STOCK PRICES EDGE UP AT THE START OF 2022

Market Overview (03^rd January – 07^th January)

The main Bulgarian index SOFIX increased by 1.81% this week, up to 647.18 points. The broad index BGBX40 increased by 0.90% to 144.97 points. BGREIT decreased this trading week to 161.01 points, down by 1.81.

Corporate News       

The manufacturer of synthetic fibres Yambolen AD (YAMB), which has stopped its main production for years, will build a photovoltaic plant. With the proceeds from the sale of surplus electricity, the company plans to cover the accumulated losses from previous years. It is planned to design and build two photovoltaic installations – one on the roofs of buildings and one on the ground. The installed power is expected to be just under 10,000 kilowatt-peaks (kWp). The total value of the investment with VAT amounts to (BGN 14.42 million).

Trace Group Hold (Т57) will buy back up to 500,000 of its own shares. The start of the share repurchase procedure is January 6, 2022. The deadline is June 26, 2024. The stock price rose by nearly 16% along with the news.

Economic News                                                       

• Producer prices in Bulgaria advanced 31% YoY in November of 2021, from a 24.1% in previous month. prices rose for manufacturing (19.4%), electricity, gas, steam & air conditioning supply (70.5%), and mining & quarrying (12.5%).
• Business Confidence in Bulgaria decreased to 16.10 points in December from 16.80 points in November of 2021.
• Construction output in Bulgaria decreased 1.90% in October of 2021 over the same month in the previous year.
• Industrial production in Bulgaria increased 9.7% YoY in October 2021, the same as in the previous month. Output slowed for manufacturing and mining & quarrying percent vs 5.9 percent in September) and mining & quarrying (19.1 percent vs 20 percent) but quickened for electricity, gas, steam, and air conditioning supply.
• Retail sales in Bulgaria advanced 7.6% YoY in October 2021. pointing to the eighth monthly expansion in retail trade. Sales rose for both for food, beverages & tobacco (7.6%) and non-food products (7.4%)

Active COVID-19 cases in Bulgaria are on an increasing trend with a 7-day MA of 4,411 cases. The active cases at the end of the week were 128,857. The total number of fully vaccinated people so far is 1,942mln, which is 28% of the population in Bulgaria.

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