market WRAP-UP
The indices moved in opposite directions on Wednesday as the volumes stayed quite low and no aggressive buyers or sellers were present. SOFIX advanced by 1 033.94 bps (+0.24%), wide BG40 slightly moved down to 257.38 bps (-0.61%), BGTR30 closed at 677.03 bps (-0.10%) while BG REIT added 0.36% to 88.56 bps. First Investment Bank 5F4, BGN 5.93, 0.17%)suffered small sell pressure that day but 41k shares found buyers and the price did not change a lot as the issue closed at BGN 5.93, 0.17%. The REIT market remained quiet as the poor liquidity supported prices from the previous day except for Real Estate Fund Bulgaria 5BU which increased to BGN 1.70, (+2.70%) with 32k shares traded.
Sofix/BG 40 (chart)
BGREIT/BGTR30 (chart)
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 1 033.94 | 257.38 | 88.56 | 677.03 |
| 1-day change (%) | 0.24 | -0.61 | 0.36 | -0.10 |
| 7-day change (%) | 2.78 | 2.41 | -0.21 | 2.57 |
| 90-day change (%) | -13.76 | -22.23 | -6.31 | -15.53 |
| 365-day change (%) | -34.00 | -34.22 | -11.44 | -32.30 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 800 292 |
| BSE Daily Volume (BGN) | 5 078 823 |
| Avg Daily Turnover YTD (BGN) | 12 187 958 |
| Avg Daily Turnover 12 mo. (BGN) | 31 218 946 |
Most recent macro data
| Inflation (HICP, M/M June) | 1.4% |
| Inflation (HICP, cum. 2008) | 7.2% |
| LEONIA Reference Rate | 5.21% |
| SOFIBOR /3 months/ | 7.300% |
| GDP Growth (Y/Y Q2 2008 prelim) | 6.3% |
| Unemployment (June 2008) | 5.97% |
exchange rates
| Current | Change | |
| BGN/USD | 1.31237 | 0.00035 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.4903 | -0.0004 |
DAILY TRADING (selected stocks) (table)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Real estate
investments in the local real estate market reach EUR 745m for H1 2008
investments in the Bulgarian real estate market recorded a strong first half of the year reaching EUR 745m, which is approximately 85% of all investments in the sector for the whole 2007 according to CD Richard Ellis, a consultancy. More than half of the funds (52%) came from Bulgarian investors. Richard Ellis expects the construction of office and retail space to remain robust and these to be the main areas which would attract investments.
Source: Investor.bg, FFBH
Infrastructure
Bulgarian companies Trace Group and Holding Roads viable candidates for Trakia motorway section
Trace Group Hold and Holding Roads are the only Bulgarian contractors in position to meet the tough qualification criteria for the selection of a builder to finish the Nova Zagora-Yambol stretch of the Trakia motorway, was prompted by Ivan Boikov, executive director of the chamber of building contractors. Boikov did not rule out the possibility that the contract may be contested by a consortium of Bulgarian companies. The bid deadline is October 2.
The applying candidates should have built, rehabilitated or reconstructed at least one road or airport runway facility at a cost of over BGN 30m. They are also required to certify at least BGN 200m in construction and assembly works over the last three years.
The government recently decided to use BGN 100m from the budget surplus for the construction of the Trakia motorway.
Source: Dnevnik
CORPORATE news
Sopharma AD [3JR]
Sopharma increased its stake in the Ukrainian OAO Vitamini
Sopharma increased its stake in the Ukrainan OAO Vitamini by 5% to 79.1% according to a company statement to the Bulgarian Stock exchange. No Information about the price of the deal is provided currently.
Source: Dnevnik
Orgachim AD [5ORG]
The ownership structure of Orgahim would remain unchanged in the next couple of years
The two investment funds, Reconstruction capital II Limited and Romanina Investment Fund (RIF) which indirectly own the majority stake in Orgahim would keep their stakes in the company unchanged for the next two years according to Ion Floresku, manager of the funds for Romania. Furthermore, Mr. Floresku has stated that the company expects to have a new CEO to replace Mr. Ivan Sokolov, who resigned at the end of July, in the fall.
Source: Dnevnik
Holding Roads AD [6H2]
Mostroy and Holding Roads register their new capital with Bulgarian Commercial Register
Mostroy and Holding Roads registered their capital increases with Bulgarian Commercial Register according to a statement published on www.investor.bg. Holding Roads increased its registered capital with own funds (stock dividend) from BGN 432k to BGN 30.7m. Mostroy used own funds (stock dividend) to increase its registered capital as well from BGN 1.1m to BGN 5.6m.
Source: Investor.bg, FFBH
Chimimport AD [6C4]
Varna, Burgas airport passenger traffic down in July
Germany's Fraport said passengers numbers at the Burgas airport fell 0.2% to 56k in July while the Varna airport recorded a 10% MoM decline to 320k. In 2006, the German company won a 35-year contract to operate the two airports in partnership with Bulgaria's BM Star. Earlier this year, the Bulgarian company was acquired by business conglomerate Chimimport.
Source: Dnevnik
Billboard AD [5BP]
Billboard moves ahead with investment plans for its Varna base
In the beginning of the month Billboard announced its 2008 investment program, which envisaged the creation of a new printing base in Varna, combining both wide format business (through the 100%-owned subsidiary Digital Print) and offset printing activity (through the 60%-owned subsidiary Dedrax). For the purpose, the company was negotiating the purchase of premises in the business center “Bee Garden” in Varna with a total area of 5 466 sq.m. The investments in the new printing base (premises and equipment) were expected to reach EUR 9.4m.
The company announced that on August 12, 2008, Digital Print has signed a final agreement for the purchase of the said real estate for the total amount of EUR 4.9m. Part of this cost (EUR 1.5m) was paid from the EUR 2.6m intra-group loan extended by Billboard to Digital Print for covering costs related to the Varna project. The rest was financed through a 10-year investment loan of EUR 3.4m agreed with Societe Generale Expressbank.
Earlier in the month Billboard estimated that the cost of premises and the completion works needed would reach EUR 5.2m.
Digital Print has also signed a working capital loan agreement with Societe Generale Expressbank for the amount of EUR 1.2m, having a 9-month term of repayment. Both loans have been secured by a mortgage on the real estates in the business center “Bee Garden” in Varna.
Source: Billboard, FFBH
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BMU14-08-08.pdf, 69 Kb
