1A. Bucharest Stock exchange Indicators
Bucharest Stock exchange Indicators (table)
BET and Turnover (YOY) (chart)
BET-C, BET-FI and ROTX (YOY) (chart)
1B. market Comment
During this week, BSE indices posted significant losses, reaching minimum levels of the last two years. The BSE indices altogether managed to close positively only on Friday’s trading session. BET-FI posted the largest loss on the week among the indices, on Tuesday BET-FI dropped 3.75%, while on Thursday lost another 2.59%. On Wednesday, BET-FI recorded an un-significant gain of 0.01%. SIF Oltenia (SIF5) posted the largest weekly loss among the five SIFs, namely 12.7%, while SIF Transilvania (SIF3) recorded the smallest one, namely 2.78%. BRD-GSG (BRD) lost 6.11% as compared to last Friday, up to RON 16.9, on the back of a significant turnover. BRD shares generated 19.59% of the Regular market daily turnover recorded on Thursday. The only deal closed this week on BSE, was the one with BRD shares on Monday. Thus, 50,000 BRD shares were transferred, amounting to RON 0.9 Mn, for a price of RON 18 per share, 0.56% lower than the average prices recorded on the Regular market on the day.
1C. ‘Watch List’ Evolution
Watch List’ Evolution (table)
BET-C and Turnover (chart)
Winners/Losers (%) (chart)
Most Traded (%) (chart)
market Trend. BSE indices continued to post weekly losses for the second consecutive week. BET-FI recorded the highest weekly decline, namely 6.64%, followed by BET with a loss of 3.81% and by BET-C which decreased by 3.49% as compared to last Friday trading session.
Liquidity. The weekly transaction value went down 11.2% as compared to last week, reaching RON 106.21 Mn (EUR 30.11 Mn). On the Regular market, the most traded issuers of the week were SIF Oltenia (SIF5) worth RON 17.12 Mn, BRD-GSG (BRD) worth RON 15.21 Mn, SIF Banat Crisana (SIF1) worth RON 11.7 Mn, SIF Transilvania (SIF3) worth RON 7.96 Mn.
2. Rasdaq market Indicators
Rasdaq market Indicators (table)
RAQ-C and Turnover (YOY) (chart)
Most Traded (%) (chart)
The indices of the Rasdaq market posted a volatile evolution during the week, only RAQ–I recording a slight increase of 0.3% as compared to the loss of 5.40% recorded one week before. RAQ – II lost 2.6%, while RAQ –C depreciated by 1.6% as compared to previous Friday.
The weekly turnover accounted for RON 24.80 Mn (EUR 7.03 Mn), up 39.4% as compared to the previous weekly transaction, half of it being generated by the trades run with the shares of Remarul 16 Februarie (REFE).
On Monday, a special trade worth RON 6.69 Mn (EUR 1.89 Mn) was run with Remarul 16 Februarie (REFE) shares, the buyer of the shares being Transferoviar Grup that reported on August 20, a holding of 39.56% in the respective company. At the same time, at the base category the value of transactions made with the above mentioned shares was RON 6.63 Mn (EUR 1.87 Mn), leading to a daily turnover with REFE up to RON 13.32 Mn (EUR 3.76 Mn). The total shares transferred on Rasdaq market accounted for 13.18% of Remarul 16 Februarie share capital.
3. Foreign investments
TOP INVESTORS BY NET PURCHASES (table)
FOREIGN PORTFOLIO investments (table)
Foreign investments (YOY) (chart)
In June 2008, the net outflows of the foreigners accounted for RON 17.81 Mn (EUR 4.87 Mn). In June 2008, inflows of foreign investments accounted for RON 101.16 Mn (EUR 27.67 Mn) and outflows accounted for RON 118.97 Mn (EUR 32.54 Mn), according to the National Securities Commission. The non-residents purchased securities worth RON 177.16 Mn (EUR 48.46 Mn) and sold securities worth RON 196.35 Mn (EUR 53.71 Mn). (Source: NSC)
4. Macroeconomics
MACROECONOMIC INDICATORS (table)
Macroeconomic Indicators (chart)
In July, the annualized rate of inflation reached 9%. In July, the consumer price index went up by 9% YOY, posting a monthly increase of 0.7%. The food prices decreased by 0.7% compared to the previous month, the non-food prices climbed by 2.3%, while the tariffs of the services declined by 0.3% as compared to June. (Source: INSSE)
In H108, the trade deficit (FOB-CIF) increased by EUR 1.09 Bn (YOY) to EUR 10.79 Bn. In the first six months of 2008, exports (FOB) worth RON 61.38 Bn (EUR 16.75 Bn), while imports (CIF) worth RON 100.92 Bn (EUR 27.54 Bn), thus the trade deficit (FOB-CIF) was RON 39.54 Bn (EUR 10.79 Bn), up RON 7.18 Bn (EUR 1.09 Bn) as compared to the first six months of 2007. In June 2008, exports (FOB) were worth RON 11.08 Bn (EUR 3.04 Bn), up 36.6% YOY in RON terms (21.2%YOY in EUR terms), while imports (CIF) were worth RON 18.37 Bn (EUR 5.03 Bn) up 32% YOY in RON terms (17.1%YOY in EUR terms), thus the trade deficit (FOBCIF) was RON 7.29 Bn (EUR 1.99 Bn) in June 2008. (Source: INSSE)
In the first six months of the year, the current account deficit reached EUR 7.98 Bn. In the first six months of the year, the current account deficit accounted for EUR
7.98 Bn, up 8.48% YOY mainly due to a wider trade deficit that accounted for EUR 8.67 Bn, up 10.3% YOY. The current account deficit was 61% covered by foreign direct investments that were worth EUR 4.84 Bn, up 63.40% YOY. (Source: BNR)
5. FX - Money market
FOREIGN CURRENCY market (table)
INTERBANK INTEREST RATES (table)
RON/EUR and EUR/USD exchange rates (YOY) (chart)
FIXED INCOME INSTRUMENTS (table)
Comment. RON appreciated against EUR until Wednesday, while on Thursday it lost 0.24%. Still, for the week RON appreciated against EUR by 0.75%. As compared to USD, RON gained 1.50% as compared to previous Friday.
The interest rates on the money market declined in the first four days, reaching on Friday levels higher than 10%, following to the higher bank’s demand of RON for meeting the NBR’s requirements regarding RMO. Thus, ROBID ON/ROBOR ON were 12.85%, respectively 14.01%.
6. International Markets
STOCK EXCHANGE: ATG (Athens); BUX (Budapest); PX50 (Prague); Dow Jones (New York); FTSE100 (London); DAX-30 (Frankfurt); CAC-40 (Paris); STOXX 50(Europe) (table)
BET, ATG, PX50, BUX (YOY) (chart)
Comment. The most important indices of the worldwide capital markets posted losses on the week, except FTSE100 that gained 0.93%. The week started with losses, mainly driven by the drop of the financials shares worldwide as investors were expecting Fannie Mae and Freddie Mac to ask for help from US Treasury. Among other negative factors we mention: the decrease by 11% in July of the housing starts in US, the announcement of recording the highest annual increase of the US producer prices in July since 1981, rising tensions between US and Rusia, the declines in earnings estimates for the major investment banks. The gains posted on Friday by the American and European indices came, mainly, after: Fed president said that inflation rate will be moderate this year, oil prices decline, and rumors regarding a possible acquisition of Lehman Brothers by a Korean bank.
7A. news for Companies Listed on the Bucharest Stock exchange
- BANCA TRANSILVANIA Cluj Napoca - TLV: Banca Transilvania’ employees bought all the shares remained unsubscribed within the share capital increase. Banca Transilvania’ employees acquired all the shares remained unsubscribed shares within the share capital increase, namely 18.06 Mn shares worth RON 6.5 Mn, at a price of RON 0.36 per share, 12% higher than the average price of the last five days. (Source: Mediafax)
- COMPA Sibiu - CMP: Compa reported an export volume higher by 20%YOY. Compa Sibiu, automotive parts producer, posted an increase of 11.49%YOY of net turnover in H108, up to RON 17.10 Mn in H108, on the back of exports rise by 20%YOY. company s net profit dropped 40.54%YOY, to RON 4.33 Mn in H108, due to the RON 30 Mn investments made in Q108. (Source: Compa)
- DAFORA Medias - DAFR: Dafora posted a net profit of RON 4.77 Mn, 14% higher YOY. Dafora Medias posted H108 net profit of 4.77 Mn, 14% higher as compared to H107 net profit of RON 4.19 Mn, while the turnover posted an increase of 15%, from RON 103.6 Mn in H107 to RON 119.34 Mn in H108. The H108 net profit accounts for 20.94% of the FY08 net profit guidance while the turnover represents approximately 35.25% of the estimates. The implied P/E(08E) stands for 10.21x. (Source: Ziarul Financiar)
- IMPACT Developer&Contractor Bucuresti - IMP: The value of real estate assets increased by 93%YTD. The real estate assets owned by Impact Developer&Contractor were valued at EUR 399.76 Mn as of August 15, up 93%YTD. The net asset value of Impact was worth RON 1.63 Bn (EUR 460.17 Mn), according to the financial consolidated results released for June 30,2008. P/NAV08 is 0.22x as of August 18 vs. the average of its SE Europe peers of 0.6x, according to the company s representatives. (Source: Impact)
- OLTCHIM Rm. Valcea - OLT: In H108, Oltchim posted losses of RON 37.24 Mn. Oltchim Rm Valcea, petrochemical producer, posted losses of RON 37.24 Mn, compared with a RON 9.61 Mn net profit in H107, on the back of financial losses of RON 39.4 Mn and an EBIT of RON 2.2 Mn. For the same period, Oltchim revealed a turnover of RON 1.1 Bn (+19.9%YOY), representing 46.04% of the FY08 estimates. Oltchim targets a net profit of RON 9.3 Mn for FY08, after a net loss of RON 95.89 Mn in 2007. (Source: Ziarul Financiar)
- PRODPLAST Bucuresti - PPL: Prodplast Bucuresti shareholders approved the split of the company. On August 19, 2008, the shareholders of Prodplast approved within Extraordinary SGA the split of Prodplast Bucuresti, plastic materials producer into two companies. Thus, one company will continue to produce plastic materials, Prodplast Bucuresti, with a share capital of RON 17.1 Mn (down from current share capital of RON 37.8 Mn), while the second one will be named Prodplast Imobiliare and will have a share capital of RON 20.7 Mn. Prodplast will transfer to Prodplast Imobiliare 77.5% of the assets owned by existing company and will be active in real-estate sector. Prodplast Imobiliare is going to be listed on BSE. (Source: Bursa)
- SIF BANAT-CRISANA Arad - SIF1: SIF Banat-Crisana subscribed cRON 4 Mn within share capital increase of Complex Laboratoare Cluj. SIF Banat-Crisana Arad, financial investment company, subscribed 39 Mn shares worth RON 3.9 Mn, at a price of RON 0.10, within Complex Laboratoare Clu share capital using its preference right, due to the fact that SIF Banat-Crisana owns 87% of Complex Laboratoare that activates in restaurant business area. (Source: Wall Street)
- FINANCIAL investments COMPANIES - SIFs: The net assets value of the five SIFs amounted to RON 9.61 Bn at the end of July08 (down 12.35% YOY). The net assets value of the five SIFs reached RON 9.61 Bn at the end of July08, down 12.35% YOY. At the end of July, SIF Transilvania (SIF3) recorded the highest net asset value among the five SIFs, namely RON 2.34 Bn (down 5.39%YOY), while the lowest one was registered by SIF Moldova (SIF2) namely RON 1.47 Bn (down 15.74% YOY). In the first seven months of 2008, the cumulated net profit of the five SIFs accounted for RON 360.43 Mn, down 7.84%YOY. SIF Moldova (SIF2) posted the highest yearly growth of the 7M08 net profit among all five SIFs, namely 49.95% YOY, up to RON 73.14 Mn. The highest decline of the 7M08 profit was registered by SIF Oltenia (SIF5), namely 42.78%YOY, up to RON 58.75 Mn. SIF Banat Crisana (SIF1) posted the highest net profit among the SIFs in July08, namely RON 29.7, while SIF Transilvania (SIF3) posted a loss of RON 1.86 Mn. (Sursa: SIFs)
- TRANSGAZ Medias - TGN: Transgaz intends to invest RON 65 Mn for acquiring SCADA equipments. Transgaz Medias, the gas pipeline operator, intends to acquire SCADA equipments (Supervisory Control and Data acquisition), for the centralized transmission and supervision of the national gas transport system. The investment will worth RON 65 Mn (cEUR 18.4 Mn) and it will be financed through company s own resources. The implementation of those equipments will take around two years. The selection process of the supplier will be run in two stages. However the second stage of the selection process will consist in direct negotiations with the potential suppliers. (Source: Mediafax)
7B. news for Companies Listed on Rasdaq market
- ASIROM Bucuresti - ASRA: In H108, Asirom posted losses of EUR 7.4 Mn. Asirom, third place amongst Romanian insurance companies, posted losses of RON 27.23 Mn (EUR 7.4 Mn) In H108 vs a net profit of RON 2.09 Mn (EUR 0.6 Mn) in H107. Total revenues increased by 36%YOY up to RON 503.78 Mn in H108 from RON 370.41 Mn in H107. (Source: Ziarul Financiar)
- CERAMICA Iasi - CERE: Ceramica Iasi increase investments with EUR 4.5 Mn. August 19, 2008 ESGA of the materials constructor Ceramica Iasi approved to increase the investment plan for development and production extension, with EUR 4.5 Mn, to EUR 49.5 Mn, to cover the price increase of the construction materials, handwork, fuel and utilities. (Source: Ziarul Financiar)
- CERAMICA Iasi - CERE: Ceramica Iasi posted H108 net profit of RON 7 Mn. Ceramica Iasi, bricks and tiles manufacturer, posted for H108 a net profit of RON 7 Mn (EUR 1.9 Mn), up 9.1% YOY, while its turnover increased by 405 YOY to RON 30.6 Mn (EUR 8.3 Mn). The operating margin reached to 23% compared to 33% in H107. company management estimates that the margins will continue to shrink due to the high costs of the raw materials, salaries expenses as well as to the ongoing investments. Moreover, on August 19, the company s shareholders decided to increase the investment budget by EUR 4.5 Mn to EUR 49 Mn. (Source: Ziarul Financiar, Ceramica Iasi)
- CHIMPEX Constanta - CHEM: Chimpex Constanta posted losses of RON 5.74 Mn, that is c25 times higher than a year ago. Chimpex Constanta, port operator, reported losses of RON 5.74 Mn, is c25 times higher as compared to H107, namely RON 0.22 Mn, while the net turnover dropped 10%YOY, from RON 14.05 Mn in H107 to RON 12.58 Mn in H108. (Sursa: Wall Street)
- IPROEB Bistrita - IPRU: H108 net profit of Iproeb dropped c30%YOY. Iproeb Bistrita, the insulated wires and cables manufacturer, posted a net turnover of RON 72.73 Mn (EUR 20.6 Mn) in H108 (-22.47%YOY), while the net profit dropped 28.41%YOY up to RON 10.30 Mn (EUR 2.9 Mn) in H108, on the back of the lack of products demand from Transelectrica and the decrease of goods production by 14.2%YOY. (Source: Ziarul Financiar)
- LIDO Bucuresti - LIDO: Nova Trade offers RON 19.6 Mn (EUR 5.5 Mn) for 93.38% in Lido Bucuresti. Nova Trade runs a takeover bid for 93.38% in Lido Bucuresti between 26 August and 15 September. The amount offered for the above mentioned stake is RON 19.6 Mn (EUR 5.5 Mn), namely a price of RON 1.7 per share that leads to a discount of c21% as compared to the average price recorded on Rasdaq during last week. Ministry of Tourism is one of the company s shareholders, holding a stake of 42.87%. (Source: see news)
- MECHEL Campia Turzii - INSI: Mechel Campia Turzii posted a net profit of RON 83 Mn in H108, that is c23 times higher than a year-ago period net profit. Mechel Campia Turzii, metallurgical company, posted a net profit of RON 83 Mn, 22.78 times higher than H107 net profit, on the back of an increase of 65% YOY in net sales, that reached RON 393.78 Mn in H108. Mechel will invest EUR 1 Mn in a new production line for extending its production capacities for steel profiles in order to meet the supply on the domestic market. (Source: Ziarul Financiar)
- PROSPECTIUNI Bucuresti - PRSN: In H108 Prospectiuni posted a 13x lower net profit as compared to H107. Prospectiuni, prospecting company, posted a net profit of RON 1.8 Mn, 12.93x lower as compared to H107 result of RON 23.29 Mn, on the back of RON 56.87 Mn net sales, 33.28% lower as compared to H107 net sales of RON 87.52 Mn. (Source: Ziarul Financiar)
- REMARUL 16 FEBRUARIE Cluj Napoca - REFE: 13.18% of Remarul 16 Februarie share capital was traded. On August 18, 2008, 13% of Remarul 16 Februarie Cluj Napoca share capital was traded, namely 269.699 shares worth RON 13.31 Mn, at a price between RON 45 and RON 49.5 per share. In S108 the total turnover increased over two times more as compared to H107 turnover, from RON 39.01 Mn to RON 83.78 Mn, and the profit was ten times higher as compared to the net profit in S107, namely
2008.08.18-22 Romanian Weekly.pdf, 332 Kb
