Headlines
- Holding Roads Consolidated 9M sales Up by 13%
- Bulgarian Constructors to Finish Trakia Motorway
- Toplofikatsia Sofia to Enter the National Energy Holding
- Gross External Debt Widens to 104.6% of GDP
- Current Account Gap Seen at 24 - 28% of 2009 GDP
Overview
Stocks Extend Gains
Stocks extended gains on Tuesday as buying intensified after recent severe losses. The SOFIX index jumped by 9.02% in the first 20 minutes of trading and the BG40 was moving 5.99% higher by that time. Steep rises proved unsustainable and the blue-chip index closed with a daily gain of 4.78% to 360.95, while the BG40 finished at 105.19, up by 3.9%. This is the third consecutive day of gains for the local stock market, which fell by about 80% before the three-day recovery. Now the question is for how long the stocks will keep moving up.
Stocks extended gains on Tuesday as buying intensified after recent severe losses. The SOFIX index jumped by 9.02% in the first 20 minutes of trading and the BG40 was moving 5.99% higher by that time. Steep rises proved unsustainable and the blue-chip index closed with a daily gain of 4.78% to 360.95, while the BG40 finished at 105.19, up by 3.9%. This is the third consecutive day of gains for the local stock market, which fell by about 80% before the three-day recovery. Now the question is for how long the stocks will keep moving up.
Biovet AD [53B; 19.91%] fell by 19.91% to BGN 3.56 in a volume of BGN 12,239 and Hydraulic Elements and Systems [4HE; -9.99%] slid 9.9% to BGN 4.0 in a volume of BGN 10,008, becoming the top losers. Another company from the machinery sector, M+S Hydraulic [5MH; +23.73%], was among the biggest gainers - the share surged by 23.73% to BGN 4.95 with shares worth BGN 5,592 traded.
| Value | Daily Chng | YTD Chng | |
| SOFIX | 360.95 | 4.78% | -79.58% |
| BG 40 | 105.19 | 3.90% | -79.70% |
| BG REIT | 47.42 | -0.44% | -54.07% |
| BGTR 30 | 282.09 | 3.66% | -74.30% |
| Shares Turnover (BGN thnds) | 3 658.44 |
| Bonds Turnover (BGN thnds) | 415.22 |
| OTC market Turnover (BGN thnds) | 1 713.02 |
| market Capitalisation (BGN mln) | 11 809.37 |
| market Capitalisation/GDP | 18% |
| Top Gainers | Ticker | Change |
| Neochim AD | 3NB | + 17.83% |
| Trace Group Hold | T57 | + 13.71% |
| BACB | 5BN | + 12.89% |
| Top Losers | Ticker | Change |
| Biovet AD | 53B | -19.91% |
| Hydraulic Elements & Systems | 4HE | -9.99% |
| Petrol AD | 5PET | -9.09% |
* 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) |
| 4.99 | 360.95 | 4.78% | -79.58% | 2 940 |
Corporate news
Holding Roads Consolidated 9M sales Up by 13%
The consolidated 9M revenues of Holding Roads [T57] accounted for BGN 105 mln, registering 13% y-o-y growth, according to a press release made by the Executive Director of the company Filip Stoyanov. The road constructor forecasts 2008 consolidated sales to reach BGN 200 mln. The consolidated financial statement of Holding Roads is expected to be released by the end of the week.
Bulgarian Constructors to Finish Trakia Motorway
Four Bulgarian companies are the final bidders for the construction of the remaining 37 km section of Bulgaria's key Trakia motorway, local media reported on Tuesday. The companies that have already submitted offers for th tender, are Glavbolgarstroy, Holding Roads [6H2], Moststroy [5MY] and Trace Group Hold [T57].The construction of the section is expected to be worth some BGN 340 mln. Local media also announced that the leading local heavy constructors have supported the national road infrastructure agency in its attempts to reform road management, one of the European Union’s requirements to finance the country’s infrastructure. Meanwhile, Regional Development Minister Asen Gagauzov said Bulgaria plans to complete the construction of two of its key motorways, Trakia and Maritsa, in three years, by 2011.
Toplofikatsia Sofia to Enter the National Energy Holding
Toplofikatsia Sofia is likely to enter the newly-founded Bulgarian Energy Holding (BEH), said deputy minister Galina Tosheva, Dnevnik a.m. reports. Earlier this month the government gained full control over the troubled heating utility, taking over a stake of 58% in it from the Sofia municipality, in an attempt to bail it out. Tosheva added that one of the options is BEH to become a shareholder in Toplofikatsia Sofia in order to pay off the utility’s debts to Bulgargaz, which are estimated to stand at BGN 300 mln.
Meanwhile, BEH could also extend a loan to Bulgargaz in order to guarantee supplies from Russian major supplier Gazprom.
Bulgaria has merged its biggest state-owned energy companies into a BGN 8 bn holding company to strengthen its position in the European market. BEH consolidates the main state power utility NEK, gas company Bulgargaz, coal miner Maritsa East, thermal power plant Maritsa East Two and Kozloduy NPP.
Economy and Politics
Gross External Debt Widens to 104.6% of GDP
Bulgaria’s gross external debt accounted for EUR 35.6 bn (104.6% of GDP) as of the end of September, vs. EUR 28.85 bn at year-end 2007, Bulgarian National Bank data showed. In September alone gloss external debt increased by 37% y-o-y. The main driver of the growth are the commercial banks as their external liabilities advanced by 56.2% y-o-y to EUR 9 bn at the end of September. Meanwhile, net external debt accounted for EUR 16.3 bn (47.9% of GDP), vs. EUR 11.8 bn (40.9% of GDP) at the end of 2007.
Current Account Gap Seen at 24 - 28% of 2009 GDP
Bulgaria’s current account deficit is expected to expand to between 24% and 28% of the 2009 projected GDP, said Bozhidar Danev, chairman of the Bulgarian Industrial Association (BIA). In the first nine months, the country's current account deficit widened to a preliminary 15.8% of the projected 2008 GDP, vs. 13.5% of GDP in the respective period last year. Danev explained the further widening of the gap with withdrawal of foreign investors from the country over the global financial crisis and an expected decline in Bulgaria’s exports. Earlier in the month, the European Commission forecasted a current account deficit of 22.3% of GDP in 2009 and 21.5% of GDP in 2010 , versus a projected 23.8% of GDP in 2008. Meanwhile, Bulgarian government sees a current account deficit of 22% of GDP in 2009.
Upcoming Events
Unipharm [59X]
26.11.2008 - Shareholders of Unipharm [59X] will vote on a capital increase proposal on an extraordinary shareholders' meeting scheduled for 11.00 a.m.
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 2008.11.25.pdf, 57 Kb
