VOLATILE WEEK AMID INFLATION DATA

Market Overview (August 09th –August 13th)  

The main Bulgarian index SOFIX increased by 0.30% this week, up to 582.59 points. The broad index BGBX40 increased by 1.24% to 129.42 points. BGREIT increased this trading week to 165.33 points, up by 0.60%.

Corporate News                                                      

Telelink Business Service Group AD (TBS) announced that it plans to pay out over BGN 10.25mln dividend in September for the first fiscal half-year, representing BNG 0.82 per share.

Trace Group Hold AD (T57) announced that it plans to pay out over BGN 4.84mln dividend for the 2020 fiscal year, representing BNG 0.20 per share. This represents approximately a 30% dividend payout ratio and a 5.5% dividend yield.

Prime Property BG REIT (PPBG) published financial results for Q2 2021. The revenue from investment properties has increased by 26% YoY to BNG 24,000. On the other side, the operating expenses have slightly decreased by 6.7%, however are still high above the revenue – 13x more, resulting in a net loss of BGN -296,000. For the present, the company has good cash reserves of BGN 2.9mln.

Economic News                                                       

The inflation rate in Bulgaria for July is 3.0%, which came close to the forecasted. On the other side, the Trade Balance for June increased from May by 11% to BGN -808.7mln. For a fourth consequent month, the Retail Sales for July were positive, reporting a 23% rise YoY. The same goes for Industrial Production. It grew by 9.7% last month YoY.

Active COVID-19 cases in Bulgaria are on an increasing trend with a 7-day MA of 741 cases. The active cases at the end of the week are 14,734. The total number of fully vaccinated people so far is 1,070mln, which is 15.3% of the population in Bulgaria.

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