Headlines
- Monbat To Launch Fourth share buyback Procedure
- Bulgaria Expected to Sign N-Plant deal with RWE by Year's End
- World Bank Lends Bulgaria EUR 141.7 mln to Back Reforms
- Bulgarian Employers Say Unemployment Rate Could Surpass 7%
Overview
Shares Totally Blown Away
SOFIX and BG40 More Than 10% Down Amid Panic Sell-Off
Bulgaria's capital market survived one if the worst sessions in its history, with most of the stocks posting record-breaking losses. The benchmark SOFIX tumbled by 10.74% to a 63-month low, posting its largest one-day percentage loss since 2001. The wider BG40 went into a freefall to below its initial value of 100 from February 1st, 2005, when it was launched. The index penetrated this level without meeting any obstacles and closed at 96.72. It almost touched its all-time low of 91.99, reached on February 4, 2005, with 17 of its constituents posting double-digit losses. The volume was relatively high – 519 773 shares worth some BGN 3.3 mln were traded today, excluding a single transaction of 2.7 mln shares of Petrol worth BGN 24.5 mln.
A whole pleiad of stocks competed in today’s “Top Loser” hell-game. Eventually, the awards went to the low-liquid Universal Properties REIT [45U; -51.47%], Velpa-91 ADStrazhitsa [4V9; -49.04%] and Svilosa AD-Svishtov [3MZ; -32.43%]. Some of the liquid shares like Industrial Holding Bulgaria [4ID; -26.04%], Bulgarian American credit Bank [5BN; -22.58%] and First Investment Bank [5F4; -15.44%] were also saddled with heavy losses. Among the few gainers were the rights for the capital increase of Holding Varna [5V2B; +288.89%] – 519 773 of them were exchanged on today’s auction at an average price of BGN 0.07, vs. 0.018 on the last trading day.
Petrol was the most liquid issue for a second day in a row after 2.7 mln of its shares (2.47% of SH’s capital) were exchanged yesterday in a single trade at an average price of BGN 9.1 per share. Another 2.47% of the capital changed hands today at the same price but the counterparties remained undisclosed.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 322.60 | -10.74% | -81.75% |
| BG 40 | 96.72 | -10.52% | -81.33% |
| BG REIT | 48.82 | -3.59% | -52.71% |
| BGTR 30 | 257.01 | -8.64% | -76.58% |
| Shares Turnover (BGN thnds) | 27 924.30 |
| Bonds Turnover (BGN thnds) | 52.20 |
| OTC market Turnover (BGN thnds) | 1 674.59 |
| market Capitalisation (BGN mln) | 11 347.39 |
| market Capitalisation/GDP | 18% |
| Top Gainers | Ticker | Change |
| Kapitan Dyado Nikola AD | 3KN | + 5.26% |
| Bulgarian Real Estate Fund | 5BU | + 2.79% |
| CB Central Cooperative Bank | 4CF | + 2.50% |
| Top Losers | Ticker | Change |
| Universal Properties REIT | 45U | -51.47% |
| Velpa-91 AD-Strazhitsa | 4V9 | -49.04% |
| Svilosa AD-Svishtov | 3MZ | -32.43% |
* 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) |
| 4.39 | 322.60 | -10.74% | -81.75% | 1 601 |
Corporate news
Monbat To Launch Fourth share buyback Procedure
Monbat [5MB] said it plans to launch a new share buyback procedure, its fourth, in an attempt to support the company’s stock amid severe falls on the local market. The company plans to buy back up to 0.57 % of its share capital, or up to 223,000 shares, at a minimum price of BGN 4.0 and a maximum price of BGN 7.0 per share, it said. The buyout will be launched on November 18 and will continue for up to 180 days. Monbat’s management Board may change the minimum and maximum price in the buyout depending on the market conditions, the company said.
Economy and Politics
Bulgaria Expected to Sign N-Plant deal with RWE by Year's End
Bulgaria is expected to sign by the end of the year a joint venture agreement with Germany’s RWE, according to which the company will become a strategic investor in the country’s planned second nuclear power plant project, Klasa business daily reported on Tuesday. Lyubomir Velkov, CEO of the state-run power utility NEK, told the newspaper that the two parties are now discussing the technical details. The country chose RWE as strategic investor for 49% of the future nuclear power plant in October. NEK will own 51% of the EUR 4.0 bn plant to be built in the town of Belene.
World Bank Lends Bulgaria EUR 141.7 mln to Back Reforms
The World Bank has lent Bulgaria EUR 141.7 mln to back reforms in healthcare, education and social protection, media reportred. The two parties on Tuesday signed two loan agreements - Development Policy Loan (DPL) 2, for EUR 101.7 mln, and a EUR 40 mln loan extended under the Social Inclusion Project (SIP) for Bulgaria. The two loans shall be paid back within 17 years ahd have a five-year grace period. The DPL supports the adoption and implementation of policies aimed at increasing employment and improving quality of education, while the SIP is aimed at promoting social inclusion and is targeting low-income families.
Bulgarian Employers Say Unemployment Rate Could Surpass 7%
Bulgarian employers expect the unemployment rate in the country to go higher than the 7% forecast by labour minister Emilia Maslarova if the government doesn’t take measures to stimulate business activity, Evgenii Ivanov, executive director of the Confederation of the Employers and Industrialists in Bulgaria (CEIBG), said. Cutting social contributions paid by employers and stimulating bank lending are part of the measures, proposed by CEIBG. Bulgaria’s jobless rate stood at 5.8% at the end of September, down from 6.78% in September 2007. However, large employers such as Stomana industry, Intertrust, Agropolychim and Chugunoleene, announced in the past days significant reductions in their labour force because of the unfavourable situation on global commodity markets.
Upcoming Events
Toplivo AD [3TV]
19.11.2008: Last day for buying shares in Toplivo AD [3TV], giving the right to vote at the company’s shareholders’ meeting scheduled for December 6.
BG40 Stocks (table)
*****
To view the original document, please click on the link below:
http://reports.aiidatapro.com/BBB/Karoll/Newsletter_Daily_2008.11.18.pdf
*****
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
*****
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: news |
Search for: deal |
Search for: market |
Search for: management |
Search for: share |
Search for: buyback |
Search for: company |
Search for: industry |
Search for: index |
Search for: chart |
Search for: credit |
Search for: parties |
Search for: Bulgaria |
Newsletter Daily 2008.11.18.pdf, 285 Kb
