Headlines
- Fazerles To Cut 30% of Jobs
- Slantse Stara Zagora-Tabac Resumes Production
- Naftex Petrol Raises Stake in Petrol AD to above 30%
- Mining, Transport, Construction to be Hardest Hit by Crisis - BIA's Danev
- Agriculture Not Threatened by Lack of Fertilizers
Overview
Stocks Bounce Again
Short-term Bottom Suspected
Bulgarian stocks started the week with upward movements, in line with most of the European markets which climbed, lifted by the U.S. federal government's plan to rescue beleaguered financial giant Citigroup, announced on Sunday. The main index on BSE – SOFIX - rose in two consecutive sessions, on Friday and Monday, for the first time within the last four weeks. The blue-chip index surged by 2% shortly after the opening and continued to climb, gaining 5.87% by midday and 10% since Thursday. Then desire for profit taking got predominant and selling intensified, slashing the raise of the SOFIX to 3% by the end of the session.
Turnover in bonds totalled BGN 12.7 mln - significantly higher than the average for the last few weeks. Turnover in shares remained low – BGN 1.8 mln excluding a single trade with 1.9 mln shares of Petrol [5PET; +4.76%] worth BGN 21.96 mln, but volume, in terms of shares traded, was significantly higher than the average for October. More than 843 thousands shares were traded today, vs. an average 501.5 thousands per day in October 2008 and an average 341 thousands in October 2007, when the market peaked.
Volumes have been rising tenaciously in the last few weeks, which reveals increasing activity on the stock market. Meanwhile, prices have been spiralling lower and lower to hit 5-year lows. This brings back to life the question of a short term bottom which we may have seen on Thursday. when SOFIX closed at 319.04.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 344.49 | 3.00% | -80.51% |
| BG 40 | 101.24 | 0.90% | -80.46% |
| BG REIT | 47.63 | 2.67% | -53.86% |
| BGTR 30 | 272.14 | 1.88% | -75.20% |
| Shares Turnover (BGN thnds) | 23 762.34 |
| Bonds Turnover (BGN thnds) | 12 685.22 |
| OTC market Turnover (BGN thnds) | 2 184.35 |
| market Capitalisation (BGN mln) | 11 785.59 |
| market Capitalisation/GDP | 18% |
| Top Gainers | Ticker | Change |
| Zarneni Hrani Bulgaria AD | T43 | + 19.67% |
| Holding Roads AD | 6H2 | + 16.53% |
| CB Central Cooperative Bank | 4CF | + 13.33% |
| Top Losers | Ticker | Change |
| Bulgar. American credit Bank | 5BN | -17.27% |
| Blagoevgrad-BT Inc AD | 55B | -14.71% |
| Synergon Holding AD | 6S7 | -10.42% |
* 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) |
| 4.78 | 344.49 | 3.00% | -80.51% | 1 096 |
Corporate news
Fazerles To Cut 30% of Jobs
Fazerles [4F6] and other companies in and close to the town of Silistra in northern Bulgaria have started job cuts, media reported quoting Dimitrichka Peikova, a representative of the Confederation of Independent Trade Unions in Bulgaria for Silistra, as saying. Fazerles executive director Manol Todorov has said that one of the company’s production lines will be stopped, which will lead to a 30% reduction of the company’s 120-strong workforce, state-run Information agency BTA reported. Fazerles exports about 85% of its production, with two-thirds of the exports going the European Union. However, the company expects the price of wood to increase by 30%, which will also influence the price of the company’s production besides labour cost.
Slantse Stara Zagora-Tabac Resumes Production
Slantse Stara Zagora-Tabac [3JO] on Monday said it has resumed work after production was seized earlier this year. The plant is now producing eight types of cigarettes under the Armeec brand, it said in a filing. Slantse Stara Zagora-Tabac is 78%-owned by local company Business Centre Izgrev, which bought the majority stake in it from stateowned tobacco holding group Bulgartabac in late July.
Naftex Petrol Raises Stake in Petrol AD to above 30%
Naftex Petrol has raised its stake in Petrol AD [PET] to above 30% following deals with large packages of shares in the fuel retailer last week, data from the country’s Central Depository showed. Petrol Holding has lowered its stake in Petrol to less than 65% as a result.
Economy and Politics
Mining, Transport, Construction to be Hardest Hit by Crisis - BIA's Danev
Copper mining, cargo transportation and construction are expected to be the hardest hit by the economic crisis, Investor.bg quoted the head of the Bulgarian Industrial Association, Bozhidar Danev, as saying. Danev also said that unreasonable hikes of salaries in Bulgaria would pose a threat to the country’s economy. The gross salary in the country increased by 39% between 2005 and 2007, while inflation accelerated by 16.4% during that time.
Ariculture Not Threatened by Lack of Fertilizers
Despite the temporary shutdown of Neochim [3NB] and Agropolychim due to a drop in demand, Bulgarian fertilizer producers have enough production in storage to secure the normal functioning of the agriculture sector in the country, the association of fertilizers producers in the country said in a statement filed by Neochim. Both plants are ready to restore production in case demand increases, the statement said.
Upcoming Events
Monbat AD [5MB]
25.11.2008 Monbat [5MB] Monbat AD to publish its October financial results.
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 2008.11.24.pdf, 281 Kb
