market WRAP-UP
For a second consecutive trading day indices slightly moved down. SOFIX lost 1.32% to 996.26 bps, BG40 closed at 245.02 bps (-0.40%), BGTR30 lost (-0.70%) to 649.7 bps. Only BG REIT survived on the positive side, fixing 86.01 bps (+1.06%). The main down pressure come from Bulgarian-American credit bank (5BN, BGN 56.0, -4.42%) and Sopharma (3JR, BGN 4.02,-3.83%). Large volume was registered in Monbat (5MB, BGN 12, +1.61) where more than 138k changed hands. Vouchers moved in opposite directions as GKZ advanced 0.80% to BGN 0.38, KZ moved 0.78% down to BGN 0.38 and PKB lost 2.56% to BGN 0.38.
| Sofix | BG 40 | BGREIT | BGTR30 | |
| Value | 996.26 | 245.02 | 86.01 | 649.70 |
| 1-day change (%) | -1.32 | -0.40 | 1.06 | -0.70 |
| 7-day change (%) | -2.04 | -2.33 | -0.09 | -1.33 |
| 90-day change (%) | -19.34 | -28.34 | -10.56 | -21.79 |
| 365-day change (%) | -37.95 | -42.49 | -13.99 | -35.03 |
Note: BG REIT and BG TR30 started 31 August 2007
| BSE Daily Volume | 1 106 603 |
| BSE Daily Turnover | 4 211 915 |
| Average Daily Turnover YTD | 11 849 765 |
| Average Daily Turnover 12 months | 19 809 983 |
Most recent macro data
| Inflation (HICP, M/M July) | 1.4% |
| Inflation (HICP, cum. 2008) | 7.2% |
| LEONIA Reference Rate | 5.21% |
| SOFIBOR /3 months/ | 7.313% |
| GDP Growth (Y/Y Q2 2008 preliminary) | 6.3% |
| Unemployment (July 2008) | 5.96% |
exchange rates
| Current | Change | |
| BGN/USD | 1.34736 | 0.00967 |
| BGN/EUR | 1.95583 | Fixed |
| EUR/USD | 1.4516 | -0.01049 |
DAILY TRADING (selected stocks)
All figures in BGN (BGN/EUR rate fixed at 1.95583)
Compensatory Instruments (table)
ECONOMY AND POLITICS
Real estate
Bulgaria Boasts Highest Real Estate Price Growth Globally in Q2
Bulgaria retained its number one spot in the Knight Frank Global House Price index with a 32.3% YoY growth in real estate property prices in the second quarter of 2008. Real estate property prices in the country jumped 27.1% YoY in the first quarter of the year and have now risen by 68% over the past two years. Admittedly this occurred from a low base, but demand from international investors and domestic economic growth remains strong, although there are fears of oversupply, particularly in the resort locations.
Global house price inflation continues to slow, with annual growth standing at 4.8% in the second quarter of 2008, down from 6.1% in the previous quarter, Knight Frank data show. Prices are now falling in almost half the markets listed in the Knight Frank Global House Price index. Nevertheless growth rates in double figures are still being recorded in eight markets - Bulgaria, Slovakia, Russia, the Czech Republic, Hong Kong, Singapore, Cyprus and Colombia.
The economies of central and south-eastern Europe appear to be the strongest performers, while northern Europe (including the Baltic States), together with the United States, are suffering the most.
Source: Profit.bg
CORPORATE news
Moststroy AD [5MY]
Moststroy records loss in H1 2008
Moststroy consolidated sales moved down by 31.8% YoY to BGN 9.8m. EBITDA margin however improved from 8% in H1 2007 to 9.8% in H1 2008.
Moststroy posted consolidated loss in the amount of BGN 256k in H1 2008, according to the company's report. Last year the company ended H1 with a loss of BGN 364k.
Source: Profit.bg; FFBH
FairPlay Properties ADSIC [6F3]
FairPlay Properties REIT announces BGN 40.3m sales in Jan-Aug 2008
FairPlay Properties REIT signed in August new contracts for the sale of 47 apartments for a total of BGN 14.2m (VAT excluded). The total built-up area of the apartments amounted to 13.6k sq. m.
The total number of apartments sold since the start of the year has reached 178, exceeding by 22% the preliminary estimates, the company said. Total sales in Jah-August 2008 stood at BGN 40.3m.
Source: Profit.bg; FFBH
Chimimport AD [6C4]
Chimimport’s net consolidated profit up 8% YoY in H1 on booked negative goodwill
Chimimport reported non-financial revenues of BGN 308m, up 108% YoY, with two-fold increase in sales registered in both the industrial and the transport segments (BGN 108m and BGN 195m, respectively, after intra-group eliminations). The top-line growth in the industrial segment was influenced somewhat by the restructuring of the wheat & storage Business of the group and the establishment of Zarneni Hrani in late 2007. On a stand-alone basis Zurneni Hrani Bulgaria booked revenues of BGN 80m for H1 08, contributing 58% to the segment’s revenues before eliminations.
The transport sector was majorly affected by the consolidation of Bulgaria Air after Q4 ’07.
The profitability of the above segments declined, particularly of the transport Business – profit before tax to operating revenues (PBT/OR) stood at 5% for the industrial operations (vs 6% a year ago), and -4% for the transport activities (vs. 19% a year ago). It should be noted that the interest expenses of the industry and transport subsidiaries increased significantly, with the industrial sector paying 79% more in H1 08, or BGN 2.3m, and the transport sector’s interest costs increasing 145% YoY, to BGN 5.4m.
The Group reported significantly higher income from insurance through its subsidiary Armeetz (BGN 137m, up 59% YoY), but the profit was almost entirely eliminated in the consolidation, and the net income after eliminations decreased almost 10x YoY to BGN 0.4m.
The net interest income of the financial segment, where Central Co-operative Bank is the largest operating unit, rose by 63% YoY to BGN 40m. The overall profit for the segment (before eliminations and minority interest) was BGN 25m, with BGN 24m of that coming from ‘other financial income’.
CCB’s individual financial report for H1 08 showed a net interest income of BGN 31m, and a net profit of BGN 7m, down 26% YoY.
This time the Holding’s investment activities provided more than two times lower net profit compared to the first six months of the previous year (BGN 27.5m vs BGN 61.5 in H1 07), as expected, considering the negative trend on the securities market in the period under review.
Additionally, the holding booked a profit on ‘negative goodwill’ recognition of BGN 29m (BGN 6.6m of which on the acquisition of the Macedonian Sileks Bank). This all resulted in a rising YoY net profit of BGN 65m, up 8% on an annul basis.
At end-June 2008 Chimimport’s total consolidated assets amounted to BGN 3bn, 59% higher than their value at end-June 2007 and up 9% YtD.
ROaE (TTM) was 21% at end-June 2008, vs 29% at end-December 2007 and 36% at end-June 2007.
Source: FFBH
*****
To view the original document, please click on the link below:
http://reports.aiidatapro.com/BBB/FFBH/BMU03-09-08.pdf
*****
Copyright: 2006 First Financial Brokerage House. All rights reserved.For further Information please contact
FFBH, 2 Enos Str., 1408 Sofia, Bulgaria, Phone: +359 2 810 64 21, fax: +359 2 810 64 01, e-mail: ffbh@ffbh.bg, web site: http://www.ffbh.bg
*****
AII Data Processing does not endorse in any way, the views, opinions or recommendations expressed above. The use of the Information is subject to the terms and conditions as published by the original source, which you have to read and accept in full prior to the execution of any actions taken in reliance on Information contained herein.
 | SeeNews SeeNews is a business and financial news and information provider which brings its visitors and customers access to detailed coverage on the fast-growing companies, economies and markets of ten Southeast European nations. |
Search for: south-eastern |
Search for: news |
Search for: market |
Search for: assets |
Search for: acquisition |
Search for: industry |
Search for: index |
Search for: indices |
Search for: exchange |
Search for: report |
Search for: credit |
Search for: sales |
Search for: Bulgaria |
Search for: economies |
 | Research & Profiles SeeNews – Research & Profiles enables an access to over 4,000 comprehensive company and industry profiles and researches from 10 Southeast European countries. |
 | Business SEE TOP 100 - the ranking of the largest companies in Southeast Europe (SEE). SEE TOP 100 is the only ranking of the biggest companies and banks in SEE and a comprehensive, in-depth guide to the economies of the emerging markets of SEE. |
Terms & ConditionsPrivacyCopyrightPublished by All Data Processing. All rights reserved. Created by Ladger.
BMU03-09-08.pdf, 71 Kb
