Brokers: Little Activity During the Summer Months

Brokers: Little Activity During the Summer Months

Each Monday talks to three market participants asking the question “What do you expect to see this week on BSE?” Here is what they told us today:

Ivo Tolev, investment consultant

I expect thin trade in the present range and low volumes during the summer season. The new trading platform is another factor slowing down the activity. Investors are also waiting for clearer signs, trying to predict the trend direction for the traditionally slow summer months.

This is why I will not be surprised if indexes decline a little this week. Everyone's attention today (Monday) will be focused on the general meetings of shareholders of several public companies, as well as that of the Bulgarian Stock Exchange itself. It will be very interesting in view of the proposals made by the Bulgarian Associations of Licensed Investment Intermediaries, although, in my opinion everything has been decided beforehand.

Stefan Angelov, broker, Varchev Finance

With the ongoing instability on global capital markets, as a result of the record appreciation of oil and the increased risks of the bear markets, my expectations for the next five days are rather pessimistic.

The situation is very dynamic and difficult to predict, but I think local indexes will stay around current levels, with the possibility of slight declines if oil prices continue to rally.

I expect high volatility and low liquidity. As Monday is also the last day of the month, there might be some increased demand at the end of the session, but that will be a false excitement and will only increase the market volatility.

Angel Dikov, Analyses and Markets director, Somoni Asset Management

Indexes closed on negative territory last week. SOFIX hit a one-year low at 1119 points for a short time on Friday, but managed to rebound and closed at 1141 points.

The bad news coming from the international capital markets, the declining indexes all over the world and the rising oil prices are putting immense pressure on financial markets everywhere, BSE including.

Bulgaria is expecting the outcome of the issue with the blocked eurofunds and the European Commission's report on the country. A negative development of these two issues will be dangerous for both the financial market and Bulgaria's economy as whole.

Brokers and Cobos clients are already getting used to the new trading platform Xetra, although the numerous restrictions regarding the RTS, the more complicated order placement procedure and the many tenders scheduled, lead to a decline in turnovers and investors activity as a whole.

This article is analytical. All opinions above express the personal views of analysts. This is not a recommendation for buying/selling stock.

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