Last Issue    Subscribe NOW!    Analyses    Discover Bulgaria    Български  Archive
Business Industry Capital
ISSN 1311-364X
Friday, 20 September 2019, Issue 5042
  Bulgaria   Bulgarian Industrial Association   World   Discover Bulgaria BIC Capital Market Ltd. 

BIC Capital Market Ltd. updated
the General terms and conditions for using information services and Privacy policy.


       Bulgaria
 
 On-line issue
 Bulgarian issue
 Unsubscribe


BNB Exchange Rates
(20.09.2019)
  EUR   1.95583  
GBP   2.20412
USD   1.76726
CHF   1.78289
EUR/USD   1.1067*
ECB exchange rate
Basic Interest Rate
  as of 01.09   0 %  


Bulgarian Stock Exchange - 19.09.2019
  Total turnover (BGN): 2 379 479.07  
Traded companies: 39
Premium 485 513.34
Standard 1 870 023.86
REIT 19 167.29
Structured 2 740.82
Bonds 1 178.76
Rights 855.00
Biggest change
Industry Development Holding JSC - Sofia 12.00 %
Zarneni hrani Bulgaria JSC - Sofia -5.36 %
BaSE - Shares: 4 524.85
BaSE - REIT: 316.42

Manufacture of chairs and seats
BEIS rating
Top 10 companies by
Net sales
for 2017
(thous. BGN)
  
  1   Riko Style LTD - Troyan   9 792  
  2   Retroujut Aksaga LTD - Yambol   4 477  
  3   Can Uchtehsport Bulgaria LTD - Kukorevo   3 559  
  4   Harmont SPLTD - Yambol   2 713  
  5   Mebel stil SPLTD - Kazanluk   1 502  
  6   Teoharovi LTD - Petrich   1 012  
  7   Jordani Production SPLTD - Rousse   787  
  8   Pirinska mura JSC - Bansko   289  
  9   Lia 92 LTD - Gotze Delchev   98  
  10   Bul Art SPLTD - Gabrovo   57  
Make your own Bulgarian companies rating in BEIS

Certificated
Bulgarian companies

General meetings today
  Capital Management REIT - Sofia
Ekip-98 Holding JSC - Sofia
Eurobank Bulgaria JSC - Sofia
Piraeus Bank Bulgaria JSC - Sofia
Tera group JSC - Sofia
Zdravets Velingrad JSC - Velingrad
 
Forthcoming General Meetings



Financial news

Foreign direct investment in Bulgaria in the first seven months of 2019 stood at EUR 532.7 million, the equivalent of 0.9 per cent of the gross domestic product (GDP), statistics from the Bulgarian National Bank (BNB) showed on September 19. In the same period of 2018, FDI was EUR 169.5 million, but the original amount reported by BNB last year was EUR 219.9 million, which was revised downward later. Investment in equity, including in the real estate sector, showed a net outflow of EUR 333.6 million (compared to a net outflow of EUR 9.4 million in the first seven months of 2018) and re-invested earnings showed a net outflow of EUR 72.1 million (versus an inflow of EUR 26.5 million a year earlier), according to preliminary data. Receipts from real estate investments by foreign companies in the first seven months of the year totalled EUR 3.6 million, compared to EUR 12.9 million during the same period of 2018.

Source: Sofia Globe

The current account surplus narrowed by 4.6% y/y to EUR 955.9 mln in July, the Bulgarian National Bank (BNB) reported. The cumulative surplus in January-July amounted to EUR 2.976 bln, up 114.0% y/y. On a 12-month rolling basis, the CA surplus represented 7.7% of GDP. The slight deterioration in the CA balance in July alone was driven by y/y decreases in the secondary income and net services’ surpluses during the month. The secondary income surplus fell by 57% y/y to EUR 155 mln, which we think reflected the serious delays in EU fund absorption. Net services’ surplus dropped by 4.6% y/y to EUR 739.1 mln in July, reflecting falling residents’ income from foreign tourists, transport and other services to non-residents. We think that the worsening of the net services’ balance was expected given the worse tourist season in 2019 and is likely to continue in August and September, as well. The merchandise trade balance returned in the negative territory in July and posted a EUR 8.9 mln deficit. The deficit however narrowed by 89.5% y/y. The annual improvement came as exports rose by 6.4% y/y, following a one-off y/y decrease in July. Imports also returned to y/y growth, but increased at slower pace of 3.3% y/y, which we think reflected easing domestic consumption trends.

 
Companies

Bulgaria is no longer the second largest shareholder in the International Investment Bank (IIB). After moving its headquarters from Moscow to Budapest, the institution conducted a new round of capitalization of EUR 10 million, making Hungary the second largest shareholder after Russia with 14.72%. The international bank's capital stood at EUR 339.61 million as of September, with Bulgaria's share shrinking from 12.95% to 12.43%. After the move, Russia's share in the bank's shareholding structure shrinks, but even so it remains controlling by 44.18%. The other IIB shareholders, which has existed since the years of the Mutual Economic Assistance Council in the Socialist bloc's years, are Hungary, Bulgaria, Slovakia, the Czech Republic, Romania, Cuba, Vietnam and Mongolia. Its investment portfolio reaches EUR 900 million and its financial result in the first half of this year is EUR 2.87 million. In Bulgaria, IIB has financed projects for EUR 132.7 million and among the companies supported over the years are Eurohold Bulgaria, Eurolease Auto, Sparky Eltos, Prista Oil Holding, Huevepharma, BTC, etc.

Source: Capital

Liberalization of the natural gas market starts in October. Until then, amendments to the energy law on the gas part are expected to receive final approval by MPs. This was made clear at the meeting of the Energy Committee at the National Assembly, at which the already refined amendments were adopted on second reading without any major obstacles. The changes make it possible to diversify natural gas supplies, which will subsequently be reflected in price levels. The changes start the gas exchange, introducing the concept of "organized natural gas market". In discussing the changes, MPs hoped that the formation of the natural gas market would avoid the faults in the electricity market. Of course, for the most part the changes will depend on the Rules of Procedure, which will have to be prepared by the operator of the organized natural gas market.

Source: 3e News

Bulgaria's Commission for Protection of Competition has granted approval to Zavodski Stroezhi - PS - Pazardzhik to acquire a majority stake in local company Patishta. Under the terms of the deal, Zavodski Stroezhi - PS - Pazardzhik will acquire at least 90% interest in Patishta, the competition regulator said. The deal does not have the potential to lead to the establishment or strengthening of a dominant market position, as the two companies are active on different segments of the market. Zavodski Stroezhi - PS - Pazardzhik mainly engages in the construction of buildings, while Patishta specialises in road construction. Zavodski Stroezhi - PS - Pazardzhik is a wholly-owned unit of Bulgaria's Bulpharma.

Source: SeeNews

Ektrpack has started the construction of the Veliko Tarnovo Business Center, which will be located next to the company's factory in the western part of the city. The investment will amount to BGN 25 million and the financing is provided by UniCredit Bulbank. The building, which has a total built-up area of 30,268 sq.m, will be constructed by the Gabrovo-based company Lucky Stroy 2011. The eight-story building is expected to be ready in the fall of 2021. The business center will have parking lot with 230 parking spaces, office premises, which will have an area between 58 and 600 sq.m. or a total of 15,000 sq.m. It is envisaged that there will be retail outlets on the first level that will have direct access to the parking lot.

Source: Yantra - Veliko Tarnovo

Bulgarian IoT products developer Allterco plans to distribute between BGN 2.5 million and BGN 2.7 million as interim dividend for the first half of 2019. Allterco is planning to distribute part of its reserves formed from share issues, as well as part of its undistributed profit in 2015, 2017, 2018 and the first half of 2019. The company's shareholders will vote on the proposals at a general meeting scheduled for October 25. In July, Allterco wrapped up the sale of five of its telecommunications subsidiaries to Norway's LINK Mobility Group for EUR 7.9 million. Allterco sold its units in Bulgaria - Teravoice, Tera Communications and Allterpay, as well as its Romania-based subsidiary Teracomm RO and Macedonia-based Tera Communications DOOEL. It received 60% of the price in cash and a further 20% is shares in Victory Partners VIII Norway Holding - the sole owner of LINK Mobility Group. The remaining 20% will be paid on a deferred basis within two years. The company turned to a consolidated net profit excluding minority interest of BGN 747,000 in the first half of 2019 from a net loss of BGN 411,000 in the same period of 2018.

Source: SeeNews



       Bulgarian Industrial Association


 

       World

Europe

France and Germany are agreed on a strategy to respond to a global economic slowdown at a time of international trade problems but differ over how fast to move, French Finance Minister Bruno Le Maire said. French policymakers are growing anxious as Germany, Europe’s largest economy, dithers over how to pull itself back from the brink of recession, and they want Berlin to do more with its budget surplus to engineer a recovery. In a news conference alongside Germany’s finance and economy ministers, Le Maire said the strategy was based on three pillars: “keep reducing public debt where it is necessary. And it is the case in France; keep pursuing structural reforms, as we are doing in France; have budget policies that can take up the baton from monetary policy.” However, Le Maire said that while there was agreement on the approach there remained an open debate on the timeframe for action. Seeking to underline Franco-German economic cooperation, Le Maire said a pilot plant in France to manufacture electric car batteries will go online in 2022, two years before a second factory opens in Germany.

Source: Reuters

America

US investment fund Blackstone is set to carry out investments of EUR 500 million in Greek hotel properties, starting in the next few days. According to sources, the first acquisition in its Greek portfolio will concern units of a hotel chain with a significant presence in the Ionian and Aegean islands, in a transaction that is expected to come to almost 200 million euros. The current owners of those hotel complexes will retain the management in cooperation with the new stakeholders. For its first purchase of a hotel in Greece the Blackstone Group will use a holdings company based in Luxembourg, which also owns 14 units in Spain. More acquisitions of Greek hotels will follow, with the same sources saying that Blackstone is already involved in talks to this end. The US fund’s interest in Greece is not new. However, people familiar with its strategy say it has become more active now, after the election, as it believes that the new government is “friendlier towards foreign investments and, crucially, will introduce reductions to direct and indirect taxes, which are expected to bolster the competitiveness of the Greek tourism product.”

Source: Associated Press

Asia

China’s economic growth risks slipping below the lower-end of Beijing 2019 target of 6% in the third quarter or over the next year, analysts warn, but government economists are slightly more optimistic as they expect stimulus to help stave off a sharper slowdown. Economists believe China’s economic growth likely cooled further this quarter from a near 30-year low of 6.2% in April-June, but they differ on whether the slowing trend could persist despite a raft of government policy measures. Economic activity worsened in August, with growth in industrial production at its weakest in 17-1/2 years, as the U.S.-China trade war dented business confidence, investment and domestic consumption. “There is a risk for Q3 GDP to be below 6.0%,” said Zhaopeng Xing, an economist at ANZ. “But we expect September will see a jump in fixed-asset investment because many gift projects for 70th anniversary will be confirmed to be in the statistics at the quarter end. So we maintain our forecast of Q3 GDP 6.1%,” he told Reuters.

Source: Reuters

 
Indexes of Stock Exchanges
19.09.2019
Dow Jones Industrial
27 094.79 (-52.29)
Nasdaq Composite
8 182.88 (5.49)
Commodity exchanges
19.09.2019
  Commodity Price  
Light crude ($US/bbl.)58.62
Heating oil ($US/gal.)2.0100
Natural gas ($US/mmbtu)2.5400
Unleaded gas ($US/gal.)1.6600
Gold ($US/Troy Oz.)1 512.00
Silver ($US/Troy Oz.)17.96
Platinum ($US/Troy Oz.)943.20
Hogs (cents/lb.)67.95
Live cattle (cents/lb.)105.82

       Discover Bulgaria

September 22 – Bulgaria’s Independence Day

30 years after Bulgaria’s liberation from Ottoman yoke the effects of the Congress of Berlin July 1 (13), 1878 continued to lie heavy on Bulgarian people. The final rejection of the unfairly imposed clauses was not possible before 1908. The Young Turks’ taking the power in Turkey and the Austrian intention to annex Bosnia and Herzegovina favoured Bulgarian position. The diplomats decided to proclaim the country’s Independence right after the annexing finding this moment for the most suitable one. The whole preparation for the ceremony was performed in measures of extraordinary security and secrecy. Despite Russian dissent, in the morning of September 22, 1908 prince Ferdinand and the politicians went into the church St. 40 Martyrs in Rousse where a divine service was carried out. When the service ended prince Ferdinand read an edict proclaiming Bulgaria for Independent Kingdom and its sovereign for Bulgarian King. The people who witnessed the ceremony were truly astonished and the news ignited tremendous and spontaneous joy among the Bulgarians. Proclaiming the independence gave Bulgaria the right to be treated equally in the international relations. Gradually the monarch’s position became consolidated. The prince’s edict directly reflected on the European political situation. The Bulgarian Independence’ proclaiming was a manifestation of the independent Bulgarian spirit and was an important step towards the consolidation of the Third Bulgarian State.


Subscribers of "Business Industry Capital" as of 20.09.2019
Bulgarian Issue: 29994, English Issue: 2905

Published by BIC Capital Market Ltd., Sofia, 16-20 Alabin Str.,
tel. (+359 2) 980-10-86, fax 981-45-67, e-mail: bic@bia-bg.com, http://beis.bia-bg.com/
Copyright © 1999-2019. All rights reserved.


Archive
Business Industry Capital

Година:  
January 2024
 MTWTFSS
11234567
2891011121314
315161718192021
422232425262728
5293031    

February 2024
 MTWTFSS
5   1234
6567891011
712131415161718
819202122232425
926272829   

March 2024
 MTWTFSS
9    123
1045678910
1111121314151617
1218192021222324
1325262728293031


 2024   2023   2022  
 2021   2020   2019  
 2018   2017   2016  
 2015   2014   2013  
 2012   2011   2010  
 2009   2008   2007  
 2006   2005   2004  
 2003   2002   2001  
 2000   1999