Market Overview (6th December – 10th December)

The main Bulgarian index SOFIX decreased by 1.79% this week, down to 613.34 points. The broad index BGBX40 decreased by 0.47% to 139.42 points. BGREIT decreased this trading week to 164.30 points, down by 0.38%.

Corporate News       

Zaharni Zavodi AD (ZHZA) reports a decrease of 5% YoY to BGN 98,469mln in revenue for the first nine months of 2021. The decrease comes from a fall of 22% in the sales of products to BGN 72,327mln. The net profit for the same period has fallen by 35% to BGN 4,5mln. The expenses for materials and external services have fallen but with smaller peace than the profit decline.

First Investment Bank (FIB) announced a program to issue bonds of up to 100m euros. The goal is to be recognized and included in the additional tier 1 capital of the bank. The minimum nominal value of one bond of the issues will be EUR 100,000, including the possibility of an additional investment with a step above this amount of EUR 1,000 or a multiple of EUR 1,000.

Economic News                                                       

The Bulgarian economy advanced 4.6% YoY in Q3 2021, much higher than initial estimates of 0.4%. Final consumption increased by 6.8%, whereas gross fixed capital formation continued to decline (-9.7%). Also, net foreign demand contributed negatively as exports surged 9.8% while imports soared at a faster 12.7%. Industrial production in Bulgaria increased 9.7% YoY in October 2021, the same as the previous month and marking the 8th consecutive month of growth in industrial activity. Output slowed for manufacturing and mining & quarrying but quickened for electricity, gas, steam, and air conditioning supply. Construction output in Bulgaria decreased 1.9% in October. Retail sales in Bulgaria advanced 7.6% YoY in October 2021. Sales rose for both for food, beverages & tobacco (7.6%) and non-food products (7.4%).

Active COVID-19 cases in Bulgaria are on a decreasing trend with a 7-day MA of 1,674 cases. The active cases at the end of the week were 97,575. The total number of fully vaccinated people so far is 1,839mln, which is 26.5% of the population in Bulgaria.

You can access the pdf file here.



The analyst (s) responsible for the preparation of this document shall ensure that: (1) they take all necessary care to accurately reflect the information contained in this document; (2) no part of the analyst’s remuneration is, has been or will be linked, directly or indirectly, to the recommendation or opinions expressed in this document.

Financial interest: Sofia International Securities may trade or own the financial instruments specified in this document. Sofia International Securities does not own more than 5% of the financial instruments in circulation, subject to analysis or comment in this document. The analyst (s) do not own any shares of the companies, unless explicitly mentioned.

Disclosure of information

Due care has been taken to ensure the accuracy of the facts cited, the reliability of the sources of information and the clear definition of the assumptions, predictions, forecasts and expected prices in this document. The information presented in this document is based on publicly available information, which is considered reliable, but for which no responsibility is taken for completeness and accuracy. Neither Sofia International Securities nor the company’s employees should be held responsible for the publicly available information used. The opinion expressed in this document may differ from the disclosed views in other departments and divisions of Sofia International Securities or from other employees. Additional information on this document is available upon request. The sources of information in the tables and graphs in this document are calculations by Sofia International Securities, unless otherwise stated.

Risks for investors

This document has been prepared and presented for the purpose of summary and informational purposes only and does not constitute a study within the meaning of Art. 13 of Commission Delegated Directive (EU) 2017/593 of 7 April 2016. The information in this document should not be considered as an offer to buy or sell financial instruments or an independent investment council within the meaning of Directive 2014/65 / EU of The European Parliament and the Council of 15 May 2014, Sofia International Securities AD has not assessed the appropriateness in relation to the financial instruments mentioned in this document. The investment opportunities discussed in this document may not be appropriate for certain investors depending on their investment objectives and time horizon or in the context of their overall financial condition. The risks associated with investing in the financial instruments mentioned in this document are not fully explained. The price or value of the investment may decrease or increase. Securities or investments can lead to losses for the investor. A previous achievement is not a guarantee of future performance. Changes in exchange rates may have an adverse effect on the value, price or return on investment in securities. Sofia International Securities AD assumes no responsibility for losses incurred in connection with investments made on the basis of information contained in this document.


The analyzes of Sofia International Securities are the exclusive property of the investment intermediary and any publication, distribution, reprinting and citation of content is possible only after the explicit written consent of the „Research and Analysis“ department of the company. It is not allowed to use the analyzes of the investment intermediary from a third party for commercial purposes.