Last week brought positive emotions to the investors, as both leading index Sofix and BG TR30 reported considerable for 2012 weekly increases by 2.43 % and 2.53 % respectively. With the highest turnover was the trade with the shares of Agro Finance REIT (BGN 13.6 million) and Corporate Commercial Bank (BGN 8.9 million). The other two indexes - BG REIT and BG 40 reported minimal changes. The economic situation in the country in July, slightly improved, reported NSI. The total business climate indicator rose by 1.1 points as by branches it account for  the following amendments: industry (1.9 points), construction (1.6 points), retail (1.4 points) services (-1.5 percentage points). NSI published also and housing statistics - the index of market prices of housing in the second quarter of 2012 versus the first quarter of 2012 was 100.2 %, ie average increase in market house prices was 0.2 %. The index of market prices of housing in the second quarter of 2012 compared to corresponding quarter of previous year was 97.4 %, ie average decrease in market prices is 2.6 %.

Across the ocean indices reported increases on the background of the optimism that the Fed and the ECB may take additional incentives to support the global economy. Economic news showed that consumer confidence in July was slightly better than expected, but is at its lowest level since the beginning of the year. It was also announced that the U.S. economic growth slowed to 1.5 % in the second quarter, as lower costs of consumers and businesses are heavily influenced the performance of the U.S. economy. Verbal support for the euro by the ECB President - Mario Draghi launch Asian indices on Friday, but failed to erase the declines of the previous days and they ended the week at minus. In the second quarter gross domestic product (GDP) of South Korea grew by 2.4 % YOY, which is the slowest pace for the last three years. As the main reason was indicated the weaker demand for Asian goods in Europe. Expectations of economists surveyed by Bloomberg was for 2.5 % growth.

Collective investment schemes managed by the "UBB Asset Management" reported increases, and leader for consecutive week proved to be UBB Premium Equity, which added 2.19 % to its value. 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