The panic that rattled the international financial markets over the default of US investment bank Bear Stearns had a negative impact on the Bulgarian stock exchange (BSE) as well. As expected, local banks suffered the most. On March 17, shares of First Investment Bank, Corporate Commercial Bank and the Central Cooperative Bank lost 3.92 per cent, 2.78 per cent and 8.68 per cent of their value, respectively.

Some analysts believed international developments, and not individual corporate news, were driving developments on the BSE. Others attributed the downward trend to the fact that the ratio between the current to accounting share value of local banks were higher than those in developed markets. Therefore, it was the alignment to the going ratios in developed markets rather than the Bear Stearns’ news that produced the downward adjustment. The shares of Bulgarian banks listed on the exchange started to slowly decrease in value in late summer 2007, two or three months after international markets began dipping into a crisis.

On March 18, the broad BG40 was the only index to increase in value, to 371.3 points, up 0.94 per cent against its closing value on March 14. The blue-chip Sofix lost 0.9 per cent to end at 1282.88 points. BG TR30 was down 0.24 per cent to 836.48 points while BG REIT fell 0.24 per cent to 836.48 points.

Of the 112 companies whose shares were traded, 65, or 58 per cent, lost value, 31 increased in value and 16 remained unchanged.
Meanwhile, Investor.bg ranked Eurohold Bulgaria as the fastest growing public company for 2007. The Top 100 ranking assessed companies based on growth of revenue, profit and reserves. Eurohold’s revenues rose by 582 per cent on the year. However, the bulk of the growth was attributable to the low benchmark set the year before. KTI Suedinenie ranked second with growth of 339 per cent in consolidated revenues. Sopharma Logistics came in third, up 189 per cent, and Kotlostroene fourth, 79.6 per cent. Balkancar Zaria was ranked fifth with growth of 79.5 per cent.

In other news, the Commission for Financial Supervision (CFS) warned it would fine 40 public companies for failure to sign up with the e-register of the commission by its specified date. According to the Securities Act, the CFS may halt trading in company shares and order the release of companies managing the holding.