Last week stock exchange indexes have split into their performance. BG 40 and BG REIT reported increases but Sofix and BG TR30 - declines. All changes were less than half a percent. With the highest turnover in BGN were shares of Sopharma (2.040 million), Advance Terrafund REIT (1.590 million), Mountain Paradise Invest REIT (1.151 million) and Sofia BT (1.013 million). In Europe, the indexes reported almost three-percent declines on the background of rise in the debt burden - the combined debt of the euro area account for about 93 percent of gross domestic product in the region this year and is expected to rise to 94.5 percent next year, transmit AP. For comparison, in 2009 the debt/GDP ratio in the euro area was 80 %. Decreases, in a smaller scale, were also recorded in America, the main factor affecting negatively are the upcoming negotiations to overcome the so-called "fiscal gap" in the United States. Industrial production in the country in October unexpectedly fell by 0.4 %, after Hurricane Sandy hit northeastern states.

The Consumer Price Index for October 2012 to September 2012 is 100.3 %, ie the monthly inflation is 0.3 %. Inflation from the beginning of the year (October 2012 to December 2011) is 4.0 % and the annual inflation rate for October 2012 to October 2011 is 4.4 %. The average inflation for the period November 2011 - October 2012 compared with the period November 2010 - October 2011 is 2.8 %. At the same time, GDP in the third quarter of 2012 increased by 0.1 % in the EU-27 compared to the previous quarter. For the same period, GDP in Bulgaria also increased by 0.1 %. In the third quarter of 2012 compared to the previous quarter, the highest growth recorded Estonia - 1.7 %, Latvia - 1.7 %, Lithuania - 1.3 % United Kingdom - 1.0 %, Slovakia - 0.6 %, and Romania - 0.5 %, while the Netherlands, Portugal, Cyprus, the Czech Republic and Spain registered a decrease by 1.1, 0.8, 0.5, 0.3 and 0.3 %. Compared with the same quarter of the previous year seasonally adjusted data showed a reduction in GDP of 0.4 % in the EU-27. For the same period in Bulgaria, GDP grew by 0.5 %.

Three of collective investment schemes managed by UBB Asset Management reported small decreases while UBB Patrimonium Land increased by 0.02 %. Transactions concluded last week have intended to reach the set target weights for each of the positions in the portfolio....more »

Tihomir Nenov, risk manager