market WRAP-UP
The negative trend continued on Thursday. In the morning almost every stock was under heavy sell pressure and some of the companies even registered double digit losses. In the end of the session the indexes recovered slightly but still finished below Wednesday levels. Top loser was SOFIX which lost 5.26% to 607.74 with main pressure coming from Sparky Eltos (SL9, BGN 4.04, -10.22%), Toplivo (3TV, BGN 9.92, -8.91%), Chimimport (6C4, BGN 4.03, -8.41%) and Bulgarian American credit Bank (5BN, BGN 23, -8.00%). The only gainer in the index was M+S Hydraulic (5MH, BGN 6.55, +9.17%) where only 380 shares changed hands. The price weighted BG40 lost 4.27% to 161.71 and equally-weighted BGTR30 declined 4.24% to 419.26.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 607.74 | 161.71 | 64.60 | 419.26 |
| 1-day change (%) | -5.26 | -4.27 | -0.02 | -4.24 |
| 7-day change (%) | -4.86 | -1.57 | -2.46 | -3.24 |
| 90-day change (%) | -40.48 | -38.09 | -28.71 | -38.50 |
| 365-day change (%) | -67.67 | -71.65 | -35.40 | -58.07 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume (shares) | 2 447 657 |
| BSE Daily Volume (BGN) | 5 204 939 |
| Avg Daily Turnover YTD (BGN) | 10 998 843 |
| Avg Daily Turnover 12 mo. (BGN) | 18 014 571 |
Most recent macro data
| Inflation (HICP, M/M September) | 0.9% |
| Inflation (HICP, cum. 2008) | 8.0% |
| LEONIA Reference Rate | 6.24% |
| SOFIBOR /3 months/ | 7.721% |
| GDP Growth (Y/Y H1 2008) | 7.1% |
| Unemployment (September 2008) | 5.8% |
exchange rates
| Current | Change | |
| BGN/USD | 1.44801 | 0.01254 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.3507 | -0.0118 |
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
Macroeconomic news and statistics
Unemployment decreases to 5.8% in September
The unemployment rate dropped to 5.8% in September 2008, 0.09% lower than August 2008 and 0.98% than September 2007, Labour Agency announced. The number of unemployed Bulgarians decresed to 214 692 or 3 611 lower than previous month.
Source: Investor.bg; FFBH
Financial sector
Bulgaria may guarantee interbank loans, cut required reserve ratio
Bulgaria may try to thaw its frozen interbank market by guaranteeing all loans lenders give each other. The guarantee should run for a year after changes to the deposit insurance act passed at first reading yesterday take effect.
An ordinance of BNB should lay down the segments and volumes to be covered by the state guarantee. Over 90% of the cash banks lend to each other in Bulgaria are overnight deposits. The government may use the fiscal reserve or the budget surplus to provide the guarantee, said budget and finances parliamentary commission chairman Rumen Ovcharov, one of the authors of the proposal.
Another possible step of preventing possible troubles in the banking sector was loosening the reserve requirements, said prime minister Sergei Stanishev. According to him, cutting the minimum reserves is just one of a string of possible measures, and any move will be coordinated with BNB and the Association of Banks in Bulgaria.
Source: Dnevnik
Financial sector
Fitch affirms Postbank’s rating at A-
Ratings has affirmed Postbank’s rating at ‘A-‘. The agency affirms Postbank’s negative outlook and short-term IDR 'F2', Individual 'C/D' and Support '1'. Postbank’s outlook was changed to negative in February 2008 together with the change of Bulgaria’s outlook.
In determining the current rating ofPostbank, Fitch’s analysts have taken into account the fact that in addition to its stable financial performance Postbank can rely on solid backing from its major shareholder EFG Eurobank Ergasias, whose rating remain steady at A/Stable. According to experts from the international rating agency, Postbank’s membership in the international group is yet another guarantee for its financial stability.
Source: Profit.bg
Metallurgy
Voestalpine puts off decision for new steel plant in Black Sea region
The Austrian company Voestalpine AG postponed its decision on where to build its EUR 5bn steel plant that it planned to locate in the Black Sea region, the company press service announced Thursday. Voestalpine was expected to declare in December 2009 which country it would select for its massive green field investment. Bulgaria and Romania were considered to be the main competitors to attract the large-scale investment but Turkey and the Ukraine also had their chances. The decision is put off because of the critical condition of the financial markets and the uncertainty about the development of the global economy. Voestalpine would continue to research its options, and will come up with a final decision for its new steel plant investment in 2009. The decision would also depend on the greenhouse gas emissions limitations that the European Parliament is expected to impose.
Source: Novinite.com
Media
Nova Televizia sale finalized
Modern Times Group (MTG), the second largest media group in Europe, announced Thursday that they have received all necessary approvals from Bulgarian authorities to close the deal for the purchase of 100% of the TV channel Nova Televizia.
MTG took over the channel effective on Thursday with full control of the entire Business of Nova Televizia.
One July 31, 2008, MTG announced that they have signed a contract to acquire 100% of the shares of the TV channel for a price EUR 620m from Antenna Bulgaria. Nova Televizia has been established in 1994 and owns 100% of the TV channel Nova Televizia, 100% of the cable TV channel Nova+ and 80% of the woman's magazine Eva.
According to data, Nova Televizia is the second most watched TV channel in Bulgaria. MTG already manages the cable Diema channels in the country through their control package of 50 % in Balkan Media Group Limited.
Source: Novinite.com
CORPORATE news
Albena AD [6AB]
Albena tries to attract more Bulgarians
Local resort operator Albena has launched attractive all-inclusive packages to bring in Bulgarian holidaymakers back from Greece and Turkey, said investors’ relations director Yovka Strashilova. The packages will cost EUR 28 a day for June and September, and EUR 40 for July and August if booked online.
Albena managed to compensate the sharp outflow of British and German tourists in the summer but the resort welcomed 5%-6% fewer guests in September, a traditionally busy Business period.
Albena also announced that due to high interest it will increase by 20% prices in its Gergana and Kaliakra hotels. Elsewhere prices will be raised by 1 or 2%.
Source: Dnevnik
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