The market capitalisation of the Bulgarian Stock Exchange (BSE) reached BGN 4.033 billion at the end of 2004, a 48% year-on-year increase. The market capitalisation to country's GDP ratio increased to 10.63% last year, compared to 7.91% for 2003, while the estimated gross domestic product of Bulgaria for 2004 comes to BGN 37.31 billion. Market capitalisation to GDP figure stood at 5.8% in 1999. The corresponding index in the developed countries seldom goes below 50%. In the USA it was 116.72% GDP as at September 30, 2004. BSE turnover doubled on the year to BGN 1.596 billion for 2004. Eurobank made the highest turnover as an entity on the bourse with its BGN 747 million deals. Investment intermediary Karol came first in terms of number of deals carried out for 12 months - 30,587. The blue-chip SOFIX index of the stock exchange has registered a 38% year-on-year jump.
Source: Pari (03.01.2005)

The state interest in the Bulgarian Stock Exchange JSC and the Central Depository JSC will be slated for privatization, according to a bill of amendments to the Public Offering and Securities Act, that has already been submitted to the National Assembly. The two institutions will be removed from the prohibitive list, the sales method will be determined by the Privatisation Agency.
Source: Standart (04.01.2005)

National maritime fleet Navigation Maritime Bulgare (NMB) has received a $10 mln credit from Germany's Nordbank. NMB will use the two-year Nordbank loan and $3.24 mln of its own money to refinance a credit borrowed from ING Bank which matured on December 20, 2004. In November 2004, NMB cancelled a bond issue that was to refinance some $60 mln in liabilities to the ING-Nordbank consortium. NMB rebounded from a loss of 27.7 mln levs in January-September 2003 to record a consolidated net profit of 37.8 mln levs in the first three quarters of last year. The non-consolidated profit of the shipper for January-September 2004 was 39.9 mln levs. The management of the company and the transport ministry have forecast a year-end net profit of 50 mln levs. NMB posted consolidated net sales of 289 mln levs in January-September 2004, down 25.2% year-on-year.
Source: Dnevnik (04.01.2005)

The Bulgarian Telecommunications Company (BTC) will be most probably listed on the privatisation segment of the Bulgarian Stock exchange on February 1, 2005. Auctions for 35% of the telecom's capital are very likely to start on that date, a knowledgeable source told the PARI daily. The start price per share will be set about a week earlier. An inquiry among market players shows that most of them expect the price to stand at about BGN 150 in compensatory instruments. Brokers confirmed earlier information that new foreign investors were eyeing the telecom and would bid for the stock through some of the leading investment intermediaries. If that happens, the prices of compensatory instruments will most probably top their par value.
Source: Pari (07.01.2005)

The Board of directors of the Bulgarian Stock Exchange (BSE) registered the Bulgarian Telecommunications Company (BTC) on the bourse's unofficial market. BTC's emission amounts to BGN 288.765 million distributed in some 8.250 million shares at a par value of BGN 35. The company received a code BTC. The trade in the position will begin when the privatisation of the company kicks off. Privatisation Agency (PA) is in a hurry with the sell-off process, PA's CEO Atanas Bangachev said. The initial price of a share is still unknown, but all the details are to be clarified by the end of the week, Bangachev said. The market BTC's share price to reach BGN 150. Influenced by the news for the BTC listing, compensatory instruments continued their rising trend, and kept breaking records. Their maximum price on BSE yesterday reached BGN 1.11, an increase of 5.84%. The average price of the three types of compensatory instruments traded in Bulgaria reached 108% of their face value. Compensatory instruments worth of BGN 7.0 million changed hands for the day. half of this volume was bought by the investment intermediary First Financial Brokerage. State owned-stake of 35% in BTC will be privatised against compensatory instruments on the Bulgarian Stock Exchange, according to the government's decision. This was the reason for the immense rise of these securities recently.
Source: Pari (12.01.2005)

The new stock exchange index BG 40 is starting on February 1, the board of directors of BSE-Sofia decided yesterday. The companies that will compose the index will be fixed on January 31. The index will include the 40 most liquid companies for the last 6 months. The method of calculation of the index will resemble that of Dow Jones. It is starting from 100 points and the 40 companies will contribute 2,5 per cent to its value each.
Source: Standart (12.01.2005)

The Bulgarian Stock Exchange (BSE) is preparing a change in the structure of the bourse markets, BSE trade and supervision director Manyu Moravenov said at a discussion organised by the PARI daily. The liquidity requirements towards companies trading on the official market will be raised substantially and a minimum liquidity requirement will be introduced for trade on the unofficial market. The issues that do not meet these criteria will be traded on a special registration market, which in essence will be over the counter (OTC) trade. Currently the proposals are being agreed with the Financial Supervision Commission (FSC). The aim of BSE's management is to leave only the best public companies on the official market. This is expected to clear the problem with the more than 100 low liquidity positions (about one-third of the listed companies), which do not trade in practice. The chairman of the Association of Industrial Capital, Vassil Velev, shares the opposite opinion and believes that will hardly be a solution. The problem lies in the very public status of companies and it will be preserved even if OTC trade is introduced. Therefore the association suggests that small companies should be delisted without a tender offer. At any rate, the bourse will lose these companies and delisting is better than liquidation. When the current stock market was created in 1996 many companies were obliged to become public. The requirements then were quite different and have aggravated since, Velev said. FSC chairman Apostol Apostolov agreed that was not fair, saying that in 1996 the companies were not properly acquainted with the obligations a public status gave. He proposed that small and low liquidity companies on the bourse should be delisted by means of quasi tender offer, which should stay open for six or 12 months.
Source: Pari (17.01.2005)

There are some 50 dead enterprises listed on the Stock Exchange. There is no one to show interest in them and no deals are concluded with their shares, the chairman of the Bulgarian Industrial Capital Association (BICA) Mr. Vasil Velev announced, citing data provided by the BSE for the trade in 2004. BICA has initiated amendments in the Public Offering of Securities Act that will allow the dead companies to be delisted from the public register making a tender-buy offer, which is currently obligatory. BICA’s chairman pointed Svinevadstvo-Stambolovo for example. The company does not have any pigs from 3 years now, but is still traded on the Bourse. Just the local giants such as Lukoil and Mobiltel make the tender-buy offers, he added.
Source: Monitor (20.01.2005)

The auction for BTC’s shares is starting at 6 a.m. on January 27. Offers will be accepted between 6 and 12 a.m. on January 27 and 28. A little after 12 a.m., the bids will be sorted in accordance with the rules of the sealed auction. The dealers submitted offers for BTC’s shares for compensatory instruments but not having the necessary number of compensatory instruments will be given some 30-45 minutes to 1 p. m. to sell their vouchers.
Source: Sega (21.01.2005)

Bulgaria’s deputy prime minister Mr. Nikolai Vasilev will visit the Bulgarian Stock Exchange today. Mr.Vasilev will attend a bourse session and get acquainted with the conditions under which 34.78 per cent from the shares of the Bulgarian Telecommunication Company (BTC) will be sold. The tender has been scheduled for January 27.
Source: Sega (24.01.2005)

There will be no price limits in trade with compensatory instruments on the stock exchange sessions on the 27 and 28 of January- the first two days in the privatization process of 35 per cent of BTC through the Bulgarian Stock Exchange. The bourse will invest the revenues from the tender in the creation of a derivates market, which will be the major priority this year. The trade system of BSE-Sofia was tested by the deputy prime minister Mr. Nikolai Vassilev and proved itself reliable.
Source: Pari (25.01.2005)

2 854 282 shares of BTC were sold for compensatory instruments at the first auction for company’s shares. 14 969 shares remained for the days to come. The low share’s price was BGN 212.00, and the high – BGN 502.00. The weighted average price, that all the market orders were implemented at, was BGN 218.64. After the auction’s end at the Unofficial market of BSE – Sofia JSC cash deals for a total of 7 352 shares were concluded at price of BGN 206 to BGN 297 per share.
Source: Capital market (28.01.2005)

Investors bought a 34.6% stake in Bulgarian Telecommunications Company (BTC), or 99% of the shares put for sale for the day, for some BGN 624 million in compensatory notes in the largest ever privatisational deal on the Bulgarian Stock Exchange yesterday. Some 15,000 shares will be put for sale on today's auction. A total of 2,854,282 BTC shares was sold at an average weighted price of BGN 218.64, the lowest accepted price being BGN 212. The highest amounted to BGN 502. The minimum price at the auction was set at BGN 100 per BTC share. Before the auction investors expressed their main fear that the price may exceed BGN 300. Ten foreign investment funds have bought shares in BTC, minister of transport and communications, Nikolay Vassilev said after the end of the auction. Representatives of the investment intermediary EIBank, which bought 2,102,355 shares, or a 25.5% stake, said it carried out the deals for more than 20 large investment companies from the USA, Great Britain, as we as from other European countries. ING Bank was the second largest buyer for the day with 217,271 shares bought, or a 2.63% stake. Bids from 58 investment intermediaries were accepted. Secondary trading in BTC stocks on the bourse started immediately after the tender's end. At the beginning, the price stood at BGN 206 a share which rose to BGN 280 at 1300 hours local time at the bourse's close after having marked an intra-day high of BGN 297. BTC thus made a 8.9% rise for the day as compared to the average price a share at the auction. The company has already a market capitalisation of BGN 2.45 billion (around EUR 1.25 billion).
Source: Pari (28.01.2005)

Bulgaria's Stock Exchange market capitalisation increased by 60% to nearly BGN 6.5 billion after Bulgarian Telecommunications Company (BTC) was listed on it. The market capitalisation-to-GDP ratio hit 17.4% at an estimated 2004 gross domestic product of BGN 37.31 billion. In 1999 the figure was only 5.8%. 'Local capital market entered its mature age,' chairman of the Sofia Stock Exchange's board of directors, Bistra Ilkova, said after the largest ever privatisational tender on the bourse that took place last Thursday and Friday. Investors bought 2,867,888 shares of BTC for more than BGN 600 million in compensatory notes. Only 1,353 of the company's stocks remain for sale today. The maximum price per share reached the inconceivable BGN 1,104, with the initial price at BGN 100. Meanwhile, some 30,000 Telecom's shares changed hands on the secondary market where the maximum price hit BGN 360. Company's market capitalisation thus reached BGN 2.5 billion and representatives of the stock exchange started mulling over a method to incorporate BTC in the bourse's blue-chip SOFIX index. Up to now, the leaders in terms of market capitalisation, LUKoil and Petrol AD, show a capitalisation of not more than BGN 350 million. Bulgarian Stock Exchange will use the funds raised through the organisation of the tender for setting up derivatives market - an event that has been long awaited and which is expected to increase local bourse's liquidity.
Source: Pari (31.01.2005)

The new index BG 40 starts today. Its figure-out methodology is similar to the US index Dow Jones where the companies’ shares participate with an equal weight, Bulgarian Stock Exchange announced. The 40 companies in the index will be updated every 6 months. If a company does not meet the liquidity requirements, a company with higher liquidity shall replace it. The index starts at the basis value of 100 points and all the 40 companies will participate with an equal weight of 2.5 per cent when determining its value.
Source: Monitor (01.02.2005)

Bulgaria’s Privatization Agency (PA) will float shares from another 181 companies on the Stock Exchange. The sell-offs will be a part of the tenth centralized public auction. 25 companies will be offered against non-monetary payment means, 147 of them – against money. Combined payment will be possible for nine of the companies.
Source: Sega (04.02.2005)

Navigation Maritime Bulgare (NMB) generated a net profit of BGN 44.6 mln for 2004 versus a loss of BGN 51.1 mln in 2003. The fleet’s net sales revenues increased by 32.4 per cent up to BGN 369.1 mln in 2004, versus BGN 278.9 mln in 2003. For 2005 70 per cent of the company’s capital are expected to be sold to a strategic investor, and the remaining 30 per cent will be offered for sale against compensatory instruments through auctions held on BSE – Sofia.
Source: Monitor (04.02.2005)

Wiener Borse AG, the Vienna stock exchange, is working out a strategy for the integration of Southeastern Europe’s capital markets. The purpose is a "critical mass" to be accumulated, the exchange head Dr. Michael Buhl said. Last year the company acquired 68.8 per cent of the Budapest exchange. Talks on the buyout of the Warsaw exchange are being held now. The next step includes the markets in the Czech Republic, Slovakia, Slovenia, Romania, Bulgaria and Croatia.
Source: Standart (10.02.2005)

The Vienna Stock Exchange (VSE) is preparing a strategy for the uniting of Eastern Europe’s stock markets. The goal is to accumulate “critical mass”, VSE’s director Mr. Michael Buhl said. Last year the Vienna-based company acquired 68.8 per cent of the Budapest stock exchange. Currently, negotiations are being held for the acquisition of the stock exchange in Warsaw. The next step would be the markets in the Czech Republic, Slovakia, Slovenia, Romania, Bulgaria and Croatia.
Source: Standart (11.02.2005)

Fixed-line phone operator, Bulgarian Telecommunications Company (BTC) raised its stake in the radio mobile firm Mobikom to 100% on after buying the last 12% minority stake in it, Stock Exchange representatives said. BTC acquired the stake from state-owned Radio Electronic Systems. On February 2, 2005, BTC bought 49% in the mobile firm from British telecom operator Cable & Wireless, raising thus its stake in Mobikom to 88%. Financial details of the move was not then disclosed, but according to a British information agency, the cost of the deal came to some EUR 10.5 million. All Mobikom's subscribers will continue using the company's services at unchanged conditions. U.S. private equity house Advent bought a 65% stake in BTC from the state last year.
Source: Pari (11.02.2005)

The Privatization Agency adopted the annual list for the commercial companies with a state-owned share of their capital in which privatization procedures payment with non-financial resources is allowed in 2003. Among the companies is also PS Group JSC – Sofia (Pirgos Art JSC that merged Zavodski stroeji JSC - Sofia).
Source: State Gazette (11.02.2005)

The return of the investment companies in Bulgaria for 2004 varied between 10.31 and 38 per cent, data of the Bulgarian Association of the Managing Companies show. Seven open-end investment companies have been registered in the country. Their shares can be easily sold as the companies offer buy-back prices every day. These shares are traded on the stock exchange and can be bought over the counter in the offices of the managing companies. Nadezhda and Industrial Fund PLC are closed investment companies. They are not obliged to announce buy-back prices every day but their shares sell on the exchange.
Source: Standart (14.02.2005)

The market capitalization of local companies, traded at the Bulgarian Stock exchange, reached BGN 7.84 bln, after BTC shares were floated on it. The telco’s market evaluation reached BGN 2.723 bln, which increased the public companies’ assets by 53.2 per cent. Prior BTC’s exchange privatization, the stock exchange's market capitalization was BGN 5.12 bln.
Source: Novinar (14.02.2005)

The central public auction is beginning of February 21 and will continue until March 4. The list of companies to be privatized through central public auction and their parameters are published on the stock exchange’s official website: http://www.bse-sofia.bg/download/SpisakCPT10.xls. The information prospects of the companies may be found at: http://www.bse-sofia.bg/download/upt.
Source: Pari (14.02.2005)

Nearly 1 million shares of BTC are not listed at the Bulgarian Stock Exchange, despite the telco is a public company as of November last year, and the position has been traded at BSE as of January 27. It concerns 957 638 telco’s shares, this is the issue of the capital increase performed in last year’s June. The inquiry was included in the privatization contract. Indeed the situation looks as follows: BTC has three securities issues listed on the Central Depository: main issue - 7 292 789 shares; second issue of the increase - 957 638 shares, and third one – single state-owned share, Mr. Vassil Golemanski of the Central Depository explained. Although all the BTC’s capital is considered to be listed on the Stock Exchange, in fact just the big issue is traded there.
Source: Pari (16.02.2005)

Almost 1000 per cent profit may be realized by investors in Eztour JSC, became clear following the share tender offer published by the company yesterday. The offer of the majority shareholder stands at BGN 6 per share. 14.7 per cent of the company were floated at BSE’s privatization segment in July last year. They were bought up at a price of BGN 3.14 per share in residential compensatory notes.
Source: Pari (18.02.2005)

The BGN 4-mln bonds issued by the Shoumen municipality were fully subscribed in two days by Raiffeisenbank Bulgaria and Elana Finances. The subscription started on February 14 and finished on February 16. The two buyers picked up 2,000 bonds with nominal value of BGN 1,000 each, worth a total of BGN 4 mln. The coupon of the five-year bonds was fixed at 8.7%. The issue, which raised money for civic infrastructure projects, was collaterised only with the revenue flows of the municipality.
Source: Monitor (18.02.2005)

The creation of a regional stock index was on the agenda of the conference held in Sofia by the Federation of Euro-Asian Stock Exchanges. The proposed index will track the market performance of the region's top corporates and could be marketed to interested analysts, said Bulgarian Stock Exchange-Sofia executive director Mr. Georgi Draichev. The idea is not a tune-up for a merger of all regional bourses but rather to align trading rules and the rules for the listing of companies, Mr. Draichev said.
Source: Dnevnik (21.02.2005)

43.2 per cent of the capital of Balkancar-6 Septemvri JSC were sold for BGN 2,000,100. This happened to be the biggest deal for the first day of the 10th Centralized public auction. The low price was BGN 2 mln. Payment for the total amount of BGN 3.6 mln were contracted at the auction, BGN 2.47 are cash, and BGN 1.13 mln – in investment vouchers. The state participation in 57 companies was totally sold, and in another 16 – partially. A total of 181 state-owned companies will be offered at the auction, which will continue until March 7. Some of the companies, the minority stakes of which were sold yesterday, are Lead and Zinc Complex-Kardjali JSC, Park-Hotel Moscow JSC, and Umicore Med JSC.
Source: Standart (22.02.2005)

Shares from 19 local limited liability companies will be traded at Bulgaria’s Stock Exchange between March 2 and March 17 this year, Privatization Agency (PA) announced. 10 of the companies will be offered against non-monetary payment means, and 9 – against cash. 9 majority stakes and 10 minority ones will be offered at the eighth remote public auction.
Source: Standart (23.02.2005)

Bulgaria already has a strategy for development of the equity market, following an approval of the Bulgaria Stock Exchange (BSE) board of directors. Its consists of analysis of the capital market current state and a strategy for its further development. Despite the initial plans the document will not be published. Instead of this, the bourse will prepare a summary of the text which will be disclosed in two week's time. It is still unclear why the stock exchange decided not to publish its strategy, but according to BSE's board of directors' chairwoman, Bistra Ilkova, the reason is that it contains too much insider information. There are some instances of criticism and examples of certain weaknesses of BSE operations which may have caused the decision, experts who have read the document explained.
Source: Pari (25.02.2005)

From 70 up to 100 million of compensatory vouchers may be spent on the privatization of 30 per cent of Navigation Maritime Bulgare (NMB). The NMB’s privatization strategy will define if the canceled restitution securities will be sold at the high or the low border of the frame, the chairman of the National association of the compensatory instruments owners Mr. Valentin Hristov announced. The key point is whether the Government is to sell firstly the 30 per cent stake through the Stock Exchange or this will happen after NMB finds a strategic investor for 70 per cent of its capital. The compensatory owners should prefer the second variant as it has a lot of advantages, Mr. Hristov commented. The privatization of TPP Varna and Bobov dol, and Rousse Heat Supply Company is also expected at the Stock Exchange. The minority stakes of the companies of the armoury complex are expected at BSE as well.
Source: Monitor (28.02.2005)

27.9 per cent of Balkancar Zarya – Pavlikeni were bought up through the stock exchange at a total price of BGN 260 000. Shares in 55 companies were offered yesterday within the frames of the tenth centralized public auction. 14 deals for shares in 12 companies were concluded. Their total value is BGN 677 000. 4.75 per cent from the capital of Bitova Technica – Veliko Tarnovo were sold at a price of BGN 143.5 000 against investment bonds.
Source: Standart (01.03.2005)

Next week, TBI JSC will announce the first index for government securities, the company announced. The data for the index’s rate will be accessible for all the interested and will be free. Bulgarian Stock Exchange already has two indexes – SOFIX and BG-40, while there is no index for the bond market, and particularly for its biggest segment – the government securities market, the company pointed. According to Bloomberg, the investments in government securities on markets as Bulgaria and Romania become more and more attractive for the western European investors.
Source: Monitor (07.03.2005)

A total of 16.3% of investors plan to change their intermediary on the bourse, according to a poll carried out at invest.start.bg and stock.start.bg. Every third of the respondents is attracted by brokers with low commission rates, while 28.8% - by brokers that offer free COBOS. Only 11.9% have a relish for intermediaries offering fast and high-quality front office services. The proportion of investors who use their personal knowledge of the broker and the investment consultant to select them is quite high, which is understandable since many investors exchange information about their intermediaries between each other.
Source: Pari (07.03.2005)

The first index, which shows the dynamics of the state securities market in Bulgaria started working. It has been created by "TBI" and is called "TBI" (Treasury Bond Index). It will be announced daily at about 06:00 p.m. The index has been calculated since June 30, 2004. For less than a year, until March, 7, its value has gone up to 109,17%. It is forthcoming that funds, whose profitability will be equal to the index ups and downs, be set up. "The people will understand that bank deposits are an extremely simple financial instrument", head of "TBI Asset Management" Stoyan Toshev stated.
Source: Standart (09.03.2005)

The international banks that have subsidiaries in Germany share the idea of establishing a pan-European exchange trade platform, after Deutsche Boerse withdrew its bid for London Stock Exchange, foreign banks' federation in Germany said. According to the federation this will give the sector a great chance. Gathering "under one roof" of major European markets as Euronext, Deutsche Boerse and the London Stock Exchange will be in favour of the most liquid companies.
Source: Dnevnik (10.03.2005)

Doverie Voluntary Pension Fund (VPF) will stop investing in shares of companies listed on the BSE-Sofia because it has topped the statutory maximum of 10 per cent of the funds invested, the Financial Supervision Commission (FSC) announced. As on February 24, the shares in Doverie Voluntary Pension Fund's portfolio totalled 10,76 per cent. Doverie Pension Insurance Company (PIC) that manages Doverie VPF has advised the FSC that the excess above the 10-percent limit came as a result from the rising of stock prices on the BSE-Sofia. According to the estimates of Doverie PIC, the increase of Doverie VPF's total assets in the next 180 days will extinguish these 0,76 per cent of the assets.
Source: Monitor (11.03.2005)

A client of a Varna-based mediator paid BGN 801 560 in non-monetary instruments for 99 per cent from Mesokombinat Sofia SP Ltd. The 78 333-share stake was offered at a privatization segment of the stock exchange as a part of the eighth remote auction. The state-owned stake in Novi Starosel – 03 was also bought up at the auction BGN 26 850 were paid for 100 per cent from the company’s capital.
Source: Dnevnik (14.03.2005)

A stake of 89 004 shares from Stomaneni Trabi JSC – Septemvri, will be offered at a mixed closed auction at the Bulgarian Stock Exchange. The stake, representing 8.62 per cent from the capital of the company, will be sold by the investment mediator Euro Finance. The shares will be offered in three lots, each including 29 668 shares, or 2.87 per cent from the company’s capital. Investors will be able to bid for the whole lot, where the limit price fixed by the seller is BGN 222 510 for one market lot.
Source: Dnevnik (16.03.2005)

The Privatization Agency (PA) will float a 35.78-per cent stake in Arsenal JSC - Kazanlak for non-cash instruments - compensatory notes and investment bonds and the stake will be put for sale as a single package with an initial price of BGN 54.89 million. The sale will take place during the next centralized public auction on the Bulgarian Stock Exchange. At the same centralized public auction, PA will offer for sale 100 per cent in the heating company of Lovech for money. Minority stakes in three companies of Balkancar group will be also offered there.
Source: Standart (22.03.2005)

Yesterday the UK regulative bodies announced that they were going to send both the offers for the buy up of London Stock Exchange /LSE/ to the Office of the local competition for a profound investigation, concerning the anti-monopoly legislation, Reuters announced. This step is likely to delay with another few months the anyway protracted purchase process. Last December the German Bourse operator Deutsche Boerse offered 530 penny/ share or GBP 1.3 bln or EUR 2.43 bln for the Europe’s leading financial market.
Source: Monitor (30.03.2005)

Amendments in the Public Offering of Securities Act passed at first reading provide for the establishment of an investors' indemnity fund. The fund shall indemnify the clients of the investment intermediaries when the latter are not able to do that. Every investment intermediary that holds clients' money and securities shall make contributions to the fund. The fund will guarantee clients' assets up to BGN 40,000. The bill introduces also a new scheme for joint investment in securities - a contractual fund. It is not a legal entity but a separate property for joint investment in securities of funds raised through public offering of shares. The requirements for the investment intermediaries' capital will be tightened too.
Source: Sega (31.03.2005)

The Bulgarian Stock Exchange – Sofia will be able to distribute dividend following its privatization.
Source: Dnevnik (31.03.2005)

Trade in shares of the Bulgarian Telecommunications Company (BTC) generated 21.3% of the turnover on the Sofia Stock Exchange, according to data provided by the bourse management. A total of BGN 119.7 million worth of BTC securities have been traded on the regulated market so far, which formed a total turnover of BGN 561.5 million. In terms of the trade volume, the company thus occupied the first place, ahead of the ex-leader - the compensatory notes. Block deals have been excluded from the calculations.
Source: Pari (01.04.2005)

The privatization of 35.78 per cent of the capital of Arsenal JSC will be canceled, BSE announced. A week ago the PA announced that the stake was to be traded at the 11th Centralized Public Auction expected to happen in April. The initial price was BGN 54.98 mln.
Source: Standart (01.04.2005)

Bulgarian Stock Exchange (BSE) of Sofia will raise its capital 11-fold: from BGN 293,393 to BGN 3,227,323, it emerged on Friday. The bourse will use its retained reserves for the capital increase. The raise will be approved by a general shareholders' meeting on May 17. The 2004 profit will be used to cover BSE's 2001 loss and for the reserve fund. BSE and the Central Depository are considering a joint venture, which will deal with design and maintenance of information products and systems related to the securities market. The bourse, however, declined to specify the projects. The capital of the venture will be BGN 80,000.
Source: Pari (04.04.2005)

BSE – Sofia will hold today an auction for the sale of the rights of Benchmark Real Estate Investment Trust JSC – Sofia, for which there are no shares underwritten. The auction will take place within a Stock Exchange's session, as 118 322 rights will be traded. Each right allows the owner to underwrite 11 shares with an issue value of BGN 1. The underwritten amount should be transferred under company’s raising account until April 18.
Source: Monitor (04.04.2005)

The three pension funds, managed by DZI - Pension Insurance, have been given a deadline to the end of April to bring their assets in compliance with the restriction for investing in shares up to 10 per cent of company’s assets, Financial Supervision Commission (FSC) announced. A letter sent by DZI - Pension Insurance to the FSC says that the company will offer a part of its shares depending on the BSE – Sofia’s quotes. Doverie - Voluntary pension fund has also exceeded the limit by 0.76 per cent.
Source: Monitor (05.04.2005)

A new index of the emerging markets, including the risk of investing in Bulgaria, started yesterday at the New York Stock Exchange, Reuters announced. The diversified CDX Dow Jones index will report the charges for protection against credit default for a basket of 40 countries and companies, the agency announced. The basket includes countries like Brazil, Bulgaria, and China.
Source: Monitor (05.04.2005)

Bank Austria Creditanstalt has rushed to form profit of the shares of DZI Bank bought on March 11 at the price of BGN 2.5 per share. 17 282 shares were sold yet in the next day through deals at Bloch segment at the price of BGN 5.38 per share. Yesterday BSE – Sofia JSC made an announcement for the sale.
Source: Monitor (06.04.2005)

The Internet media company Web Media Group is considering to initiate the fourth initial public offering (IPO) on the Bulgarian Stock Exchange (BSE). The Financial Supervision Commission has received a document, which it has to approve, giving thus green light to the project. The main shareholder in Web media Group is Hiron-91 SPLTD of the Razvitie corporation's CEO Alexander Alexandrov. The entity has been set up with a share capital of BGN 710,000 and plans to double it through the IPO move. The new entity was registered on March 8, 2005 and owns the websites: news.bg, finance.news.bg, and topsport.bg.
Source: Pari (07.04.2005)

Web Media Group is going to make an initial public offering (IPO) of its shares on the stock exchange, the company said. Yesterday the prospectus was submitted to the Financial Supervision Commission (FSC). The company is planning to offer 710,000 shares and if they are fully sold the capital will be increased to BGN 1.42 mln. BenchMark Finance JSC and ABV-Investments SPLTD are the investment intermediaries in charge of the IPO. This will be the fourth IPO on the Bulgarian Stock Exchange - Sofia. Hiron-91 SPLTD is the majority shareholder in Web Media Group holding 99.71 per cent of the capital (708,000 shares) and Variant ABV JSC holds the remaining 2,000 shares (0,29 per cent). Sofia City Court entered Web Media Group in the companies' register on March 8, 2005.
Source: Monitor (07.04.2005)

The local capital market is about to bid farewell to two more public companies, as they are to be delisted of the public register. Yesterday the Financial Supervision Commission (FSC) permitted the buy-tender offers to the shareholders in Lukoil-Neftochim and Bentonite JSC. The reason is that both companies’ majority shareholders declared their preliminary intentions to delist them of the register, if, of course, the shareholders agree.
Source: Pari (15.04.2005)

In 2004, again, Karoll reported the highest number of deals concluded on Bulgarian Stock Exchange (30 587), and Economic and Investment Bank is the leader in lots’ number (393.247 mln). Ug Market and Beta Corp are included in the top 3 by number of deals, and Capman and Eurobank follow EIBank by lots.
Source: Monitor (18.04.2005)

Finmetals Holding, the owner of a 71% stake in Sofia-based metallurgical plant Kremikovtzi, has signed a preliminary agreement with by Global Steel Holdings Ltd (GSHL) to sell itself to the Indian company, the Bulgarian stock exchange said on Tuesday, April 19. The transaction should be completed within the ensuing 60 days provided that all commitments undertaken with the preliminary agreement are met. The Post Privatisation Control Agency has imposed in injunction on the bank accounts and some movable and immovable property of the metallurgical plant at the request of the Customs Agency, the environment ministry and the National Social Security Institute (NSSI). Therefore the only option to change the ownership of the majority stake in Kremikovtzi was for Finmetals Holding to sell itself. Kremikovtzi and Finmetals Holding withheld further details about their agreement before the deal is completed. GSHL, controlled by the Mittal family, said in March 2005 that the deal was conditional on changes in the Kremikovtzi supervisory and managing boards. According to the press release, the talks for the acquisition of the majority stake was wrapped up in February 2004 with the signing of an agreement to buy out Finmetals Holding.(
Source: Dnevnik (20.04.2005)

Bulgaria’s Privatization Agency (PA) registered a turnover of BGN 144 000 at the 11th centralized public auction. The auction started on April 11 and ended yesterday. 1 majority stake was sold completely (Toplofikacia – Lovech). 40 minority stakes were also sold.
Source: Standart (22.04.2005)

All the companies in which the sate-owned stake exceeds 50% will be bound to present financial reports every three months to the Financial Supervision Commission. The annual financial statement will have to be an audited one, according to the changes envisaged in the text of the recently passed Public Offering of Securities Act. The move will thus make the requirements set to the state firms equal to that for public companies listed on the bourse. The parliament also approved the setting up of a guarantee fund for protection of investors in securities, that will secure 90% of the investments, but for sums that do not exceed BGN 40,000. The fund will raise money from the fees paid by the investment intermediaries. These sums were reduced and from now on will account for up to 0.5% of the clients' assets an up to 0.1% of their securities. Public companies will be also the firms that have more than 10,000 shareholders. The idea for simplified delisting procedure for small and low liquidity companies was not accepted.
Source: Pari (25.04.2005)

Individuals that report quick profits from trade in shares on the stock exchange will be taxed. The new Personal Income Tax Act, drafted by the tax administration, stipulates this. Tax will not be paid if a year has passed between the purchase and the sale of the shares, the bill stipulates. Thus if one buys securities and a few weeks or a month later sells them at a higher price, he will have to pay tax over the money profited. Currently no charges are paid over the bourse deals.
Source: Standart (25.04.2005)

Navigation Maritime Bulgare (Navibulgar) reported BGN 11.763 mln first quarter profit, the company's financial statement submitted to the Bulgarian Stock Exchange revealed. The firm achieved revenues of BGN 87 mln from rendering of services only.
Source: Standart (26.04.2005)

The National Assembly gave a green light to the privatization of the Bulgarian Stock Exchange JSC and the Central Depository JSC, after the adoption of the amendments in the Public Offering of Securities Act Tuesday. The state stake in the two companies will be excluded from the forbidding list at the Privatization Act. PA is expected to launch a privatization procedure shortly following the publishing of the act in the State Official Gazette.
Source: Pari (28.04.2005)

Bulgartabac Holding reported a first quarter loss of BGN 1 191 000, compared to a profit of BGN 782 000 y/y, the non-consolidated report presented to BSE – Sofia showed. The net revenues from sales decrease to BGN 4,952 mln, as they were BGN 6.035 mln in the first quarter of 2004. The financial revenues increased from BGN 202 000 up to BGN 1.108 mln.
Source: Dnevnik (29.04.2005)

Local investment intermediary Fininvest has sent a letter to the shareholders of BSE – Sofia (ministry of finance is the biggest shareholder controlling a stake of 44 per cent), stating the decision made by BSE’s Board of Directors to temporarily remove the company from the exchange trade was illegal.
Source: Banker (09.05.2005)

Bulgaria's Privatisation Agency (PA) will offer 63 packages of shares at the 12th centralised public auction. Offering will begin on the sixth day after the announcement is published in the Official Gazette and will finish on the 14th day. Eighteen companies will be sold for non-cash means of payment, 43, for cash. Combined payment is envisaged for two enterprises. The companies will be sold on the privatisation segment of the Bulgarian Stock Exchange. At the previous public auction, all the packages offered for non-cash instruments were sold on the very first day. The high interest in compensatory instruments raised their price to 69% of par.
Source: Pari (11.05.2005)

Only 3 000 physical entities have taken part in the exchange trade in 2004. All of them played on the market using the services of exchange intermediaries. This became clear during a discussion “The Future of Capital Market in Bulgaria” organized by the Club of Journalists AAA. The idea of levying a tax on revenues from shares, traded at the stock changes for a period shorter than a year, caused arguments among participants in the discussion.
Source: Standart (12.05.2005)

The residual 33-per cent state-owned stake in all 7 local electricity distribution companies (EDCs) will be listed on the stock exchange, deputy prime minister Mr. Nikolai Vasilev said during a discussion on the future of Bulgaria’s capital markets. The government is also planning to sell its 30-per cetn minority stake in Navigation Maritime Bulgare against compensatory notes, as well as a minority stake of the freight unit of local railway carrier BDZ following the company’s split into separate companies.
Source: Monitor (12.05.2005)

The Financial Supervision Commission (FSC) has allowed insurer Allianz Bulgaria Life to invest USD 1 million insurance reserves in eurobonds issued by the Russian Federation. The company will have to submit monthly reports to the FSC about the volume of bonds, the issue, the par and market value of the bonds. The FSC licensed three new insurance brokers: Vip Brokers, Correct-Ins and Classic Services. The supervisory also approved the new members of management bodies of eight insurance companies and four new actuaries of insurance companies.
Source: Pari (12.05.2005)

Bulgarian Stock Exchange will increase its capital tenfold up to BGN 3,227,000. Now it is BGN 293,000, the manager of the company Mr. Georgi Draichev said after the general meeting of the shareholders yesterday. The increase will be fulfilled through the transformation of capital reserves into stock, as the company will issue 10 new shares for every current share. The Exchange and the Central Depository will establish a joint venture that will merge their IT departments. The capital of the new company will be BGN 80,000.
Source: Standart (18.05.2005)

A.V. Buildings, a company created to invest in and market residential and office buildings, will be listed on the Bulgarian stock exchange after the secondary public offering of the firm was oked by the nation's financial regulator. The company's lead-off project is the Alfa R 3,000 sq m residential development located near the Mladost borough in southeastern Sofia. The 2.75 mln lev community, under development since end-'03, will be completed by July.
Source: Dnevnik (20.05.2005)

Transcard, the non-banking issuer of the eponymous credit cards, may soon go public on the Bulgarian stock exchange, plugged-in capital market sources said. The company has probably already submitted an IPO prospectus for consideration to the Financial Supervision Commission. Informed sources said Transcard does not yet have any plans to raise cash on the capital market which means the listing of the company will not be accompanied by a capital raise. The shares of the company have already been registered by the Central Depository JSC, the local organisation providing settlement of book-entry corporate securities, a mandatory step towards the stock market listing. Trancard's capital of 5 mln levs is divided into as many shares with a nominal value of BGN 1 each. According to electronic registrar Daxy, Transcard is co-owned by Sistek Holding and Petrol Holding with 50% each. Transcard issues retail and corporate credit cards which are accepted at over 4,000 commercial outlets nation-wide.
Source: Dnevnik (26.05.2005)

Lukoil-Neftochim Bourgas' consolidated net sales revenues increased up to BGN 91.118 mln in the first quarter of 2005 compared to BGN 82.869 mln in the same period last year, showed the company’s report. Company’s operating expenses grew to BGN 81,737 mln from BGN 75,410 mln. Financial expenses increased more significantly – up to BGN 12,960 mln.
Source: Monitor (30.05.2005)

The Financial Supervision Commission (FSC) permitted the capital increase of Benchmark Real Estate Investment Trust. The issue’s increase has already been registered at the Bulgarian Stock Exchange for trade at the Unofficial market. The issue may be traded starting of today. After the increase the company’s capital grew from BGN 650 000 up to BGN 7.8 mln.
Source: Monitor (31.05.2005)

A 11.96% stake in Fazan JSC of Rousse, consisting of 38,387 shares, will be placed for sale at a closed mixed auction on the Bulgarian Stock Exchange (BSE), bourse representatives said. The limited price per share is BGN 5.80. The initial date of the public offering is June 6, while the last has been set to July 1. Investment intermediary of the deal is Aval In JSC. Fazan reported a consolidated profit of BGN 143,000 for the first quarter 2005, against BGN 123,000 for the corresponding period last year. Fazan'a share capital comes to BGN 390,992, 71.73% of which are controlled by Stara Planina Holding.
Source: Pari (01.06.2005)

On June 8 Bulgarian Stock Exchange will start the 12th centralized public auction for the sale of residual state stakes of privatized companies, the Privatization Agency announced. The residual stakes of 63 companies will be offered at the auction, as some of them are of the Balkancar’s system. These are Balkancar-ZP T.Petrov JSC, Balkancar-ZPDEA G. Kostov JSC, and Balkancar-Iskar JSC.
Source: Novinar (01.06.2005)

The end of the mass privatization here will be put on June 30, when the validity of the privatization bonds owned by the citizens expires. The bonds may be auctioned on the bourse or against them, shares in state-run companies and businesses may be acquired at a centralized auction offered by the Privatization Agency. The new in a row and last for the time being such auction starts on June 7 and will last till June 20. Residual packages of 63 state-owned companies and businesses will be put to auction with those of 3 businesses of the Balkancar Holding being the most attractive. At present, the unused investment bonds total BGN 72.1 million, according to a report of the COBOS system of the Stock Exchange of end-May. The validity of the bonds has been extended several times over the years. The MPs, however, were short of time before Parliament was dissolved and failed to re-adopt the respective provisions of the Privatization Act, so in a month time the bonds will no longer be legal tender.
Source: Standart (03.06.2005)

On the first and second day of the three-day mixed tender, there were no deals for any of the 500 000 shares of Chimco JSC – Vratza, Investor.bg reported. The limited price of one market batch was reduced o BGN 62 000 or BGN 2.48 per share. Consequently, today the price of one market batch was reduced to BGN 49 500 or BGN 1.98 per share. There are 20 market batches consisting of 25 000 shares each.
Source: Monitor (03.06.2005)

Lukoil-Neftochim is most likely to remain for trade at the Stock Exchange, despite the refinery's major shareholder Lukoil Europe Holdings B.V. intends to delist the company of the public register. The reason is that currently Lukoil-Neftochim has over 10 000 shareholders, and following the recent amendments in the Public Offering of Securities Act, taken force as of May 10, each company having over 10 000 shareholders in the past two years, should be immediately listed in the public register.
Source: Dnevnik (07.06.2005)

Shares of 14 companies were sold in the first day of the 12th centralized public auction, the data of the Stock Exchange showed yesterday. The shares were sold for BGN 97,292 and non-cash instruments par valued at BGN 95,732. The auction will last till June 20. The Privatization Agency offers shares of 63 companies. The most funds will be paid for 255 776 shares of Bovis JSC – BGN 52,199, or an average of BGN 0.20 per share. All the 1282 shares of Vasil Petleshkov JSC were sold yesterday for BGN 32, 377. The bigger amount of non-cash instruments will be used for paying the 8726 shares of Yavor-Varna JSC.
Source: Sega (09.06.2005)

The state generated revenues of BGN 25 000 in the second day of the central public auction. This is the last chance for local investors to spend their investment bonds, which expire on 30 June.
Source: Standart (10.06.2005)

All local investment intermediaries should be relicensed starting 1 January 2006, Ms. Dimana Rankova said yesterday during a seminar on the amendments in the Law on Public Offering of Securities, held in Plovdiv. Under the amendments, the license regime will be bound with the new requirements for minimum capital of the companies. The floor capital has been fixed at BGN 250 000 for intermediaries, operating clients’ money and securities in Bulgaria. For intermediaries, signing deals with their own funds and securities, the minimum capital has been set at BGN 1.5 mln. Intermediaries, not meeting the requirements for any of the two groups, could be licensed against a capital of BGN 100 000, but for a transitional period only. The new capital requirements should become effective on 1 January 2006.
Source: Sega (10.06.2005)

Credit card issuer Transcard will be listed on the stock exchange. This is going to become a fact on Monday, June 20. Thus, the card issuer will become the first Bulgarian company from this area of activity to go public. Five percent from the total number of the shares will be included in the first issue, which will consist of dematerialized registered shares. The joint-stock capital at the moment is BGN 5 million. The nominal value of 1 share is 1 BGN, but the starting stock exchange price is set at BGN 8, the currency of the securities being the Bulgarian lev (BGN). The issuance will take place at a closed auction and the securities will be traded through a licensed investment broker. The company intends to float up to 40% of its capital at the Bulgarian Stock Exchange (BSE).
Source: Standart (15.06.2005)

The state-owned stake in 18 companies was completely sold out at the 12th centralized public auction that finished yesterday, the Privatisation agency announced. Three stakes were partially sold. The deals agreed amount to BGN 138,000 in cash and BGN 128,000 in non-cash instruments.
Source: Standart (21.06.2005)

LUKoil Neftochim Bourgas JSC will no longer be selling its shares at the stock exchange. The name of the oil refinery will be struck off the register of the public companies. This decision was made at the company's annual general meeting yesterday. The meeting was attended by holders of 11,539,368 shares - 85% of the company's capital. The write-off is in conformity with the Public Offering of Securities Act. The shares of all big oil companies are increasing in price due to the high prices of petrol. The majority owner of LUKoil Neftochim Bourgas wants to keep the big profits for himself through the transformation of the oil refinery from a public company into a private closed company.
Source: Standart (22.06.2005)

Another non-attendance public auction on the privatization market will be launched by the Bulgarian Stock Exchange and will take place from the 13 to the 27 of July. The registered shares belong to 11 companies with limited liability. The company list can be found on the Stock Exchange website.
Source: Pari (06.07.2005)

All 150,000 rights issued by local Special Purpose Vehicle (SPV) Park were successfully auctioned off on the Bulgarian stock exchange on Monday, July 11. The rights were bought at BGN 0.66 per unit by clients of investment intermediary Beta Corp, itself a 12.1% shareholder in Park. Prior to the raise, Park's capital stood at BGN 500,000. The SPV's first investment project is the construction of a 10,000 sq m villa community in the village of Yunets, located south of coastal city Varna. The building site has already been purchased. The project should be completed by the end of 2006. Park is 30%-owned by Plovdiv-based RHL JSC; another 20% are held by Zagora Invest.
Source: Dnevnik (12.07.2005)

The net profit of Biovet for the first half of 2005 has dropped by 54 per cent compared to BGN 1.88 mln for the same period last year, the unconsolidated report of the company , presented by the Bulgarian Stock Exchange showed. Revenues from sales increased to BGN 1.15 mln, as compared to BGN 578 000 for the first half of 2004. Expenses for economic elements have increased by 7.1 per cent to 25.1 mln, and financial expenses have increased by 10. 8 per cent to BGN 1.04 mln.The capital shares of the company are BGN 6.78 mln and its own funds are BGN 55.5 mln in the end of the first two quarters of the year.
Source: Monitor (20.07.2005)

Bulgarian steel plant Stomana adjudicated bankrupt Steel maker Stomana AD was adjudicated bankrupt by the Pernik regional court on July 7, the Bulgarian Stock Exchange said on Thursday, July 21. The court has issued a general injunction against disposition of Stomana property and stayed executory process against property of the plant. The court has also ordered to realise the assets of the debtor that are part of the bankruptcy estate. The court decisions should be executed immediately. The court has also reinstalled the functions of the bailiff Ms. Violeta Manolova. The insolvency proceedings against Stomana were initiated on a petition from the State Receivables Collection Agency (SRCA) lodged in February 2005. The agency argued that the company had defaulted on its recovery plan. At the time, Stomana's dues to the state were estimated at 11.3 mln levs, of which 10 mln levs are due to the National Social Security Institute and the remainder to the tax authorities. A recovery plan, which was adopted in 2000 and launched in May 2001, says that the company should dispose of its assets to cover outstanding liabilities. The recovery plan expired in June. So far, the steel company has sold more than 90% of its assets. Initially, the company's assets were expected to fetch some 42 mln levs. According to unofficial information, however, some 50 mln levs have been pocketed. The bulk went to pay wage arrears and maintenance costs. Greek company Sidenor, part of the Viohalco industrial group, acquired Stomana's main production in 2001 for $13.5 mln, and set up the locally-registered Stomana Industry. In a parallel development, a number of manufacturing units were sold as self-contained parts.
Source: Dnevnik (22.07.2005)

Black Sea Holding reported a BGN 37,000 drop in its first half loss which went down to BGN 74,000, compared to the same period last year when the loss totaled BGN 111,000, the report presented to the Bulgarian Stock Exchange showed. Previously, the holding was named Neftochim-Invest holding. Spendings for the period under review fell by 51.2 per cent or BGN 146,000, down to BGN 139,000, while in 2004 they were BGN 285,000. Black Sea Holding JSC’s share participations remained unchanged during the past year. Holding’s stake in the capital of Primoretz-Tourist JSC is evaluated for BGN 2.3 mln (99.67 per cent). The 99.99-per cent stake in Neftochim-Invest Finance JSC totals BGN 1.76 mln.
Source: Monitor (22.07.2005)

The Enemona JSC construction company will be listed for trade at the Bulgarian Stock Exchange (BSE). The prospectus for public offering of the company's shares has been deposited with the Commission for Financial Supervision. BSE will sell shares of the current issue of company stock, as Enemona AD does not plan an IPO. The share capital of the company, set at BGN 1 million, is currently owned by a group of natural persons, with the largest stake (76%) held by Executive Director Dichko Prokopiev. Enemona AD was incorporated in 1990 by construction experts, who had been involved in the construction of the Kozlodui nuclear power facility. The company was contracted also for the upgrading of the two 1000 MW units at Kozlodui, and for several projects at Kremikovtsi Iron and Steel.
Source: Pari (25.07.2005)

The private hospital Higia-Pazardjik is planning to launch shares for trade on the stock exchange, said the executive manager of the company Mr. Staiko Spiridonov. This is the first hospital in Bulgaria to launch its shares on the stock exchange. When a company turns into a public one, that guarantees transparency of its activities, said Mr. Radoslav Jeliazkov from BSE-Sofia. Higia is registered in court with a capital of BGN 2 mln, with a nominal of BGN 1 per share. The company shareholders are: Balkantourist-Trakia JSC with a share of 6 per cent, Somoni-2001 LTD with a share of 11.63 per cent and Private Health Establishment Higia LTD with a share of 82.73 per cent.
Source: Sega (25.07.2005)

The bonds issued by the Shumen Municipality have already been listed on the Bulgarian Stock Exchange and are traded at the informal segment of the bourse. Yesterday's deals were struck at a average price of BGN 1173.8 for a bond of a BGN 1000 par value. The maturity of the bonds is set for January 16, 2010. The simple annual interest is set at 8.7%. Interest payments are made twice a year, with the first scheduled for August 16. The bond loan is managed by Raiffeisenbank-Bulgaria and by Elana brokerage. The Shumen Municipality plans to use the revenue from t he bond issue for financing rep[airs of the road network in the region.
Source: Pari (28.07.2005)

Stakes in 6 limited liability companies having a state-owned interest of under 50 per cent were sold within the first remote public auction, held on Bulgaria’s Stock Exchange, the Privatization Agency (PA) reported Thursday. Payments worth BGN 9225 in cash and BGN 18 995 in non-monetary payment means were contracted. In the end of June, PA auctioned stakes in 11 companies through the stock exchange. The Agency managed to sell off the stakes in Agromechservice, MURSS – Kocherinovo, OMZ – Sofia, Protex – Provadia, Kamenmash – Asenovgrad and MSSURTD – Strumyani. The state-owned stakes in Agroecoservice-90 – Montana, Agrotech – Vratza, Malina-Dupnitza, Forest Industrial and Repair Base – Teteven, aand Iskra-Electro – Plovdiv did not attract any candidate-buyers.
Source: Dnevnik (29.07.2005)

Bulgarian Stock Exchange excluded eight companies from the calculations of the BG-40 indicator of the most traded stocks and replaced them with different ones. DZI AD, Exploration and Extraction of Oil&Gas, Blagoevgrad BT, Bulgartabac Holding, Fazerles and Sofia BT will no longer have weight in the BG-40, while BTC, Shipbuilding Plant Odessos, Industrial Capital Holding, Holding Coop-Jug, Polimeri, Razvitie Industrial Holding, Mel Invest Holding and Hydraulic Elements and Systems are the new members of the club of top trading stocks. The move was the first change in the calculation methods of BG-40 since February 1, when it was introduced. yesterday the BG-40 index closed at 116.16 points, an increase of 2.12% as compared to the previous close.
Source: Pari (03.08.2005)

Again the Bulgarian Stock Exchange received an announcement about convention of general meeting of the shareholders of a public company, which provokes interest by its agenda. This time it is Factory for Grinding Machines JSC. One of the items included in the agenda of the meeting, which is to be held in the end of September, is voting a decision for establishing a new company through an in-kind contribution. Sole proprietorship of the capital of the new firm will be Factory for Grinding Machines JSC. If the decision is adopted the general meeting is most likely to vote and the contract of incorporation of the new company. The agenda seems similar to the deal in the in-kind contribution of the Black Sea resort Elenite, where the minority shareholders occurred to be damaged. In Elenite case the draining of the public company was performed particularly through contributing one commercial partnership in another. Then the assets of the resort dropped nearly 20 times.
Source: Dnevnik (03.08.2005)

Mr. Manyu Moravenov, the former head of Trade and Supervision department retired Bulgarian Stock Exchange last week. Mr. Moravenov has a 7-year service in BSE - Sofia JSC and managed one of the most important departments in the Stock Exchange’s structure. Mr. Ivan Takev is the acting substitute of Mr. Moravenov.
Source: Pari (08.08.2005)

A representative of the Vienna Stock Exchange stated in June that Bulgarian Stock Exchange is was one of the region’s bourses that it was interested in. currently however he has been backed only by a single invitation about general talks sent to the BSE’s management. In the same time, not so publicly announced, two other stock exchanges Euronext è OMX, have been already working out the affair. Vienna Stock Exchange’s appetite for consolidation with the CEE’s bourses has a long story. The Austrians aim at heading the eventual union of the capital markets in the region. This will be a holding company to organize the activity of all the platforms.
Source: Pari (08.08.2005)

? Compensatory instruments in circulation rose by BGN 3.25 mln in terms of face value, the data released by the Stock Exchange’s COBOS system showed. Last week they reached BGN 571.6 mln. The total number of all compensatory instruments registered in the Central Depository is BGN 1.65 bln. The registered compensatory notes grew by a million up to BGN 328 mln, while the housing bills are BGN 48 mln. The par value of the void investment notes remained BGN 65 mln.
Source: Standart (09.08.2005)

One of the former CEOs of Daru Car has acquired 48 per cent from the capital of Sofia Film. FX Studio Ltd. Of Sofia has bought 48.80 per cent from Sofia Film from Dam Mad Ltd. The deal was registered at the Stock Exchange on August 9 at a price of BGN 0.01 per share. Shareholders in FX Studio are the former CEO of Daru Car Mr. Ivaylo Koevski and Mr. Hristo Choevski. Mr. Koevski explained this ws not a long-term investment. Sofia Film was declared in liquidation this February.
Source: Standart (16.08.2005)

A foreign stock exchange will enter the management of the Bulgarian Stock Exchange (BSE). One of the ways to stimulate the local capital market is to attract a foreign stock exchange as a partner of BSE. The foreign partner could give their know-how for a period of one year and a half, the chairman of Bulgaria’s Financial Supervision Commission, Mr. Apostol Apostolov said. According to Investor.bg sources, negotiations are being held with the Scandinavian Stock Exchang OMX, the Athens Stock Exchange.
Source: Standart (19.08.2005)

Mr. Mileti Mladenov was elected as head of the managing board of the Fund on compensating the securities investors. The board includes Mr. Borislav Popov – the deputy governor of Sofia, Mr. Vesselin Ralchev – the manager of Dealing Finance Company, Ms. Irina Martseva – the general secretary of the Association of Commercial Banks, and Mr. Yavor Dimitrov – a department’s manager in BNB.
Source: 24 chasa (25.08.2005)

The trade on the Bulgarian stock-exchange calmed down over the past few days, after the optimistic wave that took the major players after Bulgaria overcame the Cabinet crisis. The prices of most of the companies slightly went down and the trading volume also decreased. The SOFIX index started its way down and lost 1.31% during the week and stopped at 819.68 pts. The BG 40 broad index also lost some of its positions, compared with the previous week, but Friday÷s exchange session closed at 125.12 pts, BG 40 gaining 0.67%. As the summer season approaches its end and the latest consolidated statements have been announced, the market analysts expect a new increase in the value of the two indexes of the Bulgarian Stock Exchange.
Source: Standart (29.08.2005)

Eastern Europe Equity Fund, Eastern Europe most beneficial one, owes its success to Bulgarian companies. Wallstreet Journal ranked top 1 the Estonia-based Hansa Eastern Europe Equity Fund among the open type investment funds, investing in CEE and Russia according to rentability. The yield of the Estonian fund is 63.62 per cent at an annual base. Big part of the fund’s portfolio is invested in Bulgaria shares. Bulgaria occupiesthe second position by countries’ diversification with 21.02 per cent of the assets or EUR 14.8 mln. Poland is first having attracted 25.8 per cent of the investments. In both countries the Fund has invested in 12 position. Third position is occupied by Hungary, followed by Romania, Croatia, and Estonia. The biggest single Fund’s investment is in BTC – 5.94 per cent of the assets net value, or EUR 4.193 mln.
Source: Pari (01.09.2005)

Bulgarian Stock Exchange – Sofia will move to a new office as of September 7, BSE’s CEO Mr. Georgi Draichev said. The new location is quite close to the former one and is situated in the neighbouring building in Sofia, 4 Three Ushi Str., Mr. Draichev said. Yet in April he announced that flit would happen in September and so now the plans were followed.
Source: Monitor (02.09.2005)

The Bulgarian stock exchange has registered a BGN 2.5 mln bond issued by Enemona JSC, a Kozloduy-based company for repair and conditioning of energy, eco and civil facilities. The interest coupon of the 5-year paper is 9.25% payable semi-annually. The bonds will start trading on the bourse from September 7. The cash raised by the issuance will be used to finance energy efficiency projects. Enemona has stacked up orders for BGN 40 mln so far in 2005, including BGN 12.5 mln of service commissions related to energy efficiency projects. The company posted revenues of BGN 31.2 mln in 2004 and a net profit of BGN 762,000.
Source: Dnevnik (02.09.2005)

The Privatization Agency (PA) will offer for sale shares in 69 companies during the 13th centralized public auction, which will be held at the Bulgarian Stock Exchange (BSE). 21 of the companies will be offered against non-monetary payment means, and 45 – against cash. Combined payment will be allowed for three of the enterprises. The list includes minority stakes in Vidachim, St.St. Constantine and Helena, Pamporovo, etc.
Source: Monitor (02.09.2005)

Women are more inclined to risk than men when playing at the stock market, evidences a survey made by ELANA Financial House. Its experts analyzed the type of profession, gender and age group of people investing in securities. "About 70% of the investments in shares and bonds were made by men," said Vesselin Petrov, executive director of ELANA Fond Management. According to ELANA data, 75% of the people who rely on professional management of their money are university graduates. According to their profession there are three general types of investors. The first are the freelancers - mostly architects, dentists and notaries. The second type includes the market players who have earned their money from real estates purchase and the third - businessmen, insurance experts, investment brokers and accountants. ELANA's clients play at the stock market with sums ranging from BGN 2,000 to BGN100,000 and the most popular investments are of about BGN 30,000 to BGN 40,000. It is curious to know that 48% of the people who rely on professional management of their money are between 26 and 35 years of age. Those over 45 comprise only 13% of the investors, the elderly prefer the balanced financial systems; 47% of the balanced investments are made by people over 60.
Source: Standart (07.09.2005)

Bulgaria's Financial Supervision Commission (FSC) is undergoing structural changes aimed at enhancing operation efficiency. In line with the strategy adopted a year ago and on the basis of an analysis prepared by a foreign consultant the FSC will be organised on a functional principle, i.e. staff, departments and directorates will be grouped according to the functions they perform. Three directorates will be set up within the investment activity supervision department: regulatory activity, supervising activity, procedural representation and market analyses. A new directorate, regulatory policy and analyses, will be established within the insurance supervision department to monitor the condition and development of the insurance market. The department will have two more directorates: inspection and financial supervision, and regulatory regime and consumer protection. No structural changes will be made to FSC's social security supervision department, as it operates on a functional principle.
Source: Pari (07.09.2005)

Bulgarian Stock Exchange has bought four floors in one of the sections of the newly constructed building. The office of the Central Depository is situated at the fourth floor, and the new Stock Exchange’s office is located at the fifth floor. The IT company serving the systems of both institutions is placed at the sixth floor. The office of the BSE’s CEO Mr. Georgi Draichev is at the seventh floor of the new building.
Source: Cash (09.09.2005)

The state should implement resolution 1096 of the PACE of 1996, and to declare the unused compensatory instruments a government obligation after January 1 2007, when Bulgaria should enter the EU. Item 10 of the document says that the restitution should have entirely completed after joining the EU. The deadline for completing all the cases for issuing temporary compensation certificated and the issuing of compensatory instruments is June 30 2006. The documents however do not have prescription, unlikely to the compensatory bonds the deadline of which expired June 30 2005. As a result of that securities for BGN 65 mln remained unused, and 200,000 holders were caused losses. Currently there are 571 mln compensatory instruments circulated and registered in the Central Depositary. They are held by 80,000 – 100,000 owners. The trade in compensatory instruments however is frozen because of court’s blocking some bigger privatization deals: TPP Varna SPJSC, Heat Supply, and Boyana Film. The lot of Navigation Maritime Bulgare SPJSC is not cleared as well, and a brand new privatization strategy is to be written.
Source: Monitor (12.09.2005)

The number of clients of the COBOS system has grown by 183 physical persons (or 17.3 per cent) up to 1242 clients as of 10 September 2005. The change is for a period of two months and a half. COBOS is a system for Internet registration of orders on BSE-Sofia. A total of 36 intermediaries have subscribed to the COBOS system.
Source: Monitor (15.09.2005)

BULGARIA'S Central Depository has approved changes that will facilitate investors in mutual funds, who will now be able to buy parts of units.
Source: Pari (26.09.2005)

The prices of the unsold shares of the companies included in the 13th Centralized Public Auction are reduced as of today, BSE - Sofia JSC announced. Introducing orders at prices lower than the minimal one but not lower than 50 per cent is allowed. Only few companies make exception of this – the price of Pamporovo JSC remains BGN 22.05, as there are 16,943 shares left unsold. 3095 shares of Pamporovo were sold during the first day of the auction at the average price of BGN 22.19 per share. The residual 25,174 shares of Novotel Plovdiv will also keep the price of BGN 3.17.
Source: Monitor (04.10.2005)

Prista Oil Ltd., Bulgaria's biggest lubricant producer, is contemplating listing its stock on the Bulgarian stock exchange next year, said the company's managing board chairman Plamen Bobokov. Prior to the listing, the company will consolidate the operations of its subsidiaries, said Bobokov. Prista Oil may also opt to float on the bourse stock only from some of its subsidiaries. In 2006, the company intends to split up its Prista Oil lubricants business from the MonBat car battery business and consolidate the operations within either division. Prista Oil has invested over 3.5 mln levs in product and customer service improvements so far in 2005. Investment spending in 2006 is seen at 9 mln levs. More than half of the allocated funds will be invested in the construction of a terminal for base oil components on a site owned by the company in Varna, on the Black Sea. The building permit will be obtained by the end of December with construction expected to take about 5 months. Another 3.2 mln levs have been earmarked for a new automated line for the production of synthetic and semi-synthetic oils with a 5 mln liter capacity and for the construction of a new laboratory unit. Prista Oil will also spend 800,000 levs to outfit 20 oil change centers. The company will have 95 auto centers up and running by the end of 2005. The lubricants maker sees profits falling 30% to $3 mln this year despite an anticipated 20% increase in annual turnover to $80 mln. The downside is attributed to the rampaging cost of input materials which is outrunning the price of the finished products. Prista Oil is in talks with 2 major companies for the production of motor oils. The company refused to name its potential partners at this stage of the negotiations. Earlier this month, Prista Oil announced it will manufacture over 30 types of motor oils under the Valvoline brand at its factory in the Turkish town of Korfez. The Bulgarian company is in the frame of privatisation procedures in Serbia and the Ukraine.
Source: Dnevnik (18.10.2005)

A total of six Greek companies are currently negotiating to be listed on the Bulgarian Stock Exchange. They will be listed with the assistance of EuroCapital Finance, the company announced. Besides these six, two other companies have demonstrated willingness to be quoted in Sofia. These are S.N. Argyros’ textile company Blue Point and the building consortium Domokat. The CEO of EuroCapital Finance Mr. Hristos Murusis explained the six companies that are currently negotiating with BSE are Bitex, operating in the field of real estate, Interlogic, textile producer Pangea, Promota Bulgaria (a subsidiary of Promota, which was recently sold to the investment fund Kischman-Mindner), Euroterra and Dominant Finance.
Source: Monitor (27.10.2005)

The price of the compensatory is to be raised up to BGN 0.80- 0.90 per BGN 1 nominal from the current BGN 0.60. Mr. Valentin Hristov, the head of the Association of the holder of compensatory instruments, stipulated. The new peak in the stock exchange trade in the restitution securities is expected after the Privatization Agency approves the deal with the Russian company RAO in TPP Varna. According to Mr. Hristov a total of 73 million compensatory instruments will be needed for the deal, and then some 500 million restitution securities will remain. The intermediaries and the compensatory instrument holders have been waiting the TPP Varna for 4-5 months and that is why the prices did not drop below BGN 0.63 per a BGN 1 nominal despite the inert trade in the past nine months. But he does not expect the stock exchange peak of January to go over again, when the prices reached to 120 per cent of the nominal because of the BTK deal. A part of the other compensatory instruments par valued at BGN 500 mln, that will remain after the TPP Varna deal, could be used if the TPP Bobov dol and Heat Supply Ruse deals come into life.
Source: Monitor (31.10.2005)

A remote public auction will be held on the Bulgarian Stock Exchange (BSE) November 14 through 28, 2005. Bids by 50% lower than the start price will be admitted for the unsold stakes after November 22. Only whole packages in nine limited liability companies will be offered for sale. Compensatory instruments will be accepted as a means of payment for three companies and only lev payments will be admitted for five entities. Combined payment is envisaged for one company.
Source: Pari (07.11.2005)

Some BGN 80 million have been collected in investment funds in Bulgaria, the chairman of the Bulgarian Association of the Managing Companies, Mr. Stoyan Toshev said. By the end of 2006, the assets are expected to reach about BGN 200 million. The investment and the contract funds, known around the world as mutual, collect means from the small investors and with them they buy shares and bonds. Some USD 15 trillion have been invested in over 54,000 investment funds around the world. USD 5 trillion have been collected in mutual funds in Europe, which is about 15% of the money of the Europeans. In Bulgaria, 0.35% of the savings of the Bulgarians have been invested in such funds.
Source: Standart (14.11.2005)

The State sold its shares in four companies on the 10th public tender by non-attendance, started on Monday at BSE. The total amount of the deals is BGN 11 075. The highest price is for V & VGD Green-houses’s 4 per cent of the capital, which initial price is over BGN 743 000. The company is in good financial condition. According to the information memorandum, implemented on the Exchange, the state owns 25 per cent of the company, 75 per cent owns BGD Commerce. The company activity is: production, buy-up, distribution of vegetables, flowers and decorative bushes, and other hot-house activities, domestic and foreign trade. The company owns one of the biggest hot-house complexes in the country. At the end of last year, the company’s assets amounted to BGN 26.3 mln, and the total revenues for the period reached BGN 11.8 mln
Source: Dnevnik (15.11.2005)

Investors are striving to buy in Bulgaria where the local SOFIX index grew by 33 per cent generally thanks to the pharmaceutical company Sopharma, a report of the Bloomberg agency reads. According to the agency investors direct their interest and funds to Romania, Bulgaria and Croatia because of their expected EU’s accession. Romanian BET index has increased almost three times since January 2004, and the Croatia’s CROBEX index is raised by 30 per cent in 2005.
Source: Monitor (23.11.2005)

Vipom, the Vidin-based manufacturer of pumps, pump aggregates and components thereof, will auction a package of 20,000 shares on Nov 30, said the Bulgarian stock exchange on Thursday, Nov 24. The package represents a 6.7% stake in the company. Vipom, 77%-owned by Russia's Roshydromash, reported a profit of BGN244,000 in Jan-Sept 2005, recovering from a year-ago loss. Sales rose 20% y/y to BGN3.4 mln.
Source: Dnevnik (25.11.2005)

The Bulgarian Stock Exchange is going to present some of its listed companies on the London Exchange next year, Sofia news announced. Besides the companies, the BSE as a whole is to be advertised as well and the business investments possibilities in the country. It is expected preparation of the event to make a move in the monotone trading, typical for the last few weeks. In the beginning of November the market slowed down and no major changes have been detected since.
Source: Standart (29.11.2005)

Bulgarians can trade online on the stock exchange from their home. The new platform Delta Broker was presented yesterday during the first financial fair in the National Palace of Culture (NDK) in Sofia. With the new solution people will be able to trade in real time and follow the quotes of the stocks on the stock exchange constantly. This has been possible only through the COBOS system so far. The fair attendants can negotiate investments in mutual funds, credits, assets management.
Source: Standart (02.12.2005)

Bulgarian Stock Exchange’s CEO, Mr. Georgi Draychev, was replaced by Ms. Bistra Ilkova during the board of directors’ meeting held on Tuesday. Ms. Ilkova is also a member of the board of directors. The former CEO said he retired from office of his own will, without specifying the reasons for his decision. Mr. Draichev submitted his resignation on Monday.
Source: Dnevnik (14.12.2005)

A 33.72-percent stake in Rodina Tourist JSC will be offered for sale at a closed auction that will be held on the Bulgarian Stock Exchange (BSE) on December 20. All the 82,159 shares will be offered in a single lot at a fixed price of BGN 6.259 million or BGN 76.18 a share. Most probably the stake to be placed at the auction is the one controlled by Albena Invest Holding, whose representatives a month ago announced the holding was to sell 33.72 percent in Rodina Tourist.
Source: Dnevnik (15.12.2005)

Thor Bjorgolfsson with two Golden Portfolio nominations Darik Radio nominated Icelandic billionaire Thor Bjorgolfsson for two of its business awards, the media reported. Bjorgolfsson’s fund Novator will compete with Telekom Austria (owner of Bulgaria’s largest mobile operator MobilTel) and Mittal Steel (owner of steelmaker Kremikovtzi) for the Investor of the Year prize and Bjorgolfsson himself is a nominee for the Golden Portfolio grand prix. The Bulgarian Stock Exchange and New Television will also contend in this category. In the past few years, winners were Mr. Valentine Zlatev – general manager of Lukoil Bulgaria (2004), Ms. Lidiya Shuleva – minister of economy (2003), Mr. Svetoslav Gavriyski – BNB governor (2002). The nominees for Financial Companies Management are DSK Bank, Elana and TBI, Darik Radio reported.
Source: Monitor (15.12.2005)

The shareholders of Chimimport will discuss on January 31 a proposal to list the holding company on the local bourse, it emerged from an announcement in the Official Gazette. The preparations for the listing of the company started in late 2004 when Chimimport's equity holdings were restructured. The listing was expected to happen before the end of 2005 but the decision was put on hold until the release of the company's consolidated financial statement that would provide better guidance to investors, said Alexander Kerezov, member of the managing board of the company. Chimimport will likely opt for an initial public offering that will not happen before April 2006, said Kerezov. The shareholders will also vote on a proposal to reverse an earlier decision to raise Chimimport's capital from 60 to 100 mln levs with a cash contribution. The new proposal is to enlarge the capital base with receivables of majority shareholder Chimimport Invest. The other shareholders will be eligible to participate with cash contributions. If the exercise is successful, the capital could reach 120 mln levs, said Kerezov. Chimimport's investment portfolio is dominated by the transport, financial, retail and tourist industries. The holding, 98.913%-owned by Chimimport Invest, posted a consolidated profit of 26.136 mln levs in 2004. Non-consolidated profit is expected to increase to 19 mln levs this year, up from 12.5 mln levs in 2004
Source: Dnevnik (29.12.2005)

On December 23, a Bourse trade with shares of investment fund Recon-struction Capital II started on London Exchange AIM’s alternative segment, RNS announced. 24,42 mln common shares were floated, with a par value of EUR 1, which means the collected sum is EUR 24,42 mln. The fund is based in the Cayman Islands and was established to make investments in shares on public and non-public companies, as well as investments in securities with fixed revenue, mostly in Bulgaria and Romania.
Source: Cash (30.12.2005)