market wrap-up
The week’s negative trend continuedon Friday after a positive step from Thursday. The drop in SOFIX 585.39 (-26.13%) moved the index to the levels from September 2004. Top loser was Sopharma (3JR), where heavy sell pressure pushed the price to BGN 2.032 (-17.73%) with total volume of 89k. The other losers were Bulgarian-American credit bank (5BN, BGN 20.501, -17.67%), Industrial Holding Bulgaria (4ID, BGN 4.373, -10.76%) and Corporate Commercial Bank (6C9, BGN 70.00, -9.09%). BG40 fixed 152.21 (-7.35%) and BGTR30 reached a new all-time low of 403.92 (-6.78%). The main down pressure came from Chimimport - (6C4, BGN 3.80, -7.32%), Odessos Shiprepair Yard (5ODE, BGN 168.90, -10.63%) and Toplivo (3TV,BGN 9.65, -9.39%). The most liquid company was First Investment Bank (5F4, BGN 3.249, -5.83%) where more than 604k shares changed hands.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 585.39 | 152.21 | 62.84 | 403.92 |
| 1-day change (%) | -8.36 | -7.35 | -5.12 | -6.78 |
| 7-day change (%) | -22.12 | -18.11 | -17.81 | -18.37 |
| 90-day change (%) | -46.42 | -45.82 | -32.70 | -44.43 |
| 365-day change (%) | -69.46 | -75.17 | -37.16 | -59.61 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 2 455 044 |
| BSE Daily Volume (BGN) | 7 259 466 |
| Avg Daily Turnover YTD (BGN) | 11 105 570 |
| Avg Daily Turnover 12 mo. (BGN) | 18 295 383 |
Most recent macro data
| Inflation (HICP, M/M August) | -0.1% |
| Inflation (HICP, cum. 2008) | 7.1% |
| LEONIA Reference Rate | 5.81% |
| SOFIBOR /3 months/ | 7.548% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.44033 | 0.01084 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3579 | -0.0103 |
Sofix/ BG 40 / BGREIT / BGTR30 (charts)
DAILY TRADING (selected stocks)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Real estate
German firm Degi buys Mall of Sofia
German company Degi has acquired shopping centre Mall of Sofia, said the anti-trust authority, which should rule on the deal.
Sources told Dnevnik daily that Degi Deutsche Gesellschaft fuer Immobilienfonds was also a bidder for the capital’s City Center Sofia but lost to U.S. company Heitman, which offered EUR 101m. Degi’s marketing director and press spokesman Dietmar Mueller declined to comment until the deal was wrapped up. No financial details or yield about the new sale are available. City Center Sofia was sold at a 7.1% yield.
In 2006 Mall of Sofia was bought by Irish investment fund Quinlan Private and GE Real Estate from Israeli companies Ocif and Aviv holding 25% of the capital each and IT International Theatres with a 50% stake.
Mall of Sofia was unveiled in May 2006 in downtown Sofia and has a built up area of 73k sq. m. All 130 shops have been rented out to major global brands for EUR 30-60 per sq. m. a month. The complex boasts Bulgaria’s first 3D cinema and 12 other cinema halls.
Source: Dnevnik
Corporate news
Bulgarian American credit Bank [5BN]
ROE continued to decrease
For the Jan-Sep’08 period Bulgarian American credit Bank reported assets of BGN 836m (up 20% YtD), loans to non-financial institutions of BGN 664m (up 13% YtD) and net income of BGN 44m (up 15% YoY). TTM ROE came in at 35% (down 3.5pp YoY).
Source: FFBH
Economic & Investment Bank AD [5EC]
EIBank: banks’ lending policy to get more prudent
Bulgarian banks will be more conservative about their lending policy, especially in terms of collateral, EIBank commercial representative Hristina Filipova told at a seminar organized by the bank. The cost of funding will continue to grow raising further the interest rates on retail loans, said EIBank retail banking head Teodor Mladenov. EIBank will continue to give 80% of the cost of mortgage properties and will not cut down on lending in response to the crisis. Deposit rates will also keep the uptrend. The bank rolled out a new six-month deposit with promotional annual rates of 8.2% for BGNand 6.2% for EUR.
Source: Dnevnik
Bulgarian Telecommunications company [5BT]
BTC urges 40% lower fixed-to-mobile rates
Bulgaria’s dominant fixed-line carrier BTC pressed in a letter signed by CEO Bernard Moscheni forimmediate decrease of fixed-to-mobile call rates by no less than 40%. The letter was sent to more than 500 people including Bulgarian MPs, telecoms commissioner Viviane Reding and journalists. Bulgaria’s telecoms watchdog CRC made a surprise decision last month to change the scheme for gradual reduction of fixed-to-mobile termination prices adopted in January. The statement came out as the ultimatum expired that Moscheni gave cellular operators to cut prices and threatened to unilaterally change interconnection contracts. BTC backed the regulator’s decision dubbing it “the end of regulatory vacation” of mobile phone operators. However, Mobiltel, Bulgaria’s biggest wireless carrier, accused the CRC of cartel with BTC and rose in favour of the January scheme. Globul, the market’s other major cell phone operator, said the regulatory environment had been unpredictable in the recent months.
Under the new scheme,fixed-to-mobile charges will fall by over 60% in peak hours and by 67% in off-peak hours from 1 July 2008 till 1 July 2010. Call termination will be slashed by 50% in peak and in off-peak hours.
Mobile operators have cut wholesale call termination rates twice so far in the year slashing fixed-tomobile prices by 16% for peak calls and 21% for off-peak calls.
Source: Dnevnik
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