MARKET ENDS OCTOBER IN LIGHT GREEN

Market Overview (25^th October – 29^th October)

The main Bulgarian index SOFIX increased by 1.60% this week, up to 583.95 points. The broad index BGBX40 increased by 1.30% to 134.84 points. BGREIT increased this trading week to 163.11 points, up by 2.97%.

Corporate News                                                      

Speedy AD (SPDY) reports a 20.5% revenue growth YoY to BGN 152mln. for the first nine months of the year. The spike in oil prices hasn’t prevented the company from improving its net profit by 36% up to BGN 25mln. One of the main drivers behind its growth is still online shopping. Speedy’s stock price has advanced by 5.6% last week.

Advance Terrafund REIT (ATER) has released its financial statements for the first 9 months of the year. It reports a 3.3% growth YoY in the renting revenue up to BGN 5,137mln. Since the beginning of 2021, the company has generated BGN 58mln from sales of investment properties, 38mln of which were in the last 3 months. Thanks to that, the net profit for the period amounts BGN 15mln. which is nearly 4 times higher compared to last year results.

Neochim AD (NEOH) records a 17.4% growth in the operating revenue for the first 9 months of the year. Due to the rising price of natural gas, the operating expenses have also increased by 17%. The net income for have advanced to BGN 16mln, which is 20% higher YoY. Historically, the stock is undervalued due to the investors’ concerns on the soaring gas prices, as for the past 6 months, the market cap has shrunk by 33%.

Economic News                                                       

Producer prices in Bulgaria surged 20% YoY in September of 2021. It was the highest gain in producer prices since available records in 2001, as prices rose for electricity, gas, steam & air conditioning supply (39.5% vs 31.1% in August). On a monthly basis, producer prices increased 2.4%, slowing from a 3% rise in the prior month. Business Confidence in Bulgaria decreased to 15.20 points in October from 17.50 points in September of 2021.

Active COVID-19 cases in Bulgaria are on an increasing trend with a 7-day MA of 4,783 cases. The active cases at the end of the week were 96,797. The total number of fully vaccinated people so far is 1,511 mln, which is 21.75% of the population in Bulgaria.

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