Headlines
Trace Group Ranked First in a Multimillion Underground Construction Project
Moody's Downgrades Petrol Group’s Ratings
Chimimport to Raise Capital by some EUR 100 mln
S&P places Bulgaria’s rating on Negative Watch
Central Bank Sees the Budget Surplus Shrinking
| Value | Daily Chng | YTD Chng | |
| SOFIX | 548.02 | -8.44% | -69.00% |
| BG 40 | 149.62 | -5.98% | -71.12% |
| BG REIT | 57.35 | 0.28% | -44.45% |
| BGTR 30 | 384.61 | -6.38% | -64.96% |
| Shares Turnover (BGN thnds) | 4 437.62 |
| Bonds Turnover (BGN thnds) | 121.97 |
| market Capitalisation (BGN mln) | 13 470.47 |
| market Capitalisation/GDP | 21% |
| Top Gainers | Ticker | Change |
| Advance TerraFund REIT | 6A6 | 4.17% |
| Intercapital Property Devt. REIT | 4IC | 0.14% |
| CB Corp. Commercial Bank | 6C9 | 0.00% |
| Top Losers | Ticker | Change |
| Lead & Zinc Complex | 5OTZ | -27.27% |
| Zaharni Zavodi AD | 3Z9 | -18.11% |
| CB Central Cooperative Bank | 4CF | -17.45% |
Not Again!
Not again! That's what most of the market players must have been thinking on Friday as the SOFIX was heading to its 8.4% daily slump. The index lost just as much on October 6 and this Friday reached its lowest level since August 17, 2004.
Global stock markets sunk as well on a wave of panic selling.
The most liquid stock on Friday, Corporater Commercial Bank [6C9; +0.00%] ended flat at BGN 70, while the second most liquid, Chimimport [6C4; -7.86%], fell by 7.86% to BGN 3.4. The holding company earlier in the day said it will seek some BGN 200 mln in a capital increase.
Lead & Zinc Complex [5OTZ; -27.27%] tumbled by 27.27% to BGN 12. It was Friday's biggest loser after HBG Investment Property Fund REIT [4H7; -90.00%], which slumped by 90% to BGN 0.1.
Only 12 shares traded on Friday ended higher, while 74 lost ground. The day's top gainer was Advance Terrafund REIT [6A6, +4.17%], which closed at BGN 1.25 in a volume of BGN 113,205.
Corporate news
Trace Group Ranked First in a Multimillion Underground Construction Project
Metro Trace, a consortium led by Trace Group [T57], was ranked first to build a 2.15-kilometre section of the Sofia’s underground system with a bid worth BGN 185 mln, the heavy construction company announced on Thursday. The tender is still open and the official ranking will be announced after November 1st. Metro Trace will start constructing another 2.6-kilometre section of the underground worth BGN 142 mln in December, is added in the statement.
Moody's Downgrades Petrol Group’s Ratings
rating agency Moody's has lowered Bulgaria's fuel retailer Petrol ratings to Caa1 from B2. The ratings assigned to the senior unsecured guaranteed EUR 100 mln Eurobond was also downgraded to Caa2/LGD 5 (74%) from B3/LGD 5 (73%). “The rating downgrade reflects the sustained deterioration in adjusted debt and cash flow metrics of the group over the past twelve months”, the agency said. The ratings remains under review for further downgrade. The agency will be focused on the measures that Petrol's management will undertake in order to restore the capital base of the group and support the liquidity requirements of its network in the near term future, as well as the outlook for the group in light of current market conditions and the recent changes to its Business profile, said Moody's.
Chimimport to Raise Capital by some EUR 100 mln
Chimimport intends to undertake a capital increase by the end of the year, the company announced on Friday. The preliminary plan of the company is to issue up to 50 millions new shares at some BGN 4 per share. The funds raised in the capital hike will be used to finance the group's investment plans and operations, is said in a statement.
Economy and Politics
S&P places Bulgaria’s rating on Negative Watch
Standard & Poor's placed Bulgaria's credit rating of "BBB+/A-2" foreign and local currency sovereign credit ratings on CreditWatch negative on concerns over the country's heightened external vulnerabilities. "Bulgaria's economy had been overheating when it entered the current period of credit market turmoil," the agency said on Thursday. The country is facing a widening current account deficit and decreasing foreign direct investments, insufficient to cover the gap. "We expect the general government surplus to exceed 3.5 percent of GDP in 2008, general government debt to reach 15 percent of GDP, and liquid fiscal assets to rise to around 17 percent of GDP," S&P said. "A resolution of the CreditWatch action is likely this month pending further Information from the sovereign regarding its response to the intensifying pressures resulting from external imbalances," the agency added.
Central Bank Sees the Budget Surplus Shrinking
The Bulgarian National Bank expects the budget surplus to decrease to 4% of GDP, equal to some EUR 1.3 bn, by the end of the year, BNB announced on Thursday. The budget surplus rose to EUR 1.9 bn, or 5.7% of the projected annual GDP, in the first six months of the year. "The revenue growth rate will probably decrease slightly in the second half of 2008 due to the high base and the slowdown in inflation. At the same time, we expect a certain acceleration on the spendings side of the budget,", BNB said in its latest review of the Bulgarian economy.
Upcoming Events
Eurohold Bulgaria [4EH]
27.10.2008 - Eurohold Bulgaria [4EH] holds an extraordinary shareholders’ meeting at 11:00 local time.
BG40 Stocks (table)
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Newsletter Daily 2008.10.24.pdf, 281 Kb
