market wrap-up
The week started with a positive trading session. Despite the low liquidity all indices moved up. SOFIX reached 600.8 (+2.63%), BG40 - 158.58 (+4.19%) and BGTR30 - 414.7 (+2.67%) while BG REIT fixed 63.07 (+0.37%). The day gainer was Bulgarian American credit Bank (5BN, BGN 24.00, +17.06%), followed by Kaolin (6K1, BGN 4.80, +11.63%) and Fazerles (4F6, BGN 72.00, +10.77%). Among the top losers of the session were Sparky Eltos (SL9, BGN 4.20, -12.32%), M+S Hydraulic (5MH, BGN 5.81, -9.03%) and Moststroy (5MY, BGN 10.00, -4.21%). The most liquid company for second consecutive day was First Investment Bank (5F4, BGN 3.50, +7.69%) where more than 106k shares change hands.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 600.80 | 158.58 | 63.07 | 414.70 |
| 1-day change (%) | 2.63 | 4.19 | 0.37 | 2.67 |
| 7-day change (%) | -12.71 | -7.52 | -11.09 | -8.97 |
| 90-day change (%) | -43.79 | -41.62 | -31.27 | -41.56 |
| 365-day change (%) | -69.14 | -74.05 | -36.93 | -58.53 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 1 324 804 |
| BSE Daily Volume (BGN) | 3 557 472 |
| Avg Daily Turnover YTD (BGN) | 11 067 255 |
| Avg Daily Turnover 12 mo. (BGN) | 18 129 776 |
Most recent macro data
| Inflation (HICP, M/M September) | 0.9% |
| Inflation (HICP, cum. 2008) | 8.0% |
| LEONIA Reference Rate | 5.83% |
| SOFIBOR /3 months/ | 7.549% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (August 2008) | 5.89% |
exchange rates
| Current | Change | |
| BGN/USD | 1.434 | -0.00633 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3639 | 0.00599 |
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
Macroeconomicnews and statistics
Bulgaria’s inflation slows down to 11% YoY in Sep’08
CPI continued to slow down in September 2008 easing to 11% YoY, theNational Statistics Institute announced. In June 2008, inflation reached record levels of 15.3% YoY.
However, the hike in natural gas prices from October 1 is expected to push the costs of some products causing analysts to revise projections and see the inflation remain double-digit in end- 2008. The government held on to its forecast of under 10%.
HICP inflation in September was 0.9% MoM, 11.4% YoY and 8% YtD. Clothes and shoes registered 3.0% MoM growth while education costs grew 10.5% MoM according to HICP data.
Source: Dnevnik; NSI; FFBH
Energy sector
Bulgarian-Portuguese JV plans to build six biomass plants
Bulgarian-Portuguese joint venture Mape Development plans to invest EUR 150m into the construction of six biomass-fuelled power plants with a combined installed capacity of 30 MW in Bulgaria over the next four years, the firm said.
The first facility should be built in Panagyurishte, central Bulgaria, and will have a capacity of 5 to 10 MW. Mape Development is part of Portuguese consortium MAPA SGPS Group.
Different investors have so far pledged to develop 40-50 MW of biomass-fuelled projects attracted by the preferential energy price for combined production. Currently Bulgaria’s sole biomass power plant is located in the ski resort of Bansko and pumps heating energy into hotels and municipal buildings in the area.
Source: Dnevnik
Energy sector
Maritsa East TPP opens desulphurisation units
On October 13 Bulgarian prime-minister Sergei Stanisev opened the gas desulphurisation installation of units 1 and 2 of the country’s biggest coal-fired power plant Maritsa East 2. The company also opened the reconstructed unit 3 of the plant, whose capacity was increased to 177 MW three months ahead of schedule.
Works on the construction of the FGD installations at units 3 and 4 should start in the spring of 2009. Japanese company Mutsui was picked to rehabilitate Maritsa East 2 units 1 to 4. Italian-Chinese consortium Idreco- Insigma should be assigned the upgrade of units 5 and 6.
Source: Dnevnik
Tourism
Bulgaria visited by 4.3m foreign tourists in Jan-Aug 2008
Over 4.3m foreign tourists visited Bulgaria in January-August 2008, which is a 15% YoY increase, according to preliminary data announced Monday by the head of the country's State Tourism Agency Aneliya Krushkova. The foreigners spent over EUR 1.5bn in Bulgaria for the specified period, which is a 12.1% YoY growth. Over the period almost 4m Bulgarians traveled abroad spending some EUR 911m - a 25% YoY growth.
Source: Novinite.com
CORPORATE news
Evrohold Bulgaria AD [4EH]
Eurohold Bulgaria plans to establish leasing subholding
Eurohold Bulgaria included an additional point to the extraordinary GSM scheduled for October 27. The shareholders should vote on the establishment of a subsidiary named Eurolease Holding, registered in the Netherlands. If voted, Eurohold Bulgaria should make contribution in-kind of its stakes in Eurolease Auto Sofia, Eurolease Auto Bucharest and Eurolease Auto Skopje. Eurohold stakes are estimated at BGN 25.6m in total according to the holding.
The move follows Eurohold’s strategy to consolidate its operations into insurance, leasing and auto sales divisions to ease funding and acquisitions in the segment, the company said.
Source: Dnevnik; FFBH
Insurance company
Euro Ins AD [5IC]
Euroins plans a BGN 2.5m capital increase
The shareholders of Insurance company Euroins should vote on November 28 on a capital raise by BGN 2.5m to BGN 12.5m. The announcement stated that, if voted, the new shares should be issued at BGN 4 each. The capital raise should be considered successful if 50% of the new shares are subscribed.
Majority owner Euroins Insurance Group said it would use out its rights to keep ownership on at least 70% of the company.
The capital move is in line with Euroins’s strategy to take over the re-insurance Business of its majority holder’s other insurance units in 2009. In addition, the increase in the company’s premium income which has doubled over the last 3 years required larger reserves and own funds, the company said.
The extraordinary general meeting should also vote on a change the insurer’sstatutes to authorize management board to take decision for further capital rises up to BGN 100m.
In related news Central Depository revealed that Euroins Insurance Group has increased its stake in Euroins to above 70%.
Source: Dnevnik; Investor.bg; FFBH
Bulgarian American credit Bank [5BN]
Gramercy increases its stake in BACB to above 15%
The weekly bulletin of Central Depository showed that Gramercy Emerging Markets Funds has increased its stake in Bulgarian American credit Bank to above 15%.
Source: Investor.bg; FFBH
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