ANNUAL INFLATION RATE AT 12-YEAR HIGH IN BULGARIA

Market Overview (8^th November– 12^th November)

The main Bulgarian index SOFIX increased by 1.17% this week, up to 608.55 points. The broad index BGBX40 increased by 0.77% to 137.78 points. BGREIT increased this trading week to 165.47 points, up by 0.58%.

Corporate News                                                      

The holders of a total of 117 shares of CEZ Electro Bulgaria AD and 408,552 shares of CEZ Distribution Bulgaria AD have accepted the tender offer of the new majority shareholder Eastern Electric Company BV. Following the transfer, the company will increase its stake in CEZ Electro to just over 69% from the current 67% and will increase its stake in CEZ Distribution to over 88%.

Monbat AD (MONB) has released its financial statements for the first 9 months of the year. For the first nine months of 2021, the producer reports an increase in EBITDA by 27% YoY because of better volumes of sales. For the fourth quarter, the company expects a decrease in EBITDA by 7% respectively compared to the same periods in 2020 due to the increased energy prices. The battery manufacturer Monbat is working on innovative projects for the production of lithium-ion batteries, to reduce lead in traditional batteries and on an energy storage project.

Telelink Business Services Group AD declares its readiness to offer for sale on the BSE a majority stake of over 50% as of the beginning of 2022. The company will be looking for a strategic investor to accelerate its entry into new markets. Regarding the stated goal of the company in 2020 to offer up to 30% of the capital of the BSE, he commented that at the moment the selling shareholders see no grounds for a new tranche.

Economic News                                                       

The annual inflation rate in Bulgaria advanced to 6% in October of 2021, the highest since February of 2009 and above 4.8% in September. Upward pressure mainly came from food & non-alcoholic beverages (5%); housing & utilities (9%); and transport (19.7%). Retail sales in Bulgaria rose 8.4% year-on-year in September of 2021. It was the fifth straight month of slowing retail activity growth as sales rose less for food, beverages & tobacco, and non-food products, namely other retail sales in non-specialised stores and others. Construction output in Bulgaria rose 1% over a year earlier in September of 2021.

Active COVID-19 cases in Bulgaria are on a decreasing trend with a 7-day MA of 3,504 cases. The active cases at the end of the week were 113,229. The total number of fully vaccinated people so far is 1,623 mln, which is 23.36% of the population in Bulgaria.

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