market WRAP-UP
Liquid companies suffered the most last week as aggressive sales drove First Investment Bank (FIB) 18.6% WoW down to BGN 7.52 with weekly turnover of 305k shares and Chimimport (CHIM) 18.1% WoW down to BGN 8.38 with 275k shares weekly turnover. SOFIX decreased to 1 185 bps (-11.8% WoW) dropping below its 52 weeks low while BG40 lost 11.6% and closed at 338.71 bps. The absence of financial data and the negative influence coming from the foreign markets continued the sell pressure on BSE thus pushing the prices of most of the companies to their 12 months bottom. Now we believe that sell pressure on our domestic market will continue until stabilization of the foreign markets.
SOFIX (one month) (chart)
BG40 (one month) (chart)
| SOFIX | BG40 | |
| 1-wk change | -11.8% | -11.6% |
| 1-m change | -16.6% | -17.4% |
| 3-m change | -31.5% | -32.9% |
| 6-m change | -32.1% | -30.8% |
| Year-to-date | -31.8% | -34.4% |
| 12-m change | -6.3% | 38.8% |
| Period | Week 12 |
| Weekly volume (No of securities) | 16 534 079 |
| Weekly turnover (BGN) | 64 451 629 |
| Average weekly turnover YTD (BGN) | 74 393 464 |
| Kremikovtsi [KREM] | 3.4% |
| Sparky Eltos [ELTOS] | 0.4% |
| Bulgartabac Holding [BTH] | 0.1% |
| First Investment Bank [FIB] | -18.6% |
| Chimimport [CHIM] | -18.1% |
| Doverie-Obedinen Holding [DOVUHL] | -17.7% |
news HIGHLIGHTS
- 2007 GDP preliminary assessment was €28.9bn, with real growth at 6.2%.
- Current account gap reached €725.6m in January, up 15.4% MoM and up 13.4% YoY, accounting already for 2.2% of the projected GDP for 2008. FDI in Jan 2008 doubled YoY to €242m, covering only 33% of the deficit.
- FDI figures for 2006 and 2007 were revised significantly up to €6bn and €6.1bn repectively, from the previous estimates of €4.4bn and €5.7bn.
- 2007 unemployment rate was 6.9%, down 2.1% YoY. In Feb, unemployment w as 7.26%, down 0.12% MoM and down 2.22% YoY.
- KBC increased its stake in Economic and Investment Bank [BRIB] to over 76% after the tender offer.
- Sopharma [SFARM] received anti-trust approval for the acquisition of a controlling stake in Serbian peer Ivancic&Sons.
- DOM-Zdrave, an insurer,would offer 470k new shares with €0.51 par value and €1.5 issue value each.
news IN THE SPOTLIGHT
Monbat [MONBAT]
2007 audited unconsolidated profit of BGN 17.4m; 2008-2009 planned investments total BGN 64.2m
Monbat presented its annual unconsolidated report, which does not show any changes from the preliminary figures. 2007 audited unconsolidated revenues stood at BGN 144m, 83% YoY increase. EBITDA was reported at BGN 24.9m in 2007, 70% YoY growth. Net profit was BGN 17.4m compared to BGN 7.6m in 2006.
Monbat has earmarked BGN 64.2m to increase the production capacity and the competitiveness of its Montana and Dobrich plants and to complete the batteries recycling facilities in Serbia and Romania. Over 61% of the amount will be spent in 2008 and another BGN 25m in 2009. Up to BGN 16m of the necessary funding will be borrowed from banks. The remaining BGN 48.2m will come from company funds, lease financing and a possible bond issuance. The company management plans no capital raises in 2008 or 2009, unless a rival company in South- Eastern Europe is acquired. Source: FFBH; Dnevnik
Bulgarian Real Estate Fund [BREF]
A €17.5m sale of office building project BREF signed a preliminary sale agreement for the office and commercial building located in G. M. Dimitrov Blvd., which is still under construction. The building is planned to have 10 floors with offices and a 2-level underground parking area, with a total built-up area of 12 988 sq. m. The sale price was €17.5m, or €1347 per sq. m., paid by Bridgecorp Seven, a subsidiary of Bridgecorp AD. The sale will be paid in installments based on the level of completion. The target date for the conclusion of the project is the beginning of next year. Source: FFBH
Bulgartabac Holding [BTH]
Factories in Plovdiv and Stara Zagora to be privatized on BSE, strategic investors needed for the plants in Sofia and Blagoevgrad
The cigarette factories in Plovdiv and Stara Zagora are about to be privatized through BSE. Their workers will receive severance payment of 1.8 monthly salaries for each year in employment, said the Minister of Economy and Energetics Petar Dimitrov.
The two other Bulgartabac companies – in Sofia and Blagoevgrad, are still looking for strategic investors.
Meetings with the four big players in the sectorhave been arranged. Source: Investor.bg; Profit.bg
FIXED INCOME AND MACRO DATA
NB: quotes are only indicative
| Type | Coupon | Maturity | Currency | Yield (%) | Spread Over Treasuries (bps) | Bid (% of par) | Offer (% of par) |
| Eurobonds | 7.50% | Jan-13 | EUR | NA | NA | NA | NA |
| Eurobonds | 8.25% | Jan-15 | USD | 5.10 | 225 | 117.25 | 118.00 |
| BGN/EUR exchange rate | 1.95583 |
| Inflation (MoM February) | 1.1% |
| Inflation (cumulative 2008) | 2.5% |
| Base interest rate | 4.83% |
| LEONIA reference rate | 4.85% |
| GDP Growth (Y/Y 2007) | 6.2% |
| Unemployment (Feb 2008) | 7.26% |
| Public Foreign Debt/GDP (end-Dec) | 15.6% |
| Foreign Direct Investment Jan '08 (EUR) | 242m |
| Maturity | Rate |
| Overnight (ON) | 4.97 |
| One week (SW) | 5.31 |
| 1-month | 6.38 |
| 3-month | 6.68 |
| 12-month | 7.58 |
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Weekly BSE 21 03 2008.pdf, 81 Kb
