market WRAP-UP
For a third consecutive trading day all indices slightly moved down. For SOFIX (1024.5 bps, -0.28%), the top losers were M+S Hydraulic (5MH, BGN 6.45, -7.83%), and Toplivo (3TV, BGN 15.2, -2.57%), which didn’t meet investor expectations. The price-weighted BG40 lost 0.40% to 252.34 bps, after the drop in Stara Planina Hold (5SR, BGN 4.288, -3.64%) and Elhim Iskra (52E, BGN 4.275,-2.84%), which were traded at small volumes only but at a quite wide spread. BGTR30 declined 1.01% to 662.43 bps after the negative moves from Polimeri (51P, BGN 6.651, -6.29%), Odessos Shiprepair Yard (5ODE, BGN 235.00, -2.49%) and Petrol (5PET, BGN 9.3, -1.59%). The day gainer was Devin (6D3, BGN 3.96, +10%), followed by Holding Roads (6H2, BGN 17.5, +1.15%).
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 1 024.50 | 252.34 | 86.12 | 662.43 |
| 1-day change (%) | -0.28 | -0.40 | -0.39 | -1.01 |
| 7-day change (%) | -0.91 | -1.96 | -2.76 | -2.16 |
| 90-day change (%) | -18.17 | -27.59 | -10.36 | -21.61 |
| 365-day change (%) | -34.08 | -36.90 | -13.88 | -33.76 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 3 932 094 |
| BSE Daily Volume (BGN) | 3 311 754 |
| Avg Daily Turnover YTD (BGN) | 11 974 297 |
| Avg Daily Turnover 12 mo. (BGN) | 19 922 913 |
Most recent macro data
| Inflation (HICP, M/M July) | 1.4% |
| Inflation (HICP, cum. 2008) | 7.2% |
| LEONIA Reference Rate | 5.23% |
| SOFIBOR /3 months/ | 7.300% |
| GDP Growth (Y/Y Q2 2008 preliminary) | 6.3% |
| Unemployment (July 2008) | 5.96% |
exchange rates
| Current | Change | |
| BGN/USD | 1.32743 | -0.00515 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.4734 | 0.00569 |
DAILY TRADING (selected stocks) (table)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Macroeconomic news and statistics
Unemployment in July at 5.96%, almost the same as in June
The unemployment rate in Bulgaria was 5.96% in July compared to 5.97% in June, as announced by the Bulgarian Employment Agency. The total number of the unemployed individuals in Bulgaria is currently estimated at 220 879, 210 people less compared to the previous month (0.1%). Unemployment is down by 17.7% YoY (1.28 percentage points) or 47 567 people, compared to July 2007.
Source: Novinite.com
Financial sector
Mortgage loan rates continue to increase in July
The mortgage loan rates in Bulgaria continued the trend of going up and showed a sharper increase in the month of July showed the index Moite pari, which averages the annual percentage of charge on a 20-year, BGN 50k loan of 11 banks. None of the banks improved its credit offer in July compared to June. The rate for mortgage loans in BGN is at 9.3%, which is the closest to the one from the end of 2005. Nine banks have changed their BGN loan offers and have increased the mortgage loan interest rate on a MoM basis. Two have kept their prices at the same level as June. The same trend has been noticed for mortgages that are granted in EUR with eight banks increasing the loan interest rates and two banks without changes in their conditions for the EUR loans as well.
Source: Moitepari.com, FFBH
Telecommunication sector
Mobiltel H1 2008 customer base up 13.2% YoY
Mobiltel, the leading mobile operator in Bulgaria, increased its customer base by 13.2% YoY to 5.2m clients in H1 2008, announced Mtel’s parent company Telekom Austria in its H1 financial report. The company’s market share remained unchanged compared to Q2 2007 and stood at 50.5% in H1 2008.
Mobiltel’s revenues rose by 6.4% YoY to EUR 320m in H1 2008 driven by higher monthly rental and traffic revenues, which compensated for lower visitor roaming revenues. EBITDA grew by 8.8% YoY to EUR 188.6m.
The mobile penetration rate of Mtel rose from 117.4% to 133.8% in the first half of the year, said Telekom Austria.
Source: Dnevnik
Transport Sector
Traffic at Sofia airport up by 17% YoY in July
The number of passengers handled at Sofia airport in July 2008 grew by 17% YoY compared to July 2007. International charter flights also increased in July: 32% YoY for flights and 45% YoY for passengers. International airlines held 88% of total international charter flights. London was the top destination from Sofia airport with a record of 41 000 passengers, 50% up YoY, followed by Vienna and Frankfurt.
Source: Pari
CORPORATE news
Kremikovtzi AD [4KW]
Bulgarian government enters the creditors’ dispute
A government source told Dnevnik that the government would reclaim a state aid it granted to Kremikovtzi before going private eight years ago. The state aid in question refers to the forfeiting of some import duties that the plant owed to the State. The aid principal alone is estimated at over BGN 430m, and Economy Minister Petar Dimitrov said in July it totaled close to BGN 700m with interest accrued since 1999.
The government will submit its demand before 8th Sept, the deadline for all Kremikovtzi creditors to submit their claims to the court-appointed receiver after the steel maker was declared insolvent. The claims will then be examined in order to determine the proportionate votes that the creditors will be assigned for the September 24 creditor meeting.
If Kremikovtzi's outstanding payments to various state-owned service providers are factored in, the amount that the government could claim soars to over BGN 900m, ensuring that the government has the decisive vote as a creditor, claims Dnevnik.
The government said Kremikovtzi started this week the implementation of a tolling agreement with Vorskla Steel, a company controlled by Konstantin Zhevago, the Ukrainian billionaire interested in the steel maker. Under the agreement, gas supplies to the steel plant should be resumed this week so that monthly output could hit 60 000-70 000 tons. Production should reach 100 000 tons in another two months after an upgrade of the plant's converters. It is claimed that by joining the operative management of the plant, Zhevago's people now have the edge over rival bidder Arcelor Mittal.
Following the decision of the Sofia District Court that declared Kremikovtzi insolvent effective 31 December 2005, which renders the collateral of the EUR 325m bond issued in 2006 void, the bondholders filed an appeal, as expected. The bondholders threatened that if the court’s decision remains unchanged, that could lead to the reduction of foreign investments in Bulgaria.
Source: Dnevnik; FFBH
Doverie-Obedinen Holding AD [5DOV]
Doverie United Holding net income grows 8.1% YoY in H1 2008
Doverie United Holding booked consolidated revenues of BGN 95.9m in H1 2008 compared to BGN 80.2m in H2 2007. Operating expenses (including depreciation) increased by 16.6% YoY to BGN 90.1m from BGN 78.2m in H1 2007. Consolidated net income came at BGN 2.4m, up 8.1% YoY.
Source: Investor.bg; FFBH
Billboard AD [5BP]
Billboard’s new capital registered with Bulgarian Commercial Register
On August 19, 2008, the 1-for-1 stock dividend of Billboard was registered with the Bulgarian Commercial Register. At an AGM held on June 30, 2008, the company decided to double its capital from BGN 7.5m to BGN 15m by converting part of its reserves into shareholder capital.
Source: Billboard; FFBH
Odessos Shiprepair Yard AD [5ODE]
Odessos Ship Repair Yard to double dock capacity
Varna's Odessos Ship Repair Yard is building a new dock with double capacity, Dimitar Todorov, the CEO of the company, said. It is expected to be finished in Q1 2009. The total amount of the investment is expected to amount to USD 22m.
Source: Pari
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Copyright: 2006 First Financial Brokerage House. All rights reserved.For further Information please contact
FFBH, 2 Enos Str., 1408 Sofia, Bulgaria, Phone: +359 2 810 64 21, fax: +359 2 810 64 01, e-mail: ffbh@ffbh.bg, web site: http://www.ffbh.bg
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BMU21-08-08.pdf, 70 Kb
