Bulgaria Stock Exchange 2009 Turnover Drops by 46%
The Bulgaria Stock Exchange (BSE) has announced that turnover in 2009 dropped 46,4% year-on-year, from BGN 2,9 B in 2008 to BGN1,56 B in 2009.
The negative tendency has carried forward into January. In recent months, daily turnover has several times dipped below BGN 0,5 M.
Peter Peshev, a broker from Bull Trend Brokerage, said liquidity was so low that it was frightening for both local and foreign investors.
Transactions for the year declined by almost a half, according to BSE data, from more than 444 700 to a little over 202 500.
"Turnovers are extremely low and that drove the major foreign investors outside the country and prevented the entry of new capital. Prices are low, compared to the average levels for the past five years, but this is not a sufficient factor for the positive development of the Stock Exchange," said Tsvetoslav Tzachev of Elana Trading.
The global financial crisis has been a factor in the poor performance of BSE.
"The activities of many companies were affected by the crisis, but in the more liquid markets, balance was found more easily and investors did not bear the risk of not being able to sell their securities," concluded Tzachev.
According to analysts, the Bulgarian stock market will not catch up in 2010 with the performance of neighboring markets, such as Romania and Ukraine.
Prospects for companies are currently unfavourable, even though the negative factors resulting from the crisis have already been reflected in the drop of 85% in the market between October 2007 and March 2009.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » Bulgaria: Inspections of Fast Loan Companies are starting all over the country
- » Bulgaria: The Budget Committee accepted the Budget Extension
- » Bulgarian National Bank: We are on the Final stretch on the Road to the Eurozone
- » Finance Ministry: If there is No New Budget by June 10 - Bulgaria could only Spend as much as it Collects
- » Bulgarian National Bank: The Technical Work on the Adoption of the Euro Continues
- » Bulgaria: Inflation Decline and GDP Growth