BULGARIAN MARKET RECOVERS LOSSES AMIDST POSITIVE ECONOMIC DATA

Market Overview (August 6th – September 10th )

The main Bulgarian index SOFIX increased by 0.42% this week, up to 563.08 points. The broad index BGBX40 increased by 0.98% to 129.38 points. BGREIT also increased this trading week to 163.48 points, up by 1.29%.

Corporate News                                                      

Bianor Holding (BNR) released its consolidated financial results for the first half calendar year of 2021. The revenue of the group has decreased by 17.68% YoY to BGN 1.71mln. Meanwhile, the operating expenses have increased by 18.2 mainly due to a rise in labor costs. The company ends the period with an operating loss of BGN 395,000. In its financial statement, the company mentions that a significant portion of the revenue is still generated from a small number of large clients. The five largest clients are responsible for 97% of the whole revenue. It also announced that the development of the product business will lead to a higher revenue stream, resulting in weaker dependence from the large customers.

Telelink Business Services Group AD (TBS) confirmed that it will pay out over BGN 10.25mln dividend for the first half of 2021, which also is BNG 0.82 per share. During the previous trading week, the company’s stock soared nearly 13%. Currently, its dividend yield is approximately 5%.

Economic News                                                       

Bulgaria’s GDP rebounded by 9.9 percent from a year earlier in the second quarter of 2021, the highest for the past 30 years. On a quarterly basis, Bulgaria’s GDP edged up 0.6%, after a 2.5% increase in the first quarter of the year. Bulgaria’s industrial output rose 8.3 percent year-on-year in July of 2021, easing from an upwardly revised 10.5 percent increase in the previous month. Retail sales in Bulgaria rose 20.2 percent year-on-year in July of 2021, easing from a 22.7 percent increase in the previous month.

Active COVID-19 cases in Bulgaria are on a decreasing trend with a 7-day MA of 1,320 cases. The total number of fully vaccinated people so far is 1,090mln, which is 15.5% of the population in Bulgaria.

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