Headlines
- Brazil’s CSN Interested in Kremikovtzi, Econ Min Says
- Monbat Raises share Capital of Romanian Subsidiary
- October Jobless Rate at 5.85% - Falls Y/Y, Rises M/M
- Sofia City to Sign EUR 105 Mln Loan with EIB
- UniCredit Says Bulgaria's GDP to Grow by 6.3% in 2008
- Bulgaria MayCut 2009 Growth Forecast – Deputy PM Plugchieva
Overview
More Pain on the Stock market
All hopes for rebound that rose after yesterday’s positive movements were buried today as most of the local shares saw another round of heavy losses. The sell-off in Bulgaria came after sharp drops in USA and Asia driven by busting fears that the threatening deflation would deepen and prolong the global economic decline.
Stocks started the day falling sharply, with SOFIX and BG40 losing more than 3% in the first fifteen minutes of trading, and grounded their way down by the end of the session. SOFIX closed down 5.35%, at 319.04, falling bellow its low set on November 18. The wider BG40 dropped 5.20% and closed at 92.48, only 57 points above its absolute low marked on February 8, 2005, five days after it was launched.
Out of 94 companies traded today, 20 posted double-digit losses. The top loser for the day was holiday resort Slanchev Bryag [3JL; -48.68%] which slid to BGN 2.71 in a volume of 5 799 shares. Unlike Slanchev Bryag, another representative of the sector, SS Konstantine And Elena Holding [3NJ; +4.90%], was among the few gainers.
Most of the shares continued to trade invery light volumes which indicates that the continuous price falls are based mostly on an absence of buyers. Todays’ turnover totaled BGN 2.9 mln., excluding a single transaction of 2.324 mln shares of Petrol worth BGN 24.5 mln. During the last four days 10.2 mln shares (9.3% of the capital) of the oil retailer changed hands and the average share price advanced by a total 16%.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 319.04 | -5.35% | -81.95% |
| BG 40 | 92.48 | -5.20% | -82.15% |
| BG REIT | 46.73 | -2.93% | -54.74% |
| BGTR 30 | 253.62 | -5.74% | -76.89% |
| Shares Turnover (BGN thnds) | 27 266.14 |
| Bonds Turnover (BGN thnds) | 478.20 |
| OTC market Turnover (BGN thnds) | 236.70 |
| market Capitalisation (BGN mln) | 11 383.73 |
| market Capitalisation/GDP | 18% |
| Top Gainers | Ticker | Change |
| Petrol AD | 5PET | + 7.33% |
| Konstantine And Elena Hold. | 3NJ | + 4.90% |
| ERG Capital-2 REIT | 6ER | + 4.17% |
| Top Losers | Ticker | Change |
| Slanchev Bryag AD | 3JL | -48.68% |
| Bulgar. Amer. credit Bank | 5BN | -15.36% |
| Lead & Zinc Complex | 5OTZ | -14.99% |
* 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) |
| 4.34 | 319.04 | -5.35% | -81.95% | 1 688 |
Corporate news
Brazil’s CSN Interested in Kremikovtzi, Econ Min Says
Brazilian steelmaker CSN is interested in Kremikovtzi [4KW], Bulgaria’s economy ministry said. CSN has shown "serious interest in investing" in the plant, the ministry said but did not provide details. Besides CSN, Ukrainianbased Smart Group and a consortium of Czech investment management group M.L. Moran and A.T. Kearney have also shown interest in the plant, while Russian iron concentrate and steel trader Prominvest and an unnamed company are offering to supply Kremikovtzi with raw materials, local daily Dnevnik reported. Kremikovtzi was declared insolvent in August.
Monbat To Lay Off 120 Workers
Monbat [5MB] on Thursday said it will reorganize its production process and will adopt a new personnel schedule for all of its subsidiaries in order to optimize the production activities and decrease expenses significantly amid the increasingly negative influence of the economic crisis. As a result of the forthcoming reorganization, the management board expects to reduce the job positions of approximately 120 employees within the whole structure, the company said.
Economy and Politics
October Jobless Rate at 5.85% - Falls Y/Y, Rises M/M
Bulgaria's unemployment rate fell to 5.85% in October from 6.73% a year earlier but rose slightly compared to September, when it was 5.8%, the government's Employment Agency said on Thursday. The number of registered unemployed people in October was 216,644, down 13.1% on the year. The number was 0.9% higher compared to September. Some companies in the country recently laid off part of their staff or announced plans to do so because of shrinking demand for their production.
Sofia City to Sign EUR 105 Mln Loan with EIB
Sofia city on Friday will sign a EUR 105 mln loan deal with the European Investment Bank (EIB), the municipality said. The 25-year loan with a 7-year grace period bears an interest rate of EURIBOR+0,1%. It will be used to finance the construction of two stretches of the city underground with combined length of 6.35 km.
UniCredit Says Bulgaria's GDP to Grow by 6.3% in 2008
UniCredit expects Bulgaria’s GDP growth to increase to a real 6.3% in 2008 from 6.2% for last year and slow down to 4.2% in 2009, the banking group said in a report. UniCredit expects that the country’s economy will expand by 4.5% in 2010. The group also said that foreign direct investments are expected to fall as percentage of GDP this year, as they are seen at 15.5% of GDP, compared to 22.6% of GDP for 2007, when the country attracted a record high FDI. The country’s current account gap is seen swelling to 23.5% of GDP this year from 21.8% for 2007.
Bulgaria May Cut 2009 Growth Forecast – Deputy PM Plugchieva
The government may revise downward its forecast for the country’s economic growth next year set at 4.7%as the global financial crisis takes its toll, Deputy Prime Minister Meglena Plugchieva told Reuters. She also said that the country had not been seriously affected by the financial crisis but the government had to monitor closely foreign-owned banks in the country to see whether they had restricted lending."It is not to be excluded but at the moment there are no problems with credit for people and companies," Plugchieva said.
Upcoming Events
Aroma AD [6AR]
25.11.08Aroma AD [6AR] to hold a shareholders’ meeting, scheduled to start at 11:00 a.m. local time.
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 2008.11.20.pdf, 57 Kb
