Market Overview (11th October – 15th October)

The main Bulgarian index SOFIX increased by 0.53% this week, up to 574.94 points. The broad index BGBX40 increased by 0.35% to 133.17 points. BGREIT increased this trading week to 160.45 points, up by 0.14%.

Corporate News                                                      

Financial Supervision Commission (FSC) has approved the tender offers for the acquisition of 33% of the capital of “CEZ Distribution AD” and “CEZ Electro AD” from “Eurohold Bulgaria AD”. The transaction will amount to approximately BGN 230mln.

Zaharni Zavodi AD (ZHZA) has decided to increase the capital of the company from BGN 11.1 mln to BGN 11.8 mln by converting its convertible bonds. The conversion ratio is: one bond with par value of BGN 100 for 14 shares and hence the conversion price is BGN 7.143 per ordinary share.

Allterco (A4L) announced unofficial financial results for the first 9 months of the year. Its operating revenue has increased by 54.5% to BGN 37.8 mln. The company reports a growth of 61.7% from Shelly devices and a decrease of 18.9% from MyKi devices.

Economic News                                                       

The inflation rate in Bulgaria increased to 4.8% in September from 3.7%% in August of 2021. Bulgaria’s trade deficit widened to BGN 715.2 million in August of 2021 from BGN 441.5 million in the corresponding month of the previous year. Exports climbed 32.8% year-on-year to BGN 5525 million, as sales rose to both EU (26.5%) and non-EU countries (45.7%). Meanwhile, imports advanced at a faster 35.6% to BGN 6240 million, due to higher purchases from both EU countries (22.7%) and from other countries (56.2%).

Active COVID-19 cases in Bulgaria are on an increasing trend with a 7-day MA of 2,822 cases. The active cases at the end of the week were 60,485. The total number of fully vaccinated people so far is 1,385 mln, which is 20.12% of the population in Bulgaria.

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