The week started well for the two indices on the Bulgarian Stock Exchange (BSE). On August 27, the blue-chip Sofix index of the 16 most liquid shares on the BSE rose 0.64 per cent to 1564.988 points, while the broader BG40 index gained 0.5 per cent to 401.33 points.
Shares in holding company Eurohold Bulgaria and lead and zinc smelter OTZK were among those seeing the biggest gains on August 27, Nikola Tsokev, a broker at Postbank, told SeeNews wire agency.
Eurohold Bulgaria closed higher after positive expectations about its consolidated net profit for the first half of this year, due to be filed by the end of the August, Tsokev said. Shares in the company closed 6.9 per cent higher at 6.66 leva, on volume of about 42 600 shares. Expectations that OTZK shares will be included in the blue-chip index, after the company fulfilled all the requirements earlier in August, lifted the company’s share price, Tsokev said. OTZK ended at 73.9 leva, 4.3 per cent higher, with about 4100 shares changing hands.
On the losing side was machine engineering company Elprom ZEM, as institutional investors sold a large amount of their shares in the company, bringing down the price. Elprom ZEM closed 2.17 per cent lower at 18 leva on a volume of approximately 5400 shares.
Shares of Orgahim saw the smallest increase, adding 0.85 per cent to their value, taking the new price to 448.44 leva, around 200 shares were traded. Almost all public companies from the Himimport’s group saw an increase in share value. The shares of the Central Co-operative Bank added 2.9 per cent to their value, increasing to 9.4 leva. Shares in Himko saw the largest fall, they lost 10.7 per cent of their value, ending at a price of 0.25 a share.
In general, on August 27, a total of 74 shares rose, 46 fell and 18 ended flat. Turnover on the BSE rose to 19.1 million leva from 11.9 million leva on August 24. The Dnevnik 20 index appreciated 0.58 per cent to 234.73 points. In the meantime the majority owner of Olovno Tsinkov Komplex AD, Kurdjali Itertrust Holding BG EAD, said that after the last sale of shares, on August 22, a free float of 10.006 per cent was reached and, for now, they will not be releasing any more shares for sale.
The possible withdrawal of the Bulgarian Telecommunications Company and DZI insurance company from the BSE continued to attract attention. The withdrawal of the two companies would decrease the capital of the BSE by 3.837 billion leva to 20.012 billion leva. BTC is one of the main companies on the BSE, with a market capitalisation of 3.11 billion leva.
Following AIG Global Investments Group’s acquisition of nearly 90 per cent of BTC, questions are being asked whether the company will stay on BSE or not. Some speculations say BTC will keep its place on the BSE, because of the tax relief that it will receive from being listed on the BSE. It is the same with DZI. It was acquired by the Belgian company KBC Insurance. DZI’s current market capitalisation is 727.1 million leva. KBC Insurance owns more than three million shares of DZI or a 81.21 per cent stake. KBC intends to sell a total of 725 282 shares at a starting price of 188.37 leva a share.
