The week of February 11 started at a slow pace for the Bulgarian Stock Exchange (BSE), following similar moods on international markets. It once again showed that the BSE’s performance was directly connected to what happened on world markets and investors could, more or less, form their moves on the BSE based on what was happening abroad.
This was the situation on February 11 when the Sofix index, tracking the 16 most liquid stocks on the BSE, lost 0.02 per cent to end at 1422.11 points and the BG 40 index, which follows the 40 most liquid companies, fell 1.19 per cent to 400.23 points.
“As a whole, trade was influenced by the fact that movements on international markets were driving the Bulgarian market, literally until last month. Now international markets lack a specific direction and this was automatically reflected on the Bulgarian market,” Petko Valkov, managing director of Sofia-based Benchmark Asset Management, said as quoted by SeeNews wire agency. “The lack of direction makes investors more cautious,” Valkov said.
His logic was simple. On February 11 most of European shares traded lower, as did the US market. The BSE’s total turnover for the day, excluding block trading and other pre-agreed deals, fell to 9.6 million leva.
Among the most traded shares were those of blue-chip industrial conglomerate Chimimport. They gained 0.66 per cent to end at 11.13 leva, on a turnover of nearly 60 000 shares.
Among the disappointments was local kitchen equipment manufacturer Torgoterm. Its shares attracted low investor interest on their debut on the BSE. A total 4163 Torgoterm shares changed hands at an average weighted price of 6.27 leva, which was above expectations. The company, which has a share capital of three million leva divided into the same number of shares, is planning a free float of 30 per cent. Its shares closed at 6.25 leva.
“The low interest was due to the overall situation on the market at the moment. There will be interest, maybe because the company does not have a peer on the stock market,” Nikolay Vitliemov, broker with brokerage house Varchev Finance told SeeNews.
