What can we expect to see on BSE in the next five days? This is what Profit.bg asked three market participants and here are their answers:

Ognyan Dechev, Popularna Kasa 95, broker and executive director

I don't think the week would give us any surprises, even though the Q1 reports are due and there are eleven general meeting of shareholders scheduled. The big question this summer will be “Is the worst already over or is it yet to come?”

I expect low liquidity and sell-offs on some positions. This week and the following couple of months will be a combination of summer mood and crisis. We can expect more news and rising prices only after the Q3 reports are out.

Pavel Dimitriv, investment consultant, Fiko Invest

My expectations are for a continuing shrinking of turnovers. We can not expect serious trade when turnovers are at around 2-3 mln leva. Investors will continue to struggle with the low liquidity. There will be more sellers than buyers, which can bring prices down. All this, in combination with the vacation mood during the summer months will reduce turnover figures even further.

The impact of the introduction of the new trading platform Xetra can still be felt. Investors (especially small ones) are still not familiar with the system, they have to learn the new ticker symbols and use a very different trade method. The new system also gives less information on the trade process. All these factors lead to a big gap between bids and asks, which makes exiting positions more difficult (most traders right now prefer to sell rather than buy). We are currently in the period of the general meetings of shareholders and corporate meetings, which decide on distributions of dividends and free shares.

According to art 50, par 4, chapter 4 of BSE's rules and regulations, all quotations are automatically erased on the ex-dividend date, which makes liquidity more difficult until the new quotations are entered.

As a whole, our market is trying to follow the international markets, but with the low liquidity we have here, what happens is that we overreact – every time there is bad news, people here start selling, and when there is good news, traders exit the positions.

The global markets are also seeing a slow down of trading activity and more and more investors are shifting to commodity markets. The high fuel prices are a direct or an indirect threat to all sectors of economy. The inflation worries are making investors more cautious than usual.

Tamara Becheva, analyst, Elana Trading

I don't expect this week to be very different from what we have seen in the past several months. Trade will be slow, in spite of the ending of the quarter and the due release of financial reports.

The market will continue to be very volatile and I don't expect any significant price changes. The global economy worries are among the main factors for the thin trade.

This article is analytical and expresses the personal opinions of the people interviewed. This is not a recommendation to buy/sell stock.