SOFIX, leading index on the Bulgarian stock exchange, ends three months negative trend in October. The index posted first up month since June and finished 1.03% up m/m. YTD the index is down 14.62% and back where it was in the autumn of 2013.
Over the last five years, SOFIX has displayed six times at least one more up month after posting an end to a negative trend. However, it has reversed the trend also six times by posting a down month after a previous single up month.
This implies a 50/50 chance for October being an inflexion point and SOFIX posting a positive November.
October rise came in the midst of a first successful IPO in Sofia since 2013. Leading IT company Sirma Group Holding raised BGN 11.5 m and shall shortly start secondary trading on the Bulgarian stock exchange.
Equity turnover on the market is down 12.2% m/m as investors were focused on Sirma’s IPO.