Despite moderate broker optimism that the main indices of the Bulgarian Stock Exchange (BSE) will show some signs of stability as global markets go into the traditional August slumber, their expectations were proven wrong.

The Sofix index, which includes the 19 most liquid stocks on the Sofia bourse, fell 7.6 per cent in the five days to July 16 to 1022.74 points, according to BSE data. More than half of the drop, 4.3 per cent, came on July 16. The broad BG40 index, which tracks the 40 most liquid companies on BSE, lost 9.6 per cent, including 4.8 per cent on July 16, to end at 258.71 points.

“The market has been falling for a long while and I suppose that not a few speculators are closing repo deals and releasing cash,” Tsvetoslav Tsachev, head of research at Elana Trading brokerage, told SeeNews corporate newswire.

The BGTR30 index, in which companies with a free float of at least 10 per cent have equal weight, posted a loss of 6.65 per cent, including four per cent on the day on July 16, to end at 681.13 points.

BG-REIT, the index tracking the performance of real estate investment trusts, was the one that lost the least, ending the five days to July 16 only 3.9 per cent lower at 89.18 points.

The indices have steadily declined throughout the year, their downward march slowing down for a time in May. The Sofix has lost 41.1 per cent so far this year, while BG40 has now dropped 49.9 per cent.