market wrap-up
The gains from the last 4 years have already been erased during the last 12 months. The last drop in SOFIX 605.59 (-7.46%) on Wednesday moved the index down to the levels from November 2004. Almost every stock was under heavy sell pressure and some of the names even registered double digit losses. The only gainer in the index was First Investment Bank (5F4) which advanced 1.67% to BGN 3.35 with over 722k traded, after the huge drops from the last several days made the levels attractive and provoked buying interest. Bulgarian American credit Bank (5BN) lost 24.14% down to BGN 22.00 after more than 159k changed hands in a single trade at BGN 23.00. The price weighted BG40 lost 5.65% to 155.93 bps and the equally weighted BGTR30 declined 5.15% to set the new bottom level at 414.45. Descent volumes changed hands in Chimimport (6C4, BGN 3.785, -8.24%), Eurohold Bulgaria (4EH, BGN 2.381, -11.78%) and Sopharma (3JR, BGN 2.20, -6.38%).
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 605.59 | 155.93 | 67.97 | 414.45 |
| 1-day change (%) | -7.46 | -5.65 | -1.18 | -5.15 |
| 7-day change (%) | -24.58 | -21.48 | -13.14 | -22.13 |
| 90-day change (%) | -45.29 | -45.54 | -26.79 | -43.20 |
| 365-day change (%) | -68.15 | -74.14 | -32.03 | -58.55 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 5 132 549 |
| BSE Daily Volume (BGN) | 17 430 121 |
| Avg Daily Turnover YTD (BGN) | 11 152 045 |
| Avg Daily Turnover 12 mo. (BGN) | 18 492 106 |
Most recent macro data
| Inflation (HICP, M/M August) | -0.1% |
| Inflation (HICP, cum. 2008) | 7.1% |
| LEONIA Reference Rate | 5.79% |
| SOFIBOR /3 months/ | 7.541% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.42439 | -0.01034 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3731 | 0.0099 |
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
Interbank loans grow 39% costlier
The price at which Bulgarian banks trade loans has soared by 39%YoY in the 12 months to October, the central bank said. LEONIA (LEv OverNight index Average) Reference Rate was 5.76% on October 7 compared to 4.14 in the same period last year. The index forms Bulgaria’s base interest rate, which was hiked to a record 5.38% for October.
In addition, the Sofia interbank offered rate, Sofibor, roseto 7.1% for a one-month period and to 7.5% for three-month deposits at noon on October 8.
The liquidity squeeze is intensifying over the crisis of confidence clogging the worldwide markets, financiers say. Lenders are shifting part of the growing cost of resource to loan borrowers and lending is tightening. Insecurity is driving banks away from large-scale projects as businesses are taking their time and revising projects, bankers say.
Source: Dnevnik
Energy sector
Sofia to boost stake in troubled heating utility by BGN 55m cash injection
The Sofia municipal council will raise its stake in the capital’s heating utility by pumping in up to BGN 55m to help pay out debt to gas supplier Bulgargaz. The move will strip the energy ministry of its blocking quota in Toplofikatsia Sofia, which clashes with mayor Boiko Borisov’s previous urge for the state to assume its debts and control.
Bulgargaz threatened turning the tap on Toplofikatsia unless it paid down its debts to the company estimated at some BGN 60m.
Source: Dnevnik
Transport Sector
New Bulgaria-Romania ferryboat line
New ferryboat line between Nikopol-Bulgaria and Turnu Magurele-Romania is ready and will be opened by the end of October. The total amount of the Bulgarian investment is EUR 6.2m. Two thirds of the money comes from the PHARE programme, the rest is from the state budget. Bulgarian River Shipping company was elected as main carrier on the route.
Source: Pari
CORPORATE news
Industrial Holding Bulgaria AD [4ID]
Industrial Holding Bulgaria auctions off bond rights 9 Oct
Blue-chip company Industrial Holding Bulgaria (IHB) will auctionoff all unsubscribed rights from its convertible bonds issue on 9 October. The company will offer 17 055 586 rights for which no convertible bonds have been subscribed. Orders will be accepted from 13:15h till 13:45h local time. The bonds are available for subscription by 24 October.
The holding company’s second convertible bond issuance is aimed at attracting some BGN 22m to invest in its future shipping business and in the extension and modernisation of Dockyard Port Bourgas.
The bonds carry an annual interest rate fixed at 8% with coupon payments due semi-annually, and mature three years after the issue date but have the option to be converted into shares at the end of the second year also. The conversion ratio is 12.
Source: Dnevnik; FFBH
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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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BMU09-10-08.pdf, 68 Kb
