SOFIX registered a 1.35 % weekly drop to 289.02 points, as in each of the last four sessions of the week ended in the red. Most appreciated of the index were the shares of CCB (+ 6.6 %) and Stara Planina Hold AD (3.7 %). For weekly decline the largest "contribution" had the reductions in Advance Terrafund REIT (-8.4 %) and Eurohold Bulgaria (-5.4 %). With losses of 1.64 % and 1.40 % finished BG REIT and BG 40. The turnover of BSE decreased to BGN 25.7 million in June and for the first half of 2012 amounted to BGN 236 million, decreasing by 15 % on annual basis. Transactions in turn reduced by 31 % annually until 5 404 for June 2012 and for January-June 2012 they are 30 192 or drop by 52 % YoY. In Bulgaria, the preliminary data in May 2012 showed that the index of industrial production calculated from seasonally adjusted data rose by 0.9 percent compared to April 2012, compared to corresponding month of 2011 calendar adjusted industrial production index registered an increase of 0.9 %.

The ECB lowered interest rates in the euro area by a quarter percentage point to 0.75 %, thus the institution wants to support the economies of the eurozone countries on the background of the debt crisis. This is the lowest value in the history of monetary union. Such a step had been taken also by the Bank of China, which lowered key interest rates in the country for the second time within a month. Moreover, banks were allowed to offer greater concessions in interest in lending. Annual interest on loans from the Bank of China will be lowered by 31 basis points to 6 %, while that on deposits - by a quarter percentage point. The yield on German medium-term government bonds  fell 2 basis points to -0.003 %, this being its first fall below zero by June 1. Reference yield on 10-year government bonds regestered a small change to 1.39 %, leaving 20 basis points below its level at the end of the previous week. Meanwhile, yields on 10-year Spanish government bonds rose 37 basis points, while the similar Italian bonds added 21 basis points.

Collective investment schemes managed by the "UBB Asset Management" reported declines, which were of smaller magnitude than declines in stock indices. 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