Headlines
- Net Income of Trace Group Sharply Down
- Railway Infrastructure with a Net Loss of BGN 3.5 mln
- Euroins to Raise Capital
- Net Income of Mekom at BGN 4.8 mln
- Bulgaria's Public Debt Down 2.3% y-o-y
- Net assets of the Banks Down 1.1% in October
Overview
Stocks Edge Up, Volume Falls
Stocks moved up on Monday but the volume fell to below BGN 1.0 mln, indicating that interest in buying, although existent, is far from strong. The SOFIX index gained as much as 2.77% and the BG40 was up by 1.94% before noon but both indices lost momentum as the session moved towards an end. The blue-chip index ended 0.65% higher at 365.62 and the BG40 index added 0.49% to 109.13.
The three most liquid stocks on Monday - Chimimport [6C4; +2.36%] and Central Cooperative Bank AD [4CF; +7.14%] and Zarneni Hrani Bulgaria [T43; +8.8%], both part of the Chimimport group, ended higher. Chimimport added 2.36% to BGN 2.17 in a volume of BGN 99,686, while Central Cooperative Bank rose 7.14% to BGN 1.2 in a volume of BGN 108,548. Zarneni Hrani Bulgaria closed at BGN 0.82, up by 8.8% with shares worth BGN 81,646 changing hands. Chimimport on Saturday reported a 5.0% y-o-y increase in its ninemonth net income to BGN 93.58 mln.
Monday's losers included Petrol AD [5PET; -6.78%] and Monbat AD [5PET; -5.69%]. Petrol, which has surged by 105.22% since last year's end, was down by 6.78% to BGN 11 in a volume of BGN 5,863. Monbat lost 5.69% to BGN 4.42 with shares worth BGN 11,734 changing hands.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 365.62 | 0.65% | -79.32% |
| BG 40 | 109.13 | 0.49% | -78.93% |
| BG REIT | 48.06 | 1.44% | -53.45% |
| BGTR 30 | 283.39 | 0.91% | -74.18% |
| Shares Turnover (BGN thnds) | 956.45 |
| Bonds Turnover (BGN thnds) | 0.00 |
| OTC market Turnover (BGN thnds) | 169.78 |
| market Capitalisation (BGN mln) | 12 298.87 |
| market Capitalisation/GDP | 19% |
| Top Gainers | Ticker | Change |
| Zarneni Hrani Bulgaria | T43 | + 8.80% |
| Central Cooperative Bank AD | 4CF | + 7.14% |
| Kaolin AD | 6K1 | + 5.71% |
| Top Losers | Ticker | Change |
| Petrol AD | 5PET | -6.78% |
| Monbat AD | 5MB | -5.69% |
| Industrial Holding Bulgaria | 4ID | -5.50% |
* Gainers: Among shares with turnover above BGN thnd 10;
Losers: Among shares with turnover above BGN thnd 4;
Trends
SOFIX (chart)
| P/E, ttm | Value | Daily Chng | YTD Chng | Turnover (BGN thnds) |
| 5.09 | 365.62 | 0.65% | -79.32% | 613 |
Corporate news
Net Income of Trace Group Sharply Down
Trace Group Hold [T57] posted a sharp drop in its 9M consolidated net profit BGN 0.108 mln, vs. BGN 5.038 mln a year earlier, as costs rose faster than revenues. Nine month sales advanced by 32.7% y-o-y to BGN 74.8 mln, while operating expenses jumped by 46.3% to BGN 73.9 mln. Surging financial expenses, up by more than 53%, also contributed to the poor performance oh the road construction company.
Industrial Holding Bulgaria Raises 9M Net Profit by 25%
Net consolidated sales of Industrial Holding Bulgaria [4ID] dropped by 27% y-oy to BGN 23.4 mln as of the end of September. Operating expenses however decreased more rapidly, by 30%, thus operational profitability improved, with EBIT margin up to 13.3%, vs. 11.74% a year earlier. Financial and extraordinary revenues supported the bottom line thus the net profit for the group increased by 9% to BGN 13.6 mln. Excluding minoritary interest, net profit for the company accounted for BGN 12.2 mln, up by 25%.
Railway Infrastructure with a Net Loss of BGN 3.5 mln
Railway Infrastructure-Holding company Plc. [RA8] announced a 9M net consolidated loss of BGN 3.5 mln, vs. a net profit of BGN 7 mln. projected for the year. Net nine-month consolidated revenues accounted for BGN 11.2 mln, as little as 22% of the projected for the entire year. Total revenues dropped by 30% as compared to the first nine months of 2007, when the company reported “Other financial income” of the amount of BGN 11.357 mln. Railway Infrastructure went public through an ipo in June at an initial price of BGN 5 per share. Trading with the shares of the railway constructor started on Friday, but it did not attract investors’ interest as only two shares changed hands at BGN 4.44 each.
Euroins to Raise Capital
Shareholders of Euroins [5IC] voted on a proposal for capital hike on an extraordinary shareholders’ meeting held on November 28. The capital of the insurer will be increased with up to 2.499 million new shares at a subscription price of BGN 4 per share. Four old shares give the right for subscription of one new share. The major shareholder of Euroins – Euroins Insurance Group, intends to use all its rights. Shareholders also decided that the management will have the right to decide on capital hikes up to BGN 100 mln.
Net Income of Mekom at BGN 4.8 mln
Net consolidated sales of meat producer Mekom accounted for BGN 54.2 mln, vs. BGN 65.125 mln for the entire 2007. Mekom reported a 9M consolidated net income of BGN 4.76 mln, vs. BGN 4.696 mln for the entire 2007. The company has not released nine-month figures for 2007.
Economy and Politics
Bulgaria's Public Debt Down 2.3% y-o-y
Bulgaria's public debt totalled a EUR 5 599.3 bn at the end of October, down 2.3% on the year, preliminary data of the Finance Ministry showed on Monday. Total public debt however increased by 3.7% from the end of September when it was EUR 5 399.8 bn. Total public debt as percent of GDP decreased to 17.7% from 21.9% at the end of October 2007, but increased as compared to the end of September 2008, when it was 17.1%. Foreign debt accounted for EUR 4 029.3 bn, down 2.5% y-o-y. As compared to the end of September 2008, foreign debt surged by 4.7%.
Net assets of the Banks Down 1.1% in October
Net assets of Bulgarian Banks rose by 28.9% y-o-y to BGN 68.6 bn as of the end of October but fell by 1.1% as compared to the end of September, 2008, BNB data showed. The drop is mainly in cash and securities items. Gross loans advanced by 1% m-o-m to BGN 56.4 bn. The cumulative net income of the banks for the first ten months of the year accounted for BGN 1.22 bn, up by 26.2% on the year.
Upcoming Events
Holding Varna [5V2]
3.12.2008: Last date for subscription of shares from the capital hike
BG40 Stocks (table)
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Copyright: 2006 Karoll AD. All rights reserved. For further Information please contact Karoll, 57 Hristo Botev Str, 1303 Sofia, Bulgaria |Tel. +359 2 981 13 81, fax: +359 2 986 34 66, e-mail: research@karoll.net, web site: http://www.karoll.net
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Newsletter Daily 2008.12.01.pdf, 282 Kb
