Shares on Bulgarian Stock Exchange (BSE) rose on September 4, with the two major stock exchange indices ending at a record high. The blue-chip Sofix index, of the 16 most liquid shares on the BSE, gained 0.3 per cent to finish at a record high of 1610.47 points, while the BG40 index, tracking the 40 most traded stocks on the BSE, increased by 1.12 per cent, hitting a new high of 430.79 points.
“After the summer holidays, all players are present again and are beginning to place their funds,” Ilian Scarlatov, a broker with Sofia International Securities, told SeeNews wire agency.
Almost all most liquid stocks gained on September 4, matched by financial stocks led by insurer Bulstrad, which increased in value by 4.16 per cent to close at 375 leva a share.
Overall, market sentiment was positive with gainers outnumbering decliners by 81 to 51 and 18 shares ending unchanged. Total BSE turnover rose to 13 million leva from eight million leva on September 3.
Scarlatov said that about 10 initial public offerings and capital increases are expected by the end of the year, tapping into the liquidity on the market.
“On the other hand, plenty of cash will be freed thanks to the buyout offers for [minority stakes] in DZI insurance company and the telecommunications giant BTC,” he said. It will be very interesting over the next three months.
Two blue-chip Bulgarian companies have recently been taken over by international majors, who said they plan to delist them. DZI was acquired by Belgian financial group KBC, while BTC was taken over by AIG Global Investment Group. For yet another week, KBC Group continued its march towards acquiring the full stake of DZI. KBC wants to buy the remaining 15-percent shares it does not already own in DZI, according to Reuters. The process was scheduled to begin on September 5 and to end in early October. The price will be 96.3 euro a share, which made a total sum of 40.2 million euro for the minority package.
KBC will delist DZI from the Bulgarian Stock Exchange once the bid is completed, the company said. According to the Belgian group’s plans, earnings per share have to increase by at least 12 per cent in 2007-2009.
The BSE’s two new indices also rose. The BG TotalReturn30 (BG TR30) index, including companies with a free float of at least 10 per cent having equal weights in the index, grew 0.79 per cent to 1014.54 points. The BG REIT index based on market capitalisation, corrected for the free float, of real estate investment trusts traded on the stock exchange, edged 0.06 per cent higher to 100.05 points.
The two indices made their debut on the BSE on September 3. The BG REIT fell slightly, by 0.01 per cent, to 99.99 points. But BG TR30 rose by 0.66 per cent to 1006.61 points.
The price increase registered by two special purpose vehicles, Prime Property BG (+4.67 per cent) and Bulgaria Real Estate Investment Fund (+2.25 per cent), saved BG REIT from falling further. There was no trade in three of the 11 companies included in the index on that day.
Meanwhile, the stocks of the two IT companies, Specialised Business Systems (SBS) and Bianor have been registered for secondary trade on the BSE. Trade in stocks of the two companies is expected to start on September 10. SBS’s stock will be traded on segment A of the BSE’s unofficial market. The issue of the company amounts to 100 000 shares with a value of 50 leva a share.
Bianor will offer a total of 675 222 shares with a one lev a value each. The company owns majority stakes in Bianor Services, Nextborn and Nai-Mag, as well as a 15-percent stake in AllTelecoms.
