies making their first steps on the exchange. These were Nikolay Yalamov’s words in his capacity of the Board of Directors of Capman financial group for DarikFinance.bg. New companies have additionally encouraged investor interest, says Yalamov. All of this predetermined the rather considerable growth of mutual fund assets.
The financial mutual schemes managed by Capman Asset management registered good results in 2007. The high-risk Capman Max fund had yield of over 100% and the balanced Capman Capital fund – close to 80% yield, he added.
Yalamov expects that the investment schemes managed by the Capman fund group will realize good yield since the market has the potential to grow and because Bulgarian companies and the basis show excellent results. Furthermore, large investments are expected from structural funds and foreign companies.
Regardless of the fact that the current price drop is more aggressive than what we are used to, this trend will be reversed, he thinks. The correction of the market is healthy and the market will go up once more even if not so fast.
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Copyright: 2007 Capman AD. All rights reserved. For further Information please contact Capman, 8 Tri Ushi Str., Fl. 6, 1301 Sofia, Bulgaria
Tel. ++359 2 810 60, fax: +359 2 810 60 33, e-mail: mail@capmanbg.com, web site: http://www.capmanbg.com
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Capman Weekly 21-25.01.2008.pdf, 251 Kb
