Headlines
Toplivo [3TV] To Sell Liquid Fuels Division
Bulgarian Economy Minister Invites ArcelorMittal to Renew deal with Kremikovtzi
Sigma Consulting Raises Stake in Plovdiv BT to 96.27%
Government Approves Spending of BGN 300 mln for Belene N-Plant
Road Agency Cancels Tenders for BGN 320 mln
Bulgaria's Gross Foreign Debt Rises to EUR 33.6 bn
| Value | Daily Chng | YTD Chng | |
| SOFIX | 598.51 | -1.07% | -66.15% |
| BG 40 | 159.13 | -1.33% | -69.28% |
| BG REIT | 57.19 | -6.89% | -44.60% |
| BGTR 30 | 410.80 | -2.52% | -62.57% |
| Shares Turnover (BGN thnds) | 2 815.98 |
| Bonds Turnover (BGN thnds) | 20.13 |
| market Capitalisation (BGN mln) | 14 040.73 |
| market Capitalisation/GDP | 22% |
| Ticker | Change | |
| Sopharma AD | 3JR | + 9.49% |
| Gamakabel AD | 4GA | + 7.13% |
| Kremikovtzi AD | 4KW | + 3.47% |
Top Losers
| Ticker | Change | |
| Hydroizomat AD | 4HI | -24.32% |
| Advance Terrafund REIT | 6A6 | -18.81% |
| Bulgarian Real Estate Fund | 5BU | -17.96% |
* Gainers: Among shares with turnover above BGN thnd 10;
Losers: Among shares with turnover above BGN thnd 4;
Overview
Another Day, Another Slump
Bulgarian stocks were trading mostly lower today after sell-offs in USA and Asia on deepening recession fears, earnings announcements and concerns over the health of the emerging markets’ financial system. In a very slight turnover, SOFIX dipped under 600 minutes after the opening and oscillated around this level during the day. A new wave of selling hit the index at the end of the session to see it closing bellow 600 for the second time since the beginning of the credit crunch. SOFIX however closed above its law from October 10 when we saw it at a 4-year bottom.
Real estate funds were among the hardest hit amid disquieting news on the emerging economies financial and construction sector. More than 174 000 shares of Advance Terrafund [6A6; -18.8%] changed hands during the session at the end of which massive sell-offs erased 18.8% of the REIT’s value. Bulgarian Real Estate Fund [5BU; -18.0%] also incurred hefty losses, slumping almost 18%. Earlier this week the REIT said it had paid early two loans worth a total of EUR 20.2 mln to EFG Eurobank Bulgaria. Meanwhile, the European Construction industry Federation said that it expects growth of Bulgaria’s construction sector to slow down to 5% this year from 38% in 2007.
Corporate news
Toplivo [3TV] To Sell Liquid Fuels Division
Toplivo [3TV] plans to sell its loss-making liquid fuels division to Synergon Petroleum, part of Toplivo’s majority owner Synergon Holding [6S7], Toplivo said. The company plans to sell 25 liquid fuel retail units with a total bookvalue of BGN 27.3 mln and use the money to upgrade and expand its retail and wholesale network. Toplivo expects to increase its share on the building materials and coal/briquettes market as a result. The move will be put to a vote at a shareholders’ meeting on December 6.
Bulgarian Economy Minister Invites ArcelorMittal to Renew deal with Kremikovtzi
Bulgarian Economy Minister Petar Dimitrov has invited ArcelorMittal to renew its deal with the Kremikovtzi [4KW] after Vorskla Steel, a company controlled by Ukrainian tycoon Konstyantin Zhevago, said it plans to cancel its tolling contract with the steel mill. Dimitrov said the state is ready to facilitate ArcelorMittal's talks with the receivers if the company is interested in the management of Kremikovtzi. The mill, which was declared insolvent in August, signed a tolling contract with ArcelorMittal earlier this year. The deal with Vorksla Steel was signed afterwards.
Sigma Consulting Raises Stake in Plovdiv BT to 96.27%
Sigma Consultinghas raised its stake in Plovdiv BT [4CV] to 96.27% from 78.18% following a buyout offer to minority shareholders, Sigma Consulting said. Sigma Consulting offered to pay BGN 36.6 per share to minority stock holders. It bought the majority stake in the plant for BGN 30.9 mln on the Sofia bourse in July.
Economy and Politics
Government Approves Spending of BGN 300 mln for Belene N-Plant
Bulgaria’s government on Thursday approved the allocation of BGN 300 mln for raising the capital of the recently established Bulgarian Energy Holding. The money will go for increasing the share capital of the National Electric company (NEK) and will be used to speed up the building of the country’s planned second nuclear power plant in Belene. NEK is planned to spend BGN 450 mln on the project until the end of 2009, when it is expected to have secured financing needed for the EUR 3.99 bn project.
Road Agency Cancels Tenders for BGN 320 mln
Tenders worth some BGN 320 mln under the European Union’s Regional Development Operational Programme have been canceled by the National Agency Road Infrastructure (NARI) because of omissions in the tender procedures or doubts regarding some of the companies. Tenders for contracts worth BGN 120 mln were won by companies controlled by Holding Roads [6H2] and Trace Group Hold [T57] had contracts for repairs worth close to BGN 25 mln. The government appointed Ivan Atanasov as interim executive director of NARI after its former CEO, Dimitar Ivanov, resigned on October 17. NARI was set up earlier this year to take up the administration of key domestic infrastructure projects, replacing the former state agency in charge of road construction shaken by corruption scandals.
Bulgaria's Gross Foreign Debt Rises to EUR 33.6 bn
Bulgaria’s gross foreign debt rose to EUR 33.6 bn at the end of August, up by 16.5% from the end of 2007, according to data from the country's central bank. The country's long-term foreign debt was EUR 20.7 bn and its shortterm debt totaled EUR 12.9 bn at the end of August.
Upcoming Events
Toplivo Ad [3TV]
06.12.2008 Toplivo [3TV] to hold a shareholders’ meeting to vote on a proposed sale of liquid fuels Business. The meeting starts at 1000 local time.
Trends (Sofix) (chart, table)
BG40 Stocks (table)
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