All four major indexes on the Bulgarian Stock Exchange followed the slight positive sentiment on the international markets. SOFIX rebounded from the recent low levels printed at the end of last week and adds 1.22% as the current index level reached 291.73. For the last 12 months the measure lost around 30% and is still close to the 3-years low. Similar performances could be seen for BG TR30 and BG40 indexes. In a good state by itself is the specialized BG REIT adding 0.74% for the last week and performing the distinguished 41.5% for a year back. Most of the highest traded turnovers were within Mekom (one of few food producers on BSE) and two REIT’s companies. Regarding to Mekom, around 40% of the company’s shares outstanding changed the holder, as it was announced later on the buyer is Expat Capital (an investment company linked by the former minister, Nikolay Vasilev). The price per share of the company’s stack was BGN 0.10 which is more than 80% less than a year ago. During the week a lot of dividend payment’s notices and additional forecasting data were announced leading to continuing investment interest upon so called “terra funds”. The biggest market issuer in this field, Advance Terrafund, announced that more than 20 Mln. Leva dividends’ payment will be distributed to the shareholders starting from June 20. Most of the expectations are related to reinvestment of a large amount of this payment. The stock price climbed by 3.48% for a week as well as above 870 000 shares (about 1% of the total shares outstanding) changed the owners. 

During the last week the National Statistics (NSI) announced that Industrial Production Index seasonally adjusted increased by 1.5% in April 2012 as compared to March 2012 (compared to the same month of 2011 it rose by 0.3%); Turnover in Retail trade, except of motor vehicles and motorcycles at constant prices was kept the same level of the previous month; During the first quarter of 2012 GDP increased by 0.5% compared to the same quarter of the previous year. At the beginning of the week Bulgaria has signed the contract with BNP Paribas, Raiffeisen Bank International, and HSBC about the management of the forthcoming EUR 950m Eurobond.

The weekly return of collective investment schemes managed by the "UBB Asset Management" were in a mixed performances’ territory as the UBB Platinum Bond and UBB Patrimonium Land reported increasing of 0.10% and 0.11% respectively. The other under management funds showed close to zero, but negative performance. Transactions concluded last week have intended to reach the set target weights for each of the positions in the portfolio......more »

Boncho Ivanov, portfolio manager