Sofia bourse blue-chip index edges down, Neochim shares bounce back

The SOFIX was dragged down by a 3.70% drop in the share price of diversified group Doverie United Holding [BUL:5DOV].

Doverie United Holding also led decliners among members of the equally-weighted BGTR30 index, which ended the session 0.09% lower at 500.74 points.

Bulgarian fertilisers maker Neochim [BUL:3NB] gained most among BSE-listed companies, as its share price jumped 26.71% to 20.40 levs. The company offset a 15.26% plunge on Monday, when its shares sunk to a 15-year low of 16.1 levs.

Last week, Bulgaria's deputy energy minister Zhecho Stankov made a visit to Neochim's production plant. The visit was prompted by the planned lay-offs, which are necessary due to the company's "tough financial state," the energy ministry said in a statement on Friday.

In the first half of 2019, Neochim booked a consolidated net profit of 1.1 million levs as it boosted its revenue to 173.8 million levs from 122.1 million levs the year before, according to its annual financial statement.

Last month, the company said that it is resuming nitrogen fertilisers production after a planned annual maintenance of its facilities. However, the company once again stressed that it is operating in very difficult market conditions as natural gas prices in the country are among the highest in the EU.

However, Neochim's gains were not enough to lead the wider BGBX40 index to green territory on Tuesday. The index closed 0.07% lower at 111 points, as it was hit by aluminium products maker Alcomet [BUL:6AM], which lost 7.07%, and Doverie United Holding.

The BGREIT index, which tracks the performance of real estate investment trusts, gained 0.23% to 127.97 points.

Total regulated market trading turnover rose to 239,000 levs on Tuesday from 217,000 levs on Monday.

(1 euro = 1.95583 levs)