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
The features of the last week were present on the BSE market this week, too: low turnover, significant daily declines of BSE indices, followed/preceded by small increases. On Wednesday, trading session, the daily turnover reached RON 10.8 Mn (EUR 3.04 Mn), being the lowest daily turnover since April 23. BET posted the highest weekly loss (4.68%), as all companies included in BET declined on the week, basket except SSIF broker (BRK) that posted no change as compared to previous Friday. Antibiotice (ATB) and Impact (IMP) are the two companies in BET posting the highest weekly losses, namely 11.9%, respectively 11.04%. The largest companies in BET, Petrom (SNP) lost 7.01% and BRDGSG (BRD) lost 1.18% on the week. BET-FI lost 1.5% as compared to last Friday, thanks to a weekly gain of 5.26% of SIF Moldova (SIF2). On Thursday trading session, the only deal transaction of the week was concluded. Thus, 780,000 Romcarbon Buzau (ROCE) shares, representing 0.42% of the company’s share capital, were bought by Easter Eagle Fund for RON 819,000 at a price higher by 11.11% than the average price recorded on the Regular market on that day. The buyer, Easter Eagle Fund owned 18.87% of Romcarbon as of May 31, 2008.
1C. ‘Watch List’ Evolution
Watch List’ Evolution (table)
BET-C and Turnover (chart)
Winners/Losers (%) (chart)
Most Traded (%) (chart)
market Trend. BSE indices posted declines for the week, too. Thursday was the only trading session, when all BSE indices closed positively. BET posted the highest decline, namely 4.68%, followed by BET-C with a loss of 2.90% and BET-FI with a loss of 1.5% as compared to last Friday.
Liquidity. The weekly transaction value declined by 22.53% as compared to last week, reaching RON 82.26 Mn (EUR 23.19 Mn), being the lowest weekly turnover of August. On the Regular market, the most traded issuers of the week were BRD-GSG (BRD) with RON 19.45 Mn, SIF Moldova (SIF2) with RON 8.1 Mn, SIF Banat Crisana (SIF1) with RON 7.74 Mn, Banca Transilvania (TLV) with RON 7.7 Mn.
2. Rasdaq market Indicators
RAQ-C and Turnover (YOY) (chart)
Most Traded (%) (chart)
RAQ – I and RAQ – II posted slight increases of 0.1%, while RAQ – C recovered from the loss of 1.6% posted last week and showed a depreciation of only 0.3%, after a week dominated by low turnover and volumes.
The weekly turnover reached RON 9.75 Mn (EUR 2.75 Mn), from RON 24.80 Mn (EUR 7.03 Mn), triggered by the lack of special trades that were supporting the weekly turnover at higher levels.
The most traded issuer of the week was Dunapref Giurgiu (DGNA), manufacturer of concrete products for construction purposes, with a weekly volume of 61,844 shares and a weekly turnover of RON 0.865 Mn (EUR 0.244 Mn). On 27 August, Wagma Holdings Ltd., reported a 7.57% stake in the Giurgiu based company, after the exit of Voyager Baia Mare, which held a 7.02% stake. DGNA is part of the CCCF Bucuresti group that has recently increased its share capital by RON 50 Mn and has as a majority shareholder the same Cyprus based investment vehicle, Wagma Holdings Ltd.
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. For the week, RON depreciated against the EUR by 0.32% and by 0.99% against the USD after volatile trading during the week, following fears regarding possible recession of the European economy and attracting consequently from investors’ side substantial risk aversion on emerging markets. The highest daily depreciation against the EUR was recorded on Tuesday, when EUR jumped to 3.5455 RON/EUR from 3.5224 RON/EUR, value recorded on Monday.
On the interbank market, ROBID ON/ROBOR ON reached on Friday the highest level since 12 August, after five consecutive days above 12.8%.
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 week ended mixed for the most important indices of the world’s capital markets with DJIA posting a loss of 0.73% on the week, and major European indices posting weekly gains. The week started with losses for US and Europe markets following to declines in banking shares, as worries regarding further write downs in banks’ assets re-appeared. On Monday, in US it was announced that sales of existing homes climb in July alongside inventories. The sentiment change following to Monday trading session, and further gains were recorded by US and Europe indices helped by banks and energy, miners’ shares. On Thursday, shares were helped mainly by the upward revision in Q2 US GDP to 3.3% from initial 1.9% and by the announcement of the decline in the applications for state unemployment benefits. On Friday, the US Commerce Department announced that consumer spending fell 0.7% in July the most in three years alongside with personal income driving the DJIA down 1.5%. European shares closed positively on Friday, following to a decline in August consumer annual inflation in Euro-zone to 3.8% and good results reported by French retailers. On M&A side, we might mention that Commerzbank is closed to buy Allianz banking arm, Dresdner.
7A. news for Companies Listed on the Bucharest Stock exchange
- IMPACT DEVELOPER&CONTRACTOR Bucuresti - IMP: Impact Developer&Constructor plans to contract a EUR 12 Mn loan to finance housing project. Impact Developer&Contractor shareholders will decide during September 27, 2008 ESGA whether to contract a EUR 12 Mn loan from Piraeus Bank to finance a EUR 500 Mn housing project located in Dealul Lomb, Cluj-Napoca which should include at least 1,000 residential units. (Source: see news)
- IMPACT Bucuresti - IMP: Impact s BOD called for Ordinary SGA on September 27. Impact s BOD called for Ordinary SGA on September 27 for approving: the increase by EUR 4 Mn of a loan facility granted by Banca Romaneasca to Impact and the afferent guarantees; the loan worth EUR 12 Mn granted by Piraeus Bank for financing the Lomb project in Cluj and afferent guarantees; the allocation price of the repurchased shares to be distributed to its managers and employees within the employees benefits program. The current proposal is that the allocation price to be 5% of the average acquisition price vs. the average acquisition price, as it was decided previously. The shareholders of record as of September 12 (transaction date), are entitled to participated to the SGA. (Source: Impact)
- PETROM Bucuresti - SNP: Petrom set up an agreement with the Federation of Romanian Transport Operators on monthly supplying over 2 Mn liters of fuel. On August 28, 2008, Petrom oil and gas producer signed an agreement with the Federation of Romanian Transport Operators (FORT) for supplying on a monthly basis over 2 Mn liters of fuel to the members of the above-mentioned federation. All FORT members are subject to the same price discount applied at the price pump, as well as of the fuel consumption crediting. (Source: Mediafax)
- ROMPETROL RAFINARE Constanta - RRC: Rompetrol Rafinare requested an authorization for energy supply. Rompetrol Rafinare submitted a request to The National Energy Regulatory Authority (ANRE) with a view to obtain an authorization for supplying energy. The company announced its intention of becoming energy supplier almost two years ago. At that time, Rompetrol was announcing its intention of building a power plant in cogeneration at Midia, the announced value of the investment being EUR c40 Mn. (Source: Ziarul Financiar)
- SIF BANAT-CRISANA ARAD, CALIPSO Oradea - SIF1, CAOR: SIF Banat-Crisana subscribed RON 36.50 Mn (EUR 10.37 Mn) to the share capital increase of S.C. Calipso S.A. Oradea. SIF Banat-Crisana subscribed RON 36.50 Mn (EUR 10.37 Mn) within the share capital increase of S.C. Calipso S.A. Oradea. The company bought 14.6 Mn shares at a price of RON 2.5 per share. (Source: SIF Banat-Crisana Arad)
- TRANSGAZ Medias - TGN: The persons whose properties have been abusively seized will have the possibility to buy Transgaz shares at a price higher by 22% compared to the market price. The Economy and Finance Ministry will offer to those individuals whose properties have been abusively seized during the communist regime, the possibility to buy shares in Transgaz Medias, natural gas transmission operator, at a price of RON 235.66 per share up by c22% compared to the market price as of August 25, 2008. (Sursa: Mediafax)
7B. news for Companies Listed on Rasdaq market
- ARCELOR MITTAL TUBULAR PRODUCTS Iasi - TPRO: Arcelor Mittal posted a net profit of RON 17.4 Mn for H108. Arcelor Mittal, manufacturer of steel tubes, posted for H108 a net profit of RON 17.39 Mn, while in H107 the company recorded losses of RON 2.58 Mn. The increased profitability recorded in H108 came as a result of increased demand on the international market for steel tubes, the company exporting 18.53% more, in terms of volume, in H108 compared to H107. The positive results were also pushed by the price appreciation of the steel tubes which grew by 17.8% in H108. (Source: Arcelor Mittal)
- AUTOMOBILE Craiova – AUCS: Automobile Craiova reported a 26.5% net profit decrease in H108 as compared to H107. Automobile Craiova, auto assembly plant owned by US automaker Ford Co., reported a net profit of RON 1.08 Mn for H108, 26.5% lower as compared to H107 net profit of RON 1.47 Mn, while the total turnover dropped 2.37%, to RON 4.98 Mn in H108. (Source: Mediafax)
- AVIOANE Craiova - AVIO: Avioane Craiova reported fo H108 losses of RON 8.62 Mn, almost two times higher as compared to H107. Avioane Craiova, airplane maker, reported losses of RON 8.62 Mn for H108, 2.78 times higher as compared to H107 losses of RON 3.10 Mn, while the operating revenues halved, from RON 13.41 Mn in H107 to RON 6.93 Mn in H108, due to less number of sealed contracts. The company posted first semester debts of RON 28.8 Mn, up 25% as compared to H107, out of which RON c20 Mn representing budget liabilities. (Source: Mediafax)
- BERE AZUGA - BEGY: Bere Azuga posted losses of RON 0.86 Mn for H108. In H108, Bere Azuga, beer producer, posted RON 0.86 Mn losses as compared to RON c0.13 Mn net profit posted in H107, while the turnover increased by 11% YOY, up to RON 15.28 Mn for 2008, after contracting a RON 30 Mn (EUR 8.5 Mn) loan for expanding the production capacity. (Source: Ziarul Financiar)
- COMCEREAL Constanta - CCRL: Comcereal Constanta posted a net profit of 4.71 Mn RON for H108, 9 times higher as compared to H107 net profit. Comcereal Constanta, cereal and oilseeds trader, reported a net profit of RON 4.71 Mn for H108, 8.72 times higher as compared to H107 net profit of RON 0.54 Mn, while the turnover dropped 8.47%YOY, from RON 43.70 Mn in H107 to RON 40 Mn in H108, due to the fact that the main activity in H108 was the trade of cereal and oilseeds from inventories, while the acquisition activity of cereals was low. (Source: Mediafax)
- COMVEX Constanta - CMVX: Comvex Constanta H108 net profit doubled compared to H107. In H108, Comvex Constanta, port operator, posted doubled revenues, from RON 36.86 Mn in H107 to RON 73.41 Mn in H108, while the net profit increased by 90% YOY, from RON 8.9 Mn in H107 to RON 16.88 Mn in H108. The company wants to contract a RON 70 Mn (EUR 20 Mn) investment loan for the construction of a new ore unload and transport line. (Source: Mediafax, Ziarul Financiar)
- CONCEFA Sibiu - COFI: Concefa Sibiu posted for H108 a turnover of RON 45.82 Mn, up by 50% YOY. Concefa Sibiu, construction company, posted for H108 a turnover of RON 45.82 Mn, 50% higher as compared to H107, while the net profit dropped 42.59%, to RON 0.74 Mn, as compared to H107, on the back of operating expenses increase from RON 34.92 Mn in H107 to RON 60.20 Mn and of 74.14% increase in financial expenses. (Source: Mediafax)
- CONPET Ploiesti - COTE: Conpet Ploiesti reported a H108 net profit two times higher than the company s forecasted profit for 2008. Conpet Ploiesti, operator of crude oil pipelines, reported a net profit of RON 33.16 Mn for H108, more than double as compared to the company s forecasted profit for the entire 2008, namely RON 15.52 Mn. The company s H108 net profit was 2.7 times higher. The growth of the net profit was driven by the increase of 25.3%YOY of the H108 company s turnover but also by extraordinary revenues registered in the period of c.RON 16 Mn, representing the recovery of a commercial liability held on Petrom and all the penalties attached to it. Taking out these extraordinary revenues the gross profit of the company would have been RON 23 Mn (+87%YOY) in H108. Another RON 4.2 Mn of its revenues came from recovery of some provisions. (Source: Ziarul Financiar)
- ROMCARBON Buzau - ROCE: Romcarbon Buzau increased its participation in Greenfiber and Greentech. Romcarbon Buzau, plastic material processor, increased its participation in Greenfiber International company from 31.48% to 32.24% by paying USD 109,000, and in Greentech company from 25% to 32% paying USD 177,660. Romcarbon has an investment plan for 2008 of RON 53.68 Mn and an estimated turnover of RON 90.6 Mn. (Source: Bursa)
7C. news on Economy and privatization
- Allotment rights for the share capital changes operations. The National Securities Commission (NSC) has authorized the issuance of the allotment rights for operations like share capital increase, share capital decrease, merger and spin-off operations of companies listed on the Bucharest Stock exchange or on the Rasdaq market. Following this decision, for example, the companies will have the possibility to issue allotment rights for the share capital increase operations, each share having attached one allotment right. (Source: Ziarul Financiar)
- Fitch director declared that the economic growth is unsustainable. The quick growth of Romania is unsustainable so the risk of a sudden fall increased, and this could start because of the foreign finance if the international markets would lose their trust in the fundamental indices of the Romanian economy. The arguments presented by Fitch director are: high inflation rate, strong economic growth of 8.2% in H108, current account of 17% of GDP upward estimation, significant wage growth and loan rapid growth. NBR activity is considered reasonable, but a higher monetary policy interest rate could destabilize the economy by attracting speculative foreign capital. (Source: Ziarul Financiar)
- GDP increased by 8.8% in H108. The H108 estimated gross domestic product posted an increase of 8.8% over the same period of last year, according to the National Statistics Institute. In Q208, the increase in real terms accounted for 9.3% YOY. (Source: www.tmctv.ro)
In September, the Ministry of Economy and Finance (MEF) plans to issue RON 1.5 Bn worth of government securities. On September 8, 2008, MEF scheduled a five-years benchmark treasury notes auction, and on September 22 was scheduled a three-years benchmark treasury notes auction, each worth RON 400 Mn. On September 12, 2008, MEF scheduled a six-month T-bills auction, while the one-year T-Bills auction was scheduled for September 26, 2008, each worth RON 350 Mn. (Source: Mediafax)
- The Ministry of Economy and Finance (MEF) sold 1 year T-bills worth RON 133.7 Mn. On August 28, 2008, the Ministry of Economy and Finance (MEF) sold 1 year T-bills worth RON 133.7 Mn, at an average yield of 11.17%, higher as compared to the previous auction, of 10.96%. The T-bills were issued at a discount from their face value. The scheduled value of the auction was RON 400 Mn, with a maximum yield accepted by MEF of maximum 11.25%, while the total bids of the commercial banks were worth RON 597.52 Mn. (Source: Mediafax)
- On August 27, BCR s shareholders elected three persons as members within bank s Supervision Council. On August 27, the Ordinary Shareholders Meeting elected Mr. Manfred Wimmer as member and vice-president of BCR s Supervision Council. The other two members, representing two of the nominees made by the five Financial Investment Companies (SIFs), are: Mr. Mihai Fercala, president of SIF Transilvania, and Mr. Tudor Ciurezu, general manager of SIF Oltenia, respectively. The constitutive act of BCR was changed recently in order two persons out of all persons nominated by the SIFs to be elected by Ordinary Shareholders Meeting as members within banks Supervision Council. (Source: BCR)
8. company Announcements
FINANCIAL CALENDAR FOR THE FORTHCOMING WEEK
| Date | Issuer | Ticker | event |
| 1 Sep 2008 | Banca TRANSILVANIA | TLV | Ordinary SGA and Extraordinary SGA |
| 4 Sep 2008 | ROMPETROL RAFINARE Constanta | RRC | Reference date ( transaction date) ESGA |
CORPORATE ACTIONS
For the next week (1 – 5 September 2008) there are no corporate actions announced for the ‘Watchlist’ companies
Note: The events in the “Company Announcements” section refer to the companies included in the ‘Watchlist’
Source: Bucharest Stock exchange, company announcements
9. Trading Data for BSE Issuers (table)
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