SOFIX EKES OUT SMALL GAINS

Market Overview (22^th November– 26^th November)

The main Bulgarian index SOFIX increased by 1.04% this week, up to 618.47 points. The broad index BGBX40 increased by 0.59% to 139.56 points. BGREIT increased this trading week to 165.81 points, up by 0.68%.

Corporate News                                                      

M+S Hydraulic (MSH) reports growth of 48% YoY to BGN 111mln in revenue for the consolidated first nine months of 2021. Similarly, the expenses have climbed by 40%, resulting in a 58% hike in the net profit to BGN 30mln.

Allterco AD (A4L) released its consolidated financial results for the first nine months of 2021. The revenue of the group has increased by 31% YoY to BGN 30mln. On the other side, the net profit for Jan-Sep has increased by 88% YoY to BGN 10mln. The largest mover in the operating expenses is the S&M costs which have increased by nearly 50% YoY to BGN 1.83mln.

First Investment Bank (FIB) published the consolidated financial statements for the first nine months of the year. The bank reports 8.5% growth in the net interest income to BGN 202mln; 22% growth in the net income from fees and commissions to BGN 88mln. In total, this represents 30% growth in the net profit to BGN 58mln. The capital adequacy ratio as of September 30 reaches 21%. The liquidity coverage ratio of the group is 2.45 and the net stable financing ratio is 1.39.

Stara Planina Hold (SPH) reports a growth of 37% YoY to BGN 208mln. Due to the surging commodity and electricity prices, the expenses for materials have increased by 35% but despite this, the operating profit has almost doubled to BGN 27mln.

Economic News                                                       

The Business Confidence in Bulgaria decreased to 15.20 points in October from 17.50 points in September of 2021, which was higher than the forecasted 13.7 points.

Active COVID-19 cases in Bulgaria are on a decreasing trend with a 7-day MA of 2,296 cases. The active cases at the end of the week were 105,292. The total number of fully vaccinated people so far is 1,755 mln, which is 25.26% of the population in Bulgaria.

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