Trade in Advance Terrafund lifts Sofia bourse turnover, SOFIX sinks deeper

Trade in Advance Terrafund REIT [BUL:6A6] shares formed a large chunk of the total Bulgarian Stock Exchange regulated market turnover on Wednesday, as the benchmark SOFIX index continued its decline since the start of 2019.

Advance Terrafund REIT closed 0.25% lower at 1.975 levs on Wednesday. A total of 114,974 shares in the company changed hands during the trading session, forming a turnover of 227,000 levs, or 47% of the daily total.

The BSE saw a total daily regulated market of 481,000 levs ($283,000/246,000 euro) on Wednesday, up from 195,000 levs on Tuesday.

The SOFIX ended 0.90% lower at 572.13 points. The blue-chip index, which tracks the 15 most traded and capitalised companies listed on the Sofia bourse, extended its losses since the start of the year to 3.76%. The SOFIX is 18% down in the past 12 months.

Diversified group Stara Planina Hold [BUL:5SR] fell most among blue chips - by 3.88% to 6.2 levs. Battery maker Monbat [BUL:5MB] and diversified group Holding Varna [BUL:5V2] followed with drops of 2.55% and 2.50%, respectively.

Cellulose producer Svilosa [BUL:3MZ] rose most among companies listed in Sofia, adding 4.90% to 5.35 levs. Late on Tuesday, Svilosa said that its majority owner A.R.U.S. Holding has increased its stake in the company by 3.38% to 96.64% through a buyout offer, priced at 5.5 levs per share.

As A.R.U.S. Holding's stake in Svilosa exceeded 95% following the bid, the company has the right to squeeze out minority shareholders. At the same time, minority shareholders have the right to force A.R.U.S. Holding to buy their shares at a price of 5.5 levs.

The biggest decliner among BSE-listed companies on Wednesday was fertiliser producer Neochim. Neochim shares erased 6.25% to 30 levs, leaving them 24.6% shy of their three-month high - well within bear market territory.

Neochim's share price decline led to drops in the BGBX40 and the BGTR30 indices.

The BGBX40, which tracks the 40 most traded shares on the Sofia bourse, shedded 0.70% to 112.45 points, while the BGTR30 index, in which companies with a free float of at least 10% have equal weight, lost 0.80% to 481.68 points.

The BGREIT index closed 0.16% lower at 120.76 points, dragged down by drops in the share prices of Advance Terrafund REIT and Bulgarian Real Estate Furn REIT [BUL:5BU].

The BGREIT, which tracks real estate investment trusts listed both on the regulated market and BaSE Alternative Market of the Sofia bourse, ended 2018 at an all-time high of 121.07 points.

(1 euro = 1.95583 levs)

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