Ivaylo Stoyanov, Analyst, Capman
I expect lackluster trade on the Bulgarian Stock Exchange (BSE) as there are only two work days this week. Despite that I believe that the trend for more active trade in some of the most liquid stocks will continue in the end of the month.
Company reports that are due to be published may influence the market but the stock price range will remain close to the present levels.
Angel Dikov, Head of Equity Department, Somoni Asset Management
The trade on BSE remained mixed last week with rises and declines and without a clear trend. The trading volumes remained very small, excluding transactions on positions such as Petrol and Zarneni Hrani Bulgaria.
Kaolin and Neochim gave the first signals that the market is finding a way out of the doldrums under the influence of the first quarter company reports. The were massive sell-offs on the position of Kaoilin after the company's first quarter report disappointed investors. Neochim's stock price went up by 30% after the surprisingly good first quarter results of the company.
The relatively good financial reports of First Investment Bank, M+S Hydraulic and Fazerles also helped the stock price of the three companies move away from the lows hit earlier in the month. There are only two work days this week but a great number of company reports, which can stir the market, is expected.
The situation on the international markets is getting stable and the stock prices are moving up, which should contribute to the long-awaited awakening of the Bulgarian capital market as well. Foreign investors are still afraid to get back to the risky markets and the Bulgarian is considered such.
Against the backdrop of the major global indexes regaining ground and the good corporate and political news from Bulgaria we could be witnessing the gradual comeback of foreign players to the domestic capital market. This seems even more likely considering the attractive stock price levels and the good macroeconomic conditions in Central and Eastern Europe.
Investors will also watch closely the forthcoming structural and personal changes in the Bulgarian ministries and the green light on the absorption of the suspended EU funding, which is expected to follow.
Ivo Tolev, Executive Director, Ultima Capital Management (undergoing registration)
Most market players will likely take the only two work days this week off. As a result we could expect lackluster trade on BSE. Only a company report or the massive stock purchasing typical for the end of the month may spark an active trade. Otherwise, stock prices will remain within the same range in thin trade. As for the company reports published so far, I believe they met the expectations of part of the market players. Some of the reports were even better than expected but others disappointed.
The market, however, has already gotten used to these unpleasant surprises and to the behavior of the majority owners.