market wrap-up
On Thursday despite the negative move of REIT companies which decresed BGREIT to 66.23 (-2.6%) all other indices finished the day positive: SOFIX 638.76 (+5.5%), BG40 164.29 (+5.4%) and BGTR30 433.28 (+4.5%). For SOFIX the only loser was Elana Agricultural Land Opportunity Fund (4EC, BGN 1.25, -1.6%) with over 928k traded. Support came mainly from Bulgarian American credit Bank (5BN, BGN 24.90, +13.2%), Sopharma (3JR, BGN 2.47, +12.3%), Monbat (5MB, BGN 6.60, +8.0%) and Eurohold Bulgaria (4EH, BGN 2.67, +12.1%). On REIT territory the main issues to pull down the index were Real Estate Fund Bulgaria (5BU, BGN 1.15, -9.9%), Advance Terrafund REIT (6A6, BGN 1.41, -6.0%) and Agricultural Land Opportunity Fund Mel Invest REIT (6A7, BGN 1.02, -6.4%).
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 638.76 | 164.29 | 66.23 | 433.28 |
| 1-day change (%) | 5.48 | 5.36 | -2.56 | 4.54 |
| 7-day change (%) | -18.26 | -14.81 | -13.95 | -17.04 |
| 90-day change (%) | -41.53 | -41.52 | -29.07 | -40.39 |
| 365-day change (%) | -66.69 | -73.06 | -33.77 | -56.67 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 20 387 836 |
| BSE Daily Volume (BGN) | 5 935 530 |
| Avg Daily Turnover YTD (BGN) | 11 125 294 |
| Avg Daily Turnover 12 mo. (BGN) | 18 330 463 |
| Inflation (HICP, M/M August) | -0.1% |
| Inflation (HICP, cum. 2008) | 7.1% |
| LEONIA Reference Rate | 5.80% |
| SOFIBOR /3 months/ | 7.551% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.42949 | 0.0051 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3682 | -0.0049 |
Sofix/ BG 40 / BGREIT / BGTR30 (charts)
DAILY TRADING (selected stocks)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Macroeconomic news and statistics
New vehicles sales up 18% YoY in 9mo 2008
In Jan-Sep 2008 44.5k new cars, trucks and buses have been sold in Bulgaria-18.3% YoY growth, Association of Car Manufacturers and Their Authorized Representatives in Bulgaria data showed. If data from non-members importers was added the vehicles sold would be above 45k.
Association members sold 41.1k passenger cars registered in 9mo 2008, 15.9YoY growth. market leader is Opel with 10.6% market shares, second is Toyota with 4k cars sold. In Jan-Sep 2008 3.3k new trucksand buses were sold which marks a 59% YoY increase. market leader is Mercedes with 33% market share.
Source: Investor.bg; FFBH
Macroeconomic news and statistics
Bulgaria Industrial Production index down by 13% MoM in August
The total industrial production in Bulgaria has gone down in themonth of August by 13.1% MoM, according to data published by the National Statistics Institute.
The most significant decreases were registered in the production of metals – 30.8% MoM, production of metal items, excluding machinery, equipment, and appliances – 18.5% MoM, production of chemical products – 15.8% MoM.
YoY drop in August 2008 was 6.2%. The production in the manufacturing sector has decreased by 6.3% YoY, the mining industry registers a 3.7% YoY decrease, while the production and the distribution of water, gas and electric power was down by 7.5% YoY.
Total industry revenues also showed significant reductions in August 2008 – 13.3% MoM. The manufacturing industry sales revenues has gone down by 14.9% MoM, the mining is down by 5.8% MoM, however, the sales revenues from the production and the distribution of water, gas and electric power were up by 1.4% MoM.
On annual basis August 2008 revenues were down 5.8% YoY.
Source: Novinite.com
Financial sector
Bulgaria may increase deposit protection
The Bulgarian government should urge Bulgarian National Bank to expand deposit insurance to EUR 50 000 from EUR 20 000 at present, prime minister Sergei Stanishev told a press conference on the global financial crisis. The current deposit guarantee covers over 90 percent of Bulgarians’ savings in local banks.
Stanishev pledged the state would come to the rescue of thebanking system should any real trouble arise. However, the prime minister warned Bulgaria may not stay clear from the worst economic crisis in 80 years as exports are about 30% of Bulgarian GDP. The prime minister noted the Cabinet had prepared a package of measures to contain the growth in the region of 5% next year and target a budget surplus of 3.5% of the GDP for 2008 and 2009.
Source: Dnevnik
Privatisation
Sofia Municipality stake in Municipal Bank may be sold at an auction
Sofia Municipality stake in Municipal bank should be privatized at a public auction, as all participants should be pre-approved by BNB, the municipal council has voted.
The council have also approved the privatization deal consultant report but the valuation of the bank was not announced. Sofia’s stake in the bank is 70.5%.
Municipal Bank has a registered capital of BGN 25m divided into 2.5 m shares of BGN 10 par value.
Source: Investor.bg; FFBH
Energy sector
Bulgaria may ask Gazprom to increase gas supply
Bulgaria will seek talks with Russian gas major Gazprom on adding an extra 500m cu. M. to the 3bn cu. M. it gets a year because of growing consumption, economy and energy minister Petar Dimitrov said.
Russian deputy prime minister Sergei Sobyanin denied recent reports by Russian newspaper Vedomosti of an extended deadline for the completion of the South Stream gas pipeline. Bulgarian Energy Holding (BEH) and Gazprom should sign the agreement by the end of the year and set up a joint company by next spring.
Russia also reiterated its commitment to give a state-guaranteed loan for the construction of Bulgaria’s Belene nuke plant in the eponymous town but Dimitrov declined it as a last-ditch solution. The project should be financially packaged by the end of next year.
Source: Dnevnik
Insurance
General insurance market premiums near BGN 1bn Jan-Aug
ulgarian general insurers collected BGN 953m in gross written premiums in the eight months through August, up 22% YoY, showed data of the Financial Supervision Commission. Payments stood at BGN 384m, 30% YoY.
Motor insurance generated almost half of the premiums and 60% of the payouts. Motor third party liability insurance accounted for 22% of gross written premiums and 26% of the payments. Bulstrad (16.7% market share), DZI (13%) and Allianz Bulgaria (12%) remained market leaders, while Euroins ranked 8th with 5.4%.
Life insurance market reported a 24% YoY growth in premium income to BGN 171m in January to August 2008. market leader is Allianz Bulgaria Life Insurance with 23% followed Uniqa Life and DZI with above 16%.
Source: Dnevnik
Insurance
Private health insurance premiums grows 10% YoY in Jan-Aug
Bulgaria’s private health insurance market reported a 10% YoY rise in premium income to BGN 21.2m in January-August 2008, showed data released by the Financial Supervision Commission. The number of Bulgarians with active contracts for voluntary supplementary health coverage was 338 760, according to the statistics.
Source: Dnevnik
CORPORATE news
Bulgarian Telecommunications company [5BT]
BTC to digitalize 58 new areas
Bulgaria’s dominant landline operator, the Bulgarian Telecommunications company, will digitalize another 58 areas in the northern region of Pleven by mid-December. The company will swap analogue for digital numbers from October 20 until December 9 and hand out free phones. The network upgrade will carry the operator’s full product range to the area.
Source: Dnevnik
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BMU10-10-08.pdf, 70 Kb
