market wrap-up
The negative trend continued on Tuesday as the trading session started in total panic as predominantly local retail investors were selling and pushing the prices heavily down. The top loser SOFIX lost 4.92% to 654.42 bps, BGTR30 reached 436.94 bps. (-4.08%), BG40 also closed negative at 165.26 bps (-3.63 %), while BGREIT lost 3.04% to 68.78bps. Among the top losers of the session were M+S Hydraulic (5MH, BGN 6.30, -16.00%), Bulgarian American credit Bank (5BN, BGN 29.00, - 11.50%), Industrial Capital Holding (4I8, BGN 3.80, -21.33%) and Moststroy (5MY, BGN 9.61, -14.95%). The day gainer was Kaolin (6K1, BGN 4.90, +6.06%) followed by Industrial Holding Bulgaria (4ID, BGN 4.92, +5.81). The most liquid company was First Investment Bank (5F4, BGN 3.29, +2.97%) where more than 548k shares change hands. On REIT territory the main issue to pull down the index was Agro Finance (6AG) BGN 1.09 which lost 15.96% with 268K shares turnover.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 654.42 | 165.26 | 68.78 | 436.94 |
| 1-day change (%) | -4.92 | -3.63 | -3.04 | -4.08 |
| 7-day change (%) | -17.42 | -16.78 | -12.36 | -17.30 |
| 90-day change (%) | -40.56 | -43.95 | -26.04 | -41.48 |
| 365-day change (%) | -66.33 | -73.34 | -31.22 | -56.31 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 4 616 144 |
| BSE Daily Volume (BGN) | 10 925 108 |
| Avg Daily Turnover YTD (BGN) | 11 119 516 |
| Avg Daily Turnover 12 mo. (BGN) | 18 496 371 |
Most recent macro data
| Inflation (HICP, M/M August) | -0.1% |
| Inflation (HICP, cum. 2008) | 7.1% |
| LEONIA Reference Rate | 5.76% |
| SOFIBOR /3 months/ | 7.519% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.43473 | 0.00021 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3632 | -0.0002 |
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
Financial sector
Leonia increases 0.5 pp MoM to 5.76%
Leonia rate which is used for the calculation of base interest rate in Bulgaria reached record levels of 5.76% on October 8 as compared to 5.25% on September 8, BNB data shows.
Main reason for the hike is increased demand in the interbank market seen in the significant BGN 278m turnover on Friday. The turnover on Tuesday was also above average levels and reached BGN 199m.
Source: Investor.bg; FFBH
Financial sector
BNB licenses six cash transfer firms
Bulgarian National Bank said it has issued permits to six companies allowing them to operate on the money transfer market. The list includes MoneyGram Payment Systems Bulgaria, Coinstar Money Transfer (Bulgaria), Master Envios Bulgaria, Bankservice, Change-Center Bulgaria and M Secured. The cash transfer firms were to apply for a licence with the central bank under domestic payments legislation.
Three of the applicants did not match the licence criteria and were turned away - XPRESSMONEY Services Limited of the UAE, Spain's Money exchange SA, and Russia’s Unistream Commercial Bank.
Western Union has told the central bank it would operate on the market via agents of Western Union International Bank, which is watched by the Austrian financial regulator.
The companies are required to have a registered capital of BGN 50 000 and present the regulator with their annual earnings reports plus data about the volume of transferred and received cash.
Source: Dnevnik
Pension funds
Pension funds 24-months average annual yield shrinks but remains positive
The Bulgarian pension funds reported positive average profitability for the 24-month period from Sep 29, 2006 – Sep 30, 2008 but it shrank from record-high level in end-Summer 2007. The average annual yield of the universal funds over the period was 2.36%, while professional pension funds reported 1.44%.
The Financial Supervision Commission set the minimum annual yield, which is calculated on monthly return, for the last 2-year period at negative 0.64% for universal pension funds and negative 1.56% for professional funds. Lukoil Garant was the only universal fund above the upper limit of 5.36% with 5.7%.
For the first half-year the insurance system in the country has been managing assets at BGN 2.39bn and insured 3.5m people.
Source: Dnevnik, FSC, FFBH
CORPORATE news
Investor.BG AD [4IN]
Investor.BG monthly sales growth reaches 107% YoY in September 2008
Investor.BG September 2008 sales reached BGN 242k, up 107% YoY. For comparison August 2008 sales were BGN 157k, up 85% YoY. The largest portion of sales came from advertising.
In 9mo 2008 sales growth reached 102% YoY and revenues stood at BGN 1.8m. The sales growth in Jan-Aug 2008 was 101% YoY.
Source: Investor.bg; FFBH
Pending listing
FairPlay Agricultural Fund approved to go public
Financial Supervision Commission (FSC) approved the public offering prospectus of FairPlay Agricultural Fund, a unit of Bulgarian property developer FairPlay International. The fund will offer to investors 4m new ordinary shares with par value of BGN 1 each and an issue price in the range BGN 1.9 to 2.7. About 90% of the company’s current registered capital is held by FairPlay International, a company active in purchase, lease and exploitation of farmland and other real estate.
Source: Dnevnik
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BMU08-10-08.pdf, 74 Kb
