Trade on the Bulgarian Stock Exchange (BSE) was coloured in red the past week as individual investors ran the busy selling streak.
Shares’ recovery after the negative nine-month results of a number of companies on the market, alongside instability across peer markets in Europe, started on the afternoon of November 7, due to active trade by institutional investors and big funds. As did positive expectations on US economic fundamentals.
As of 11am on November 7, the BSE main index, the Sofix, was up 1.86 per cent from November 6 close to 1886.34 points. The broader BG40 added 3.18 per cent to 576.6 points. BG TotalReturn30 added 1.93 per cent to 1181.5 points and BG REIT 0.61 per cent to 103.13 points.
Despite the losses, the BSE market capitalisation remained above the 28 billion leva resistance point, which is about 55 per cent of gross domestic product.
The past week, the BSE struck a framework agreement with Deutsche Boerse on the deployment of XETRA, the e-trade platform of the German stock exchange. The five-year agreement specifies the financial parameters, as well as the term of implementation of the XETRA platform. Trade via the XETRA platform is due to start in the middle of 2008.
Meanwhile, a number of new companies are due to join the bourse. On November 6, the bourse registered the share issue of Etropal AD. The company, whose primary activity is research and development in the field of orthopedics and traumatology is due to float five million shares at a par value of one lev each on November 12. The shares will be traded at the unofficial segment of the bourse.
The debut of Hydroisomat AD, the arm of the business assets of Doverie Obedinen Holding AD, is also scheduled for November 12. The firm is slated to offer 1.3 million shares at a value of one lev. An additional package of 300 000 shares are set to be auctioned on November 16 at a starting price of 8.50 leva. The closed auction will be open for a five-day period.
At the same time, the securities commission in the country greenlighted the IPO prospectus of Enemona AD. The energy equipment company is due to issue two million voting shares at a par value of one lev, which is tantamount to 16.8 per cent of the Kozloduy-based company. Pricing is set in the 11-16.80 leva range.
Meanwhile, NEF Telecom Bulgaria OOD, the majority stockholder of the Bulgarian Telecommunications Company (BTC), will close the mandatory buyout offer toward BTC stakeholders on November 23. Retail investors collectively hold 28.66 million shares, which represents 9.93 per cent of the company’s capital. NEF Telecom Bulgaria is offering 11.30 leva a share or an aggregate 323.8 million leva. On successful completion of the transaction, BTC will be de-listed from the bourse.
