Demand from Small Investors Lifts Most Bulgarian Stock Indices

The SOFIX index, which includes the 20 most liquid stocks on the Bulgarian Stock Exchange (BSE), rose 4.78% to 360.95 points, and the broader BG 40 index, which tracks the 40 most traded shares on the bourse, gained 3.9% to 105.19.

The trading session was marked by increased optimism and demand, Sofia-based Bulbrokers said in a daily note.

“Unprecedentedly low stock prices started attracting more and more buyers and this had its most positive impact on the the most liquid shares in the first place,” the brokerage said.

The rise was paced by road constriction companies Moststroy, Holding Roads and Trace Group Hold, which posted double-digit growth.

Moststroy jumped 14.97% to 4.59 levs in volume of 443 shares, Holding Roads rose 12.8% to 3.66 levs in turnover of 35,918 shares and Trace Group Hold climbed 13.71% to 39.80 levs with 1,016 shares changing hands.

Among the biggest gainers also were fertiliser maker Neochim, which soared 17.83% to 37.00 levs in volume of 345 shares, and hydraulic equipment manufacturer M+S Hydraulic, which surged 23.72% to 4.94 levs on turnover of 1,130 shares.

On Tuesday, gainers outnumbered decliners by 63 to 34 and 16 shares closed flat.

Small investors are at the root of the rises which can be seen from the smaller volumes of Tuesday's transactions, Bulbrokers said.

BSE's turnover, excluding block and other pre-agreed deals, slumped to 4.2 million levs from 36.5 million levs on Monday and a deal in shares of fuel retailer Petrol lifted overall volumes.

Petrol lost 9.09% to 10.00 levs with 4,741 shares changing hands.

The BG TotalReturn30 (BG TR30) index, in which companies with a free float of at least 10% have equal weight, rose 3.66% to 282.09 points, while the BG-REIT index, tracking the performance of real estate investment trusts, lost 0.44% to 47.42.

The Dnevnik 20 index, calculated by local business daily Dnevnik from the share prices of the 20 leading companies in terms of liquidity and market capitalisation, advanced 4.65% to 56.94 points.

(1 euro = 1.95583 Bulgarian levs)