market WRAP-UP
The indices made another step back on Friday. The sentiment didn’t seem to be improving after the release of the Q2 results and the low liquidity made it easy for the sellers to push the prices down. SOFIX lost 0.17% to 1012.57 after the negative moves from Kaolin (6K1, BGN 7.50, -6.24%), Industrial Holding Bulgaria (4ID, BGN 5.952, -4.54%) and M+S Hydraulics (5MH, BGN 10.93, -4.29%). The index received partial support from Holding Roads (6H2) which advanced 3.82% to BGN 16.30 with only 110 shares traded. The price weighted BG40 suffered more, as the huge drop in Odessos Shiprepair Yard (5ODE, BGN 222.223, -7.41%) led to a 1.31% decline in the index to 249.69 ps. BGTR30 registered a new all time low, hitting 663.25 (-0.33%) with the major changes coming from Albena (6AB, BGN 64.90, -3.13%) and Central Cooperative Bank (4CF, BGN 3.50, -2.78%).
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 1 012.57 | 249.69 | 89.49 | 663.25 |
| 1-day change (%) | -0.17 | -1.31 | 1.24 | -0.33 |
| 7-day change (%) | -1.52 | -7.70 | -0.01 | -3.37 |
| 90-day change (%) | -11.06 | -21.58 | -6.48 | -14.92 |
| 365-day change (%) | -37.12 | -36.92 | -10.51 | -33.67 |
| BSE Daily Volume (shares) | 501 106 |
| BSE Daily Volume (BGN) | 4 245 581 |
| Avg Daily Turnover YTD (BGN) | 12 609 076 |
| Avg Daily Turnover 12 mo. (BGN) | 34 054 642 |
Most recent macro data
| Inflation (HICP, M/M June) | 0.5% |
| Inflation (HICP, cum. 2008) | 5.7% |
| LEONIA Reference Rate | 5.21% |
| SOFIBOR /3 months/ | 7.295% |
| GDP Growth (Y/Y Q1 2008) | 7% |
| Unemployment (June 2008) | 5.97% |
exchange rates
| Current | Change | |
| BGN/USD | 1.25583 | 0.00298 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.5574 | -0.0037 |
DAILY TRADING (selected stocks) (table)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Financial sector
Most of Bulgarian banks support the switch to risk-weighted deposit insurance premiums
The proposed switch from proportionalto risk-weighted deposit insurance premiums payable to the Bulgarian Deposit Insurance Fund (DIF) has met the provisional approval of most of the local lenders, Dnevnik learned from a survey among the bankers. The proposal, due to be submitted for review by the Association of Bulgarian Banks, was drawn up by the DIF using both qualitative and quantitative criteria. The quantitative criteria are capital adequacy, return on capital, return on assets, efficiency coefficient, asset quality indicator and liquidity indicator. The qualitative criteria are the supervisory rating assigned by the Bulgarian National Bank and a grade assigned by an international rating agency.
At the moment, each bank remits to the DIF an annual premium equal to 0.5% of its deposit base for the preceding year, determined on an average daily basis.
Source: Dnevnik
CORPORATE news
Bulgartabac Holding AD [57B]
Bulgartabac’s [57B] consultants put forward three sale options for Blagoevgrad BT [55B] and Sofia BT [3JU]
The sell-side advisory team consulting Bulgartabac has submitted to the management for consideration three possible approaches for the privatization of Blagoevgrad BT [55B] and Sofia BT [3JU]. These propositions must also pass the approval of the principal, the Ministry of Economy and Energy. The options put forward are:
(1) Keep the current strategy, i.e. the companies are putup for sale separately: According to this option, the brands of the two companies, which are presently ownership of Bulgartabac Holding, should be transferred to Blagoevgrad BT and Sofia BT;
(2) Amend the current strategy: If this course is taken, the Holding will be privatized by the privatization Agency, a new consultancy team will have to be chosen all of which will further procrastinate the process, stated Mr Karolev of the advisory team;
(3) Blagoevgrad BT and Sofia BT are sold together ‘in package’ through theBulgarian Stock exchange (BSE): this, according to Mr Karolev, is the best suited option. The Holding’s advisors have proposed that financial as well as strategic investors be allowed to participate. If the acting strategy is to be revised, it should pass the approval of the Council of Ministers and then the Parliament, which most likely won’t be anytime before September.
In the meantime, the consultants are expecting to receive within the coming days all the Information from the Holding necessary for the preparation of Information memorandums for Blagoevgrad BT and Sofia BT, added Mr Karolev. Once they receive this Information, the advisors will have 45 days to deliver the documents.
Source: Dnevnik; FFBH
BillboardAD [5BP]
The company announces new investment project in Varna and its investment program until the end of 2008
The management Board of Billboard approved an investment programmethat envisages a total of EUR 11.6m of investments in its current business for 2008 (away from the new printing base project in Kostinbrod). EUR 3.7m of them should be covered by own funds.
Since the beginning of the year Billboard has invested EUR 2.2m in the wide format digital business, of which EUR 0.4m own funds. The new equipment is expected to be put into exploitation by the end of this month.
Going forward, the company’s 2008 investment program envisages the expansion of its business in Varna, where it is in the process of creating a new printing base combining both wide format business (through the 100%-owned subsidiary Digital Print) and offset printing activity (through the sq.m. production area and 336 sq.m. trade area. The chosen venue is the business center “Bee Garden” in Varna, and the preliminary agreement for the purchase of the premises expected to be signed over the next days. The cost for the premises and the installation is estimated to reach EUR 5.2m. Additionally the company plans to invest EUR 1.1m (entirely own funds) for wide format equipment and EUR 3.1m for offset equipment (of which EUR 0.4m own funds). The wide format segment is expected to become operational by the end of August 2008, while the offset printing operations are projected to start in the end of 2008.
Billboard said that for the purpose of the new printing base in Varna, it will extend a BGN 5m loan to its subsidiary Digital Print, bearing an interest of the official base interest rate (BIR) + 3% and a maturity in December 31, 2009.
Source: Billboard; FFBH
Sopharma AD [3JR]
Sopharma’s sales in July up 35% YoY
Sopharma’s revenues in July grew by 35% YoY. Local sales increased by 34% YoY, while exports
rose by 36% compared to July 2007.
Source: Investor.bg; FFBH
Devin[6D3]
Devin’s H1 revenues up YoY, net profit down
The net unconsolidated revenues of Devin rose by 9% YoY in H1 2008 to BGN 28.8m, while the company’s net unconsolidated profit dropped to BGN 0.6m, down 58% YoY.
On consolidated basis, H1 revenues reached BGN 30.9m, up 17% YoY. The consolidated net profit is also down YoY – it stood at BGN 3k in H1 2008, compared to BGN 855k in H1 2007.
Source: Investor.bg; FFBH
Medica AD [5MA]
Medica consolidated sales and profit up YoY in H1
The net sales of Medica went up 20% YoY to BGN 7.9m in H1 2008, the company's consolidated report showed. Revenues from product sales rose to BGN 7.4m in the first half of 2008 compared with BGN 6m in the year-ago period. The company's net profit is up 61% YoY to slightly above BGN 1m. Net profit margin improved from 10% in H1 2007 to 14% in H1 2008.
Source: Pari
EMKA AD [57E]
New line for cables production already operational
In July Emka put into exploitation the new line for cables production delivered four months earlier in March. This is in line with the company’s investment programme and the provisions of the contracts for purchase of production equipment signed by Emka.
Source: x3news; FFBH
Todoroff AD-Sofia [5T6]
Todoroff plans to pay off its investment loans by selling a loss-making hotel
Todoroff, the Bulgarian wine maker, plans to pay off its investment loans with the proceeds from the sale of its loss-making hotel in the village of Brestovitsa, in the Plovdiv region. The sale of the hotel property will be voted on at an upcoming general meeting of shareholders. The hotel is expected to be sold for BGN 3.1m without taxes to Poliart, a company co-owned by Todoroff.
Source: Dnevnik
PRC REIT [PRQ]
PRC REIT plans to raise BGN 5.2m on BSE
PRC REIT plans to raise its capital from BGN 65k to BGN 5.85m, BSE announced. The fund will offer 65k rights, each of which entitling to the subscription of 8 new shares. The number of new shares the company will offer to investors is 520k. The stock's par and issue price have been set at BGN 10 each.
Rights will be traded on BSE in the period 11-26 August under the stock symbol PRQA. The final date for trade on the position, as a result of which the holder will be entitled to participation in the capital increase is August 6.
Source: Profit.bg
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BMU04-08-08.pdf, 72 Kb
