SOFIX down 11.8% in 2015 but fundament is catalyst for some stocks

The leading index on the Bulgarian Stock Exchange, SOFIX, recorded first annual decline since the euro crisis in 2011 with – 11.8% in 2015.

The index is off by 26% from its last peak in April 2014 but 77.3% above its 2008 financial crisis low in February 2009. Nevertheless, post-2007 performance shows the local market has not fully recovered. The index is still 76.4% below its 2007 all-time-high.

Sentiments remain bipolar, while macro figures have considerably improved. In contrast to the returns other markets have experienced, current level could bring SOFIX investors a good upside, provided the needed catalyst.


Selected stocks gain 35% to 50%

Fundament has been a major catalyst for particular stocks on the market. For example, Bulgartabac Holding (57B BU) and Speedy (0SP BU) have been among the top gainers on the broader market and from our covered companies list, supported by excellent financial performance. Both stocks rose 55% and 35% y/y respectively in 2015.

Agria Group Holding (A72 BU) added 23% y/y thus concluding the top 3 gainers from the companies list covered by ELANA Trading analysts.

Top losers were Sopharma (3JR BU), Eurohold Bulgaria (4EH BU) and First Investment Bank (5F4 BU) which decreased y/y by 29%, 25% and 22.8%, respectively.

Top 3 SOFIX gainers and losers

Top 3 SOFIX gainers for 2015 were Holding Varna (5V2) with 40.74%, Neochim AD (3NB) with 13.31%, and M+S Hydraulic (5MH) with 2.08%.
Top 3 losers for the year were Sopharma, First Investment Bank, Chimimport (6C4 BU), with -20%, and Industrial Holding Bulgaria (4I8), with -20%. SOFIX components’ market cap amounts to BGN 2.449bn, some 33.5% of the total market.

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