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SOFIA (Bulgaria), July 11 (SeeNews) - Bulgaria's blue-chip index SOFIX is expected to add 5% in 2018, provided that the impact of the trade war between the U.S. and the other major economies is limited and the West European stock markets erase losses by the end of the year, local brokerage Elana Trading said.
The performance of the Bulgarian bourse is expected to be affected by a projected slowdown in global economic activity, Elana Trading said in a half-year forecasts report.
Furthermore, the modest growth of SOFIX reflects the lacklustre financial performance of the local companies, it added.
"This has a negative impact on the performance of their shares, although many investors focus on the long-term development of the companies," the report reads.
SOFIX has lost 7% since the beginning of the year.
In January, Elana Trading said it expects SOFIX to rise by 15% in 2018, driven by the positive financial results of local companies.
However, according to the brokerage firm, the initial public offering (IPO) of poultry producer Gradus in June could attract other listings.
In June, Gradus offered investors 55.6 million shares, representing a 25% stake in the company, at a price range of 1.80-2.35 levs ($1.07-1.4/0.92- 1.2 euro). The company raised a total of 81.4 million levs, making it the largest IPO on the Sofia bourse since 2007.
(1 euro = 1.95583 levs)