The local indexes advance as international equities fall (24.01.2014)
“There is a weak correlation between the Bulgarian Stock Exchange and the international markets, which reflects the positive acumen of small investors and partially the lack of large ones” said Vesselin Zahariev, partner at investment bank Mane Capital.
Two weeks of consecutive gains on the Bulgarian stock market. SOFIX grew 10% from the beginning of the year. Today the indexes closed at SOFIX (+0,6%) at 546.67 points, BGBX40 (+0,3%) at 109.64 points, BGTR30 (+0,4%) at 386.85 points and BGREIT (+0,1%) at 90 points.
“The main indexes advanced, although we saw significant declines in the US, the European and the Asian equity markets, which were mainly a result of disappointing Chinese GDP data and negative earnings surprises across European companies, led by BG Group. Weak correlation between the Bulgarian market and the international markets reflects the positive acumen of the small Bulgarian retail investor at the beginning of 2014 and partially the lack of large retail investors, which do react to news that impact international markets.” said Vesselin Zahariev, partner at investment bank Mane Capital.
Considering the situation, trading volume remained low, with Himimport once again being the most traded company. Entering the season of fourth-quarter profit disclosure, there was almost no reaction to the positive earnings of Monbat, which had only 3,000 trades, resulting in a 0.6% increase in the stock price. First Investment Bank continued its January gains with a 1.2% increase in its stock price and nearly 25,000 trading volume, reaching a price of BGN 3.04, which is the highest since 2011. There were no major movements and trading volume in the REITs segment with the Bulgarian Real Estate Fund being the most liquid.”
The Bulgarian equity market totaled BGN 932,000 in market capitalization with almost half belonging to Himimport (+2.8%) –BGN 317,000 and CCB (+0,9%) – BGN 141,000, followed by FIB (+1,2%) – BGN 76,000 and Bulgarska roza- Sevtopolis (-2,5%) – BGN 45,000.
There are 65 publicly traded stocks, with winner to loser ration 26/33, and 6 stocks showing no change. Among the companies with revenues above BGN 5,000, Yuri Gagarin PLC (+8,8%) was the best performer while Sviloza (-6,9%), Doverie (-3.4%) and Energo-Pro Sales (-2.7%) were the worst performers.
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