Geno Tonev, portfolio manager, Ug Market Fund Management
The optimism of last Friday will surely be felt during trade hours on Monday. I expect this week to be very interesting. Investors will be looking for a correlation between BSE and the international markets.
There is a certain correlation, indeed but it is rather indirect. Apart from the recession fears, the soaring inflation, expensive fuels and food, our market continues to be burdened by local problems. Those are the lack of available cash, the withdrawal of many foreign investors, the lack of information on the public companies (and more precisely the lack of adequate managers' prognoses) amid high interst rates and a slowing economic growth worldwide etc.
So in spite of the positive ending of last week, it would be difficult to make very optimistic prognoses. I expect to see a lot of volatility and slightly higher turnovers. The financial reports of leading public companies are much anticipated and will be defining the trend.
Good news will boost the bulls' performance. Bad news, on the other hand, may lead to another period of declines, which would wipe out smaller players and set the foundation for another upward trend.
Blagovest Krachev, broker, Karoll
This week will be marked by the expectations of Q1 reports as investors want to know to what extent have public companies in Bulgaria been hit by the financial crisis. Good results will be essential for the establishment of an upward trend. I expect to see even lower prices this week.
Alexander Nikolov, chief broker, EIBank
After a very positive closing on Friday I expect to see more upward movement this week. It may be supported by good financial reports, as well as by the opinions abroad, stating that the worst of the worldwide financial crisis has already hit the markets.
In the past weeks, the prices of some of the most liquid Bulgarian stocks reached very attractive levels. I think that there is no lack of buyers - investors are simply waiting to make sure their bets are secure. I think last Friday was indicative of the end of the correction.