market wrap-up
The negative trend continued on Thursday. The indices made another step back as the sellers prevailed again. SOFIX declined 2.05% to 966.02 bps pushed down mainly by Holding Roads (6H2, BGN 15.2, -5.00%), Chimimport (6C4, BGN 7.459, -4.49%), Bulgarian-American credit Bank (5BN, BGN 54, -3.23%), and Lead and Zink Complex (OTZK, BGN 24.7, - 3.14%). The price weighted BG40 lost (-1.96%), closing at 236.03 after the sharp drop in Chugunoleene (59C, BGN 16.184, - 10.04%) and Bulgarian River Shipping (5BR, BGN 3.81, -4.73%). BGTR30 also declined, reaching 636.66 (-1.29%) with the major moves coming from Evrohold Bulgaria (4EH, BGN 4.35, -5.23%), Fazerles (4F6, BGN 120.3, -4.52%) and Petrol (PET, BGN 9.00, -5.26%). The most liquid company for a third consecutive day was First Investment Bank (5F4, BGN 6.03, + 1.34%) where more than 83k shares change hands.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 966.02 | 236.03 | 84.45 | 636.66 |
| 1-day change (%) | -2.05 | -1.96 | -0.55 | -1.29 |
| 7-day change (%) | -2.35 | -1.37 | -1.57 | -1.48 |
| 90-day change (%) | -19.11 | -27.58 | -9.94 | -20.88 |
| 365-day change (%) | -40.96 | -43.09 | -15.55 | -36.33 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 772 335 |
| BSE Daily Volume (BGN) | 2 980 692 |
| Avg Daily Turnover YTD (BGN) | 11 597 785 |
| Avg Daily Turnover 12 mo. (BGN) | 19 477 838 |
Most recent macro data
| Inflation (HICP, M/M July) | 1.4% |
| Inflation (HICP, cum. 2008) | 7.2% |
| LEONIA Reference Rate | 5.24% |
| SOFIBOR /3 months/ | 7.267% |
| GDP Growth (Y/Y Q2 2008 preliminary) | 6.3% |
| Unemployment (July 2008) | 5.96% |
exchange rates
| Current | Change | |
| BGN/USD | 1.40364 | 0.01594 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3934 | -0.01601 |
DAILY TRADING (selected stocks)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Financial sector
Finance and insurance deals among the most active on the M&A market
The finance and insurance sectors ranked second on the Bulgaria’s M&A market in terms of numbers of deals in the first half of the year, closely on the heels of the production sector, showed a survey of DealWatch, Information product of ISI Emerging Markets, Euromoney Group.
A total of 64 mergers and acquisition deals worth a combined $2.6bn were closed in H1 2008, from which 10 deals happened in the finance and insurance sector. Sixty deals worth $3.0bn were closed in the same period last year.
Acquisitions accounted for 42 of all M&A deals. There were sixteen acquisitions of minority stakes, 4 privatization deals, one merger and one restructuring.
Foreign investors accounted for 35 of the transactions. Greek companies topped the rankings, signing 9 deals, followed by the UK, Germany, Switzerland, Austria and the US with 4 each. Bulgarian companies completed 6 deals abroad, half of them in Serbia. Source: Dnevnik
Macroeconomic news and statistics
Cigarette prices to rise in 2009
Prices of cigarettes in Bulgaria may rise between 25% and 30% in the beginning of 2009, the general manager of British American Tobacco forecast. This will be due to the commitment of the country to reach the minimal tobacco excise duty required within the EU. The process of increasing the excise duties started in 2008 and will have to be completed by 2010. Tobacco excise duty is forecast to reach EUR 54 per 1000 cigarettes in 2009 and EUR 65 in 2010.
Bulgartabac Holding, the dominant local producer, said it willdeliver an excise rate proposal that will be submitted to the Ministry of Finance within 20 days.
Source: Pari
Macroeconomic news and statistics
New motor vehicles sold reached 40k for the first eight months of the year
A total of 39 926 new motor vehicles were sold in the January-August period of this year, up18% YoY, according to data annouced by the Association of Automobile Producers and Authorized Representatives in Bulgaria. The data registers just sales by the association’s member companies. The number of passenger cars sold during the period was 37k (up 16% YoY) and the number of trucks sold was 2 923 (up 62% YoY).
Source: Investor.bg; FFBH
CORPORATE news
Advance Terrafund ADSIC [6A6]
Advance Terrafund REIT with a land portfolio worth BGN 103m as of end August
As of end August 2008 Advance Terrafund owns land worth a total of BGN 103m. The company’s land portfolio consists of 75% agricultural land and 25% urban plots. The company invests primarily in arable land – 99% of the plots in the portfolio belong to land categories 1 – 6 (on a scale of 1 – 10, where 1 is the most fertile). At the end of August 2008 Advance Terrafund controlled a total of 25 000 hectares of agricultural land. The average acquisition price in August stood at BGN 3 670 per hectare and the average price for the whole portfolio was BGN 2 340 per hectare (adjusted for all acquisition costs).
Source: Investor; FFBH
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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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BMU12-09-08.pdf, 68 Kb
