market WRAP-UP
The indices moved in opposite directions on Wednesday as the volumes stayed quite low. Despite the low liquidity SOFIX reached 802.94 bps (+1.32%), BGTR 30 also closed positive at 532.22 bps (+0.74%), BG40 remained unchanged at 198.58 bps, while BGREIT lost 0.59% to 88.74 bps. The day gainer was Lead and Zink Complex (5OTZ, BGN 21.99, +9.10), followed by Toplivo (3TV, BGN 14.79, +6.40%) and Industrial Holding Bulgaria AD (4ID, BGN 5.379, +5.47%). Among the top losers of the session were Moststroy (5MY, BGN 12.5, -7.06%) and Sopharma (3JR, BGN 2.80,-4.31%). There were no volumes on the REIT market and the quiet trades kept price levels unchanged except for Elana Agricultural Land Opportunity Fund (4EC, BGN 1.55, +1.57%) where almost 880k shares changed hands.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 802.94 | 198.58 | 78.25 | 532.22 |
| 1-day change (%) | 1.32 | 0.00 | -0.29 | 0.74 |
| 7-day change (%) | -6.14 | -4.20 | -4.21 | -5.46 |
| 90-day change (%) | -27.44 | -32.88 | -17.76 | -29.10 |
| 365-day change (%) | -57.82 | -64.82 | -21.75 | -46.78 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 1 566 633 |
| BSE Daily Volume (BGN) | 4 882 002 |
| Avg Daily Turnover YTD (BGN) | 11 204 726 |
| Avg Daily Turnover 12 mo. (BGN) | 18 871 204 |
Most recent macro data
| Inflation (HICP, M/M August) | -0.1% |
| Inflation (HICP, cum. 2008) | 7.1% |
| LEONIA Reference Rate | 5.68% |
| SOFIBOR /3 months/ | 7.456 |
| GDP Growth (Y/Y Q2 2008 preliminary) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.38899 | 0.02156 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.4081 | -0.0222 |
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
Real estate
Chamber of Constructors expects growth in construction to continue
Over the last few years the construction business has been registering annual growth between 12% and 20% and the tendency will continue in the next five years, Ivan Boikov, executive director of the Chamber of Constructors in Bulgaria, said. The turnover of the building companies for 2007 was BGN 7bn. In future the main projects will be in infrastructure and logistics as Bulgaria has underdeveloped these areas.
Source: Pari
CORPORATE news
Petrol AD [5PET]
Fitch places Petrol rating under review on hefty buyback, loans
Fitch Ratings has placed Bulgaria-based fuel distributor Petrol AD's 'B-' (B minus) Issuer Default rating ("IDR") and 'B-' (B minus) senior unsecured rating for its EUR 100m notes due in 2011 on rating Watch Negative ("RWN"). The rating action is driven by concerns over a sizeable share repurchase undertaken by the company in Q2 2008, which was not in accordance with the planned use of proceeds from the asset disposal to Lukoil Bulgaria, and concerns that the management is not acting consistently with its strategy as laid out to Fitch earlier this year. The share repurchase of BGN 90.7m immediately benefits shareholders to the detriment of bondholders. Fitch regards this as a quasi-dividend payment, although the company says it is a temporary investment of disposal proceeds.The sizeable losses on derivative transactions in Q2 2008, as well as increased loans granted to related parties outside the Petrol AD group of BGN 20.3m, are an additional cause for concern and are also not in accordance with planned spending of disposal proceeds. The agency warned that unless Petrol delivered extra Information on these activities, its rating outlook may be downgraded to negative.
Fitch assesses Petrol AD's cash position of BGN 89.4m at end-June 2008 as sufficient to repay short-term debt, including the BGN 15m bonds maturing in November 2008. However, further cash spending and other shareholder-friendly action could lead to deterioration in the company's liquidity position. The change of the Outlook to Stable from Negative in July 2008 reflected Fitch's assumption that the lost volume and earnings from the Lukoil transaction would be substituted by acquisitions made on the Bulgarian market, as well as by investments in Petrol AD's network.
Source: Reuters
First Investment Bank [5F4]
FIB to roll over as much as half of EUR 185m syndicated loan
In an interview for the Dnevnik daily one of FIB’s CEO-s, Maya Georgieva, told that demand for loans is reduced sharply as customers are postponing plans for future expansion in light of the raising interest rates on loans and challenging environment. As a result of weakening demand FIB plans to roll over as much as half of the 1-year EUR 185 syndicated loan that was obtained in October last year.
Source: Dnevnik
Plovdiv-Yury Gagarin AD [4PX]
Plovdiv Yuri Gagarin BT with a new loan for EUR 1.5m
Plovdiv Yuri Gagarin BT has negotiated a loan with First Investment Bank for EUR 1.5m, announced the company to the BSE. The loan will be used for working capital needs as well as for the implementation of the investment programme of the company. The loan is for 3 years, base interest rate + 3.41%. Long term assets have been put as collateral for the loan.
Source: Investor.bg; FFBH
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BMU02-10-08.pdf, 75 Kb
