Headlines
- Consolidated sales of Etropal Down 13% in 2009, Earnings Remain Flat
- EFG Eurobank To Act as market Maker for Enemona
- Bulgaria’s Exports Rise by 13% in January
- Moody's Assigns Negative Outlook to Bulgarian Banking System
- New Car sales Down 46.6% in Jan-Feb
Overview
Sofia Stocks Edge Down in Slow Trading
Bulgarian stock indices extended losses in sluggish trading on Tuesday. Stocks were chopping around in tight intraday trading ranges and low volumes. Selling pressure intensified after midday, pulling the SOFIX index down by 0.65%. BGREIT was a hair away with a loss of 0.64%. The broad BG40 performed better and closed at 117.42, down by 0.18%. The total return BGTR30 stepped back 0.10%.
Doverie United Holding [5DOV] was the day’s top riser. It soared 4.75% to BGN 3.31 per share in a turnover of BGN 27.0 th. The conglomerate turned to a consolidated loss of BGN 1.842 mln in 2009 from a net profit of BGN 2.408 mln in 2008.
Zarneni Hrani Bulgaria [T43] was also among the top risers. The conglomerate, which consolidates the agricultural Business of Chimimport [6C4], added 1.32% to BGN 0.615 per share. Volumes, however, were very low. Furthermore, warrants of Enemona [ZNOA], which started trading on the Bulgarian Stock exchange on March 2, added 1.18% to BGN 0.86 apiece.
On the negative side, M+S Hydraulic [5MH] slipped 3.67% to BGN 5.20 per share in light turnover. Neochim [3NB; -2.91%] and Moststroy [5MY; -2.44%] also registered thick losses in thin volumes. In a relatively more active trading, Holding Roads [6H2] slipped 1.8% and Bulgarian Real Estate Fund [5BU] dropped 1.64%.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 421.79 | -0.65% | -1.28% |
| BG 40 | 117.42 | -0.18% | 0.22% |
| BG REIT | 43.77 | -0.64% | -8.83% |
| BGTR 30 | 327.54 | -0.10% | -2.18% |
| Shares Turnover (BGN th) | 559.86 |
| Bonds Turnover (BGN thnds) | 1 678.17 |
| OTC market Turnover (BGN th) | 26.54 |
| Total Daily Turnover (BNG th) | 2 371.09 |
| market Capitalisation (BGN mln) | 11 108.10 |
| market Capitalisation/GDP | 17% |
| Top Gainers | Ticker | Change |
| Doverie United Holding AD | 5DOV | + 4.75% |
| EMKA AD-Sevlievo | 57E | + 1.54% |
| Zarneni Hrani Bulgaria AD | T43 | + 1.32% |
| Top Losers | Ticker | Change |
| Balkan AD-Lovech | 4BN | -11.20% |
| M+S Hydraulic AD-Kazanlak | 5MH | -3.67% |
| Etropal AD-Etropole | 5EO | -2.94% |
* Gainers are among shares with turnover above BGN 10 th and losers are among shares with turnover above BGN 4 th;
Trends
SOFIX (chart)
| P/E, ttm | Value | Daily Chng | YTD Chng | Turnover (BGN thnds) |
| - | 421.79 | -0.65% | -1.28% | 312 |
Corporate news
Consolidated sales of Etropal Down 13% in 2009, Earnings Remain Flat
Consolidated annual sales of Etropal fell by 13% y-o-y to BGN 13.1 mln, data from the company’s consolidated financial statement showed. Meanwhile, operating expenses were cut by 10.8% to BGN 12.603 mln. The bottom line remained almost flat at BGN 296 th (vs. BGN 297 th in 2008) as net financial expenses declined by 47% y-o-y.
EFG Eurobank To Act as market Maker for Enemona
EFG Eurobank received regulatory approval to act as a market maker in respect of ordinary shares issued by Enemona [E4A], the Bulgarian Stock exchange said in a statement. The term of the contract between EFG Eurobank and Enemona is one year, effective from March 12, 2010.
Economy and Politics
Bulgaria’s Exports Rise by 13% in January
Bulgaria’s exports rose by a preliminary 13.1% y-o-y to BGN 1.798 bn (FOB prices) in January, the Finance Ministry said. The growth was driven by a 58% rise in exports of fuels and oils and 56% higher exports of raw materials. Moreover, exports of machinery jumped by 32% y-o-y in the period.
Moody's Assigns Negative Outlook to Bulgarian Banking System
Moody's Investors Service assigned a negative outlook to the Bulgarian banking system, reflecting the adverse impact of the domestic economic recession on the credit quality and net profits of the country's banks. “From the end of 2008, credit activity started to slow down, largely as a result of sluggish credit demand, more cautious lending practices adopted by credit institutions and tighter financing conditions both domestically and in the international markets," said Elena Panayiotou, author of the report. The sharp deterioration in the Bulgarian economy fed through into the banking system in 2009 and Moody's anticipates that the negative trends evidenced in the banks' reported asset quality metrics and bottom-line profitability in 2009 will continue over the next 12 to 18 months. "We recognize that the banking system remains adequately profitable and has strong capital buffers that were built up during the good macroeconomic conditions in light of the prudent regulation adopted by the Bulgarian National Bank," Panayiotou explained. Nevertheless, the system's non-performing loans grew at a very rapid pace during 2009, resulting in high provisioning expenses and reduced net profitability for most banks. Although the foreign parent banks are expected to maintain their presence in the Bulgarian market, any incremental funding support they provide is likely to be limited in 2010, given the difficulties faced in their home markets, Moody's said. "As regards profitability, on the one hand, we expect revenue generation to be constrained by low growth in Business volumes, despite good interest rate margins, while net profitability will continue to be affected by elevated provisioning expenses. On the other hand, we expect managements' efforts to rationalize the banks' operations and rein in costs to partly alleviate the pressure on profits," said Panayiotou. Going forward, the rating agency also cautions that the modest recovery in the economy in 2010 and expectations of a continued rise in unemployment levels suggest that delinquencies will continue to grow, albeit at a slower pace.
New Car sales Down 46.6% in Jan-Feb
Total number of new cars sold in Bulgaria slumped by 46.6% y-o-y to 2,478 in the first two months of the year, data of the Association of Car Manufacturers and Their Authorized Representatives for Bulgaria showed. Last year, new car sales sank by 52.2% y-o-y to a total of 25,705. Peugeot was the market leader in the first two months of 2010, with a market share of 10.7%, followed by Ford with 9.6% and Dacia with 8.8%. Meanwhile, new truck sales dropped by 60% y-o-y to 78.
BG40 Stocks (table)
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