Headlines
Fitch Downgrades Five Bulgarian Banks and Petrol
Fitch Downgrades Bulgaria's Ratings
Unemployment Down to 6.42%
| Value | Daily Chng | YTD Chng | |
| SOFIX | 467.83 | -0.89% | -73.54% |
| BG 40 | 142.77 | 1.57% | -72.44% |
| BG REIT | 53.45 | -0.17% | -48.23% |
| BGTR 30 | 354.72 | 0.00% | -67.68% |
| Shares Turnover (BGN thnds) | 1 365.98 |
| Bonds Turnover (BGN thnds) | 947.37 |
| market Capitalisation (BGN mln) | 13 196.81 |
| market Capitalisation/GDP | 21% |
| Top Gainers | Ticker | Change |
| Oil & Gas Explor. & Prod. | 4O1 | + 16.50% |
| FairPlay Properties REIT | 6F3 | + 8.72% |
| Doverie Obedinen Holding AD | 5DOV | + 4.05% |
| Top Losers | Ticker | Change |
| Holding Varna AD | 5V2 | -14.92% |
| TK - Hold AD | T24 | -9.05% |
| Neochim AD | 3NB | -2.91% |
* Gainers: Among shares with turnover above BGN thnd 10;
Losers: Among shares with turnover above BGN thnd 4;
Overview
Volume Dwindles in a Choppy Session
Bulgarian share prices rose in early trade on Monday, as most of the European markets were moving higher on a nearly $600-billion Chinese economic stimulus plan announced on Sunday. The blue-chip index SOFIX had climbed 2.39% till 09:58 a.m. The broader BG40 was up 1.48% by that time. Moods however reversed during the session and both indices slipped into negative territory, with SOFIX closing at 465.95, down 0.4%, and BG40 sliding to 142.40, down 0.26%. In general, investors stood away from trading and liquidity remained low.
Some of the real estate funds were among the few actively traded companies today. Top three most actively traded REITs generated 50% of today’s turnover, totaling BGN 1.37 mln. One of the gainers for the day - FairPlay Properties REIT [6F3; +8.72%], was also the most liquid company. More than 401 thousands of its shares changed hands at an average price of BGN 0.671 per share. Advance Terrafund REIT [6A6; +0.00%] also enjoyed investors’ interest but its price remained flat. 181 thousand shares of the land investing fund were exchanged at an average price of BGN 1.10 per share. The average price of the third most actively traded issue - Forucom REIT – Haskovo [6F4; +0.00%], also remained unchanged at BGN 1.147, with 101 thousand shares exchanged within the session.
Corporate news
Fitch Downgrades Five Bulgarian Banks and Petrol
Fitch Ratings has downgraded five Bulgarian banks today following the downgrade of Bulgaria's sovereign ratings. The Outlooks on four of the five banks are now Stable following the rating action.
Allianz Bank Bulgaria AD Long-term IDR was downgraded to 'BBB+' from 'A-' (A minus), with stable outlook. Support rating was downgraded to '2' from '1', short-term foreign currency IDR was affirmed at 'F2' and individual was affirmed at 'D'.
Economic and Investment Bank AD [5EC] Long-term IDR was downgraded to 'BBB+' from 'A-' (A minus) with stable outlook. Support rating was downgraded to '2' from '1', short-term foreign currency IDR was affirmed at 'F2' and iIndividual was affirmed at 'D'.
Eurobank EFG Bulgaria AD Long-term IDR was downgraded to 'BBB+' from 'A-' (A minus) with stable outlook. Support rating was downgraded to '2' from '1', short-term foreign currency IDR was affirmed at 'F2' and Individual affirmed at 'C/D'.
Societe Generale Expressbank AD Long-term IDR was downgraded to 'BBB+' from 'A-' (A minus) with stable outlook. Support rating was downgraded to '2' from '1', short-term foreign currency IDR was affirmed at 'F2' and individual was affirmed at 'D'.
UniCredit Bulbank support rating was downgraded to '2' from '1'.
Fitch also downgraded the IDR of fuel retailer Petrol [5PET] and the senior unsecured rating of its EUR 100 mln notes due in 2011 to 'CCC' from 'B-' on concerns about increased financial leverage caused by a sizeable share repurchase, corporate governance, diminished earnings due to an asset disposal of an important part of the petrol station network, and large losses on derivatives transactions.
Economy and Politics
Fitch Downgrades Bulgaria's Ratings
Fitch Ratings has downgraded Bulgaria's Long-term foreign currency Issuer Default rating to 'BBB-' Stable Outlook from 'BBB' Negative Outlook and Longterm local currency IDR was reduced to 'BBB' Stable Outlook from 'BBB+' Negative Outlook. The downgrade reflects the increasing risk of a recession in response to a marked decline in external financing flows, which will necessitate a sharp contraction in domestic demand to rein in the current account deficit, the agency said. However, given the strong sovereign balance sheet - large fiscal reserves mean that government net financial liabilities are virtually zero - and the broad-based commitment to the currency board arrangement (CBA), Fitch believes the risk of recession broadening into a deeper economic and financial crisis over the medium-term is limited and consistent with a Stable Outlook. Fitch Ratings has also downgraded the sovereign ratings of Kazakhstan and Romania. Emerging Europe is the most vulnerable Emerging market region to the deterioration in the global financial and economic environment owing to the presence of large current account deficits and relatively high levels of short-term external debt, the agency added.
Unemployment Down to 6.42%
The average monthly unemployment rate fell to 6.42% for the nine months ending September 30, Ministry of Labour and Social Policy said on Monday. The average monthly unemployment rate was 8.08% in the same period of 2007.
Upcoming Events
Euroins [5IC]
12.11.2008: Last day for purchase of shares giving voting rights an the General Meetings of Shareholders scheduled for November 28, at 10:00 a.m. in Sofia.
BG40 Stocks (table)
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Newsletter Daily 2008.11.10.pdf, 54 Kb
