FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
BULGARIAN STOCK EXCHANGE
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
1. BSE-Sofia decided to terminate the
calculation of BG 40 as a price-weighted
index at the end of 2013 and to start a new
broad index named BGBX40 from January
1, 2014 based on the market capitalization,
adjusted with the free-float of the included
issues. At a price-weighted index as BG40
the highest weight components are those with
the highest unit price, hence one of the major
disadvantages of this type of index as a whole
- the unit price alone is an indicator for neither
the market value of the company, nor for its
liquidity and investor interest in the company.
Unlike indices based on market capitalization
(respectively free-float market capitalization),
at a price-weighted index there is no practice
to limit the maximum weight of an issue in the
index. In addition, as the higher unit price leads
to higher weight of the issue, so the low price
leads to a negligible weight.
For the above reasons and in an effort to
maintain the objective criteria in selecting the
values that constitute the index, BSE-Sofia
considered it appropriate to launch a new
broad index weighted by market capitalization,
adjusted with the free float. Such an option
would also allow the placement of restrictions
on the maximum weight of a single issue such
as in the indexes SOFIX and BGREIT.
2. A new section, representing the highest
equity segment on the Stock Exchange main
market - “Premium Market”, was launched on
the Exchange’s website. Through the Premium
Equities Segment the Exchange aims to draw
the attention of the investment community to the
best Bulgarian public companies, making them
more easily recognizable. BSE-Sofia statistics
Aiming to achieve greater functionality and
better data supply of the web-site of the
Exchange, BSE-Sofia has updated also its
Indices Section. The main changes in the sub-
sections of the four BSE-Sofia indices were as
follows: The number of financial instruments admitted to
trading on the markets, organized by BSE-Sofia,
was 495 at the end of 2013 compared to 496 at
the end of 2012. During the year some 23 new
issues were registered at the Exchange, incl. 6
secondary offerings, 12 bond issues, 4 units of
mutual funds and 1 real estate investment trust,
which was a decrease of 15% year-on-year.
• Detailed statistical information on the
constituents of the indices and on the
indices themselves has been added;
• The general information on each index
has been systematized into a table and
the visualisation has been respectively
improved;
• Historical data on the indices re-balancing
and on the respective corporate events of
the constituents has been added;
• Possibility to save the information into Excel
has been provided.
Key Information Contacts
Financial Supervision Commission www.fsc.bg
Central Depository www.csd-bg.bg
Bulgarian National Bank www.bnb.bg
Invest Bulgaria Agency www.investbg.government.bg
National Statistical Institute www.nsi.bg
CONTACT INFORMATION
Contact Name Mr. Panteley Karassimeonov
PAGE 40
E-mail [email protected]
Website www.bse-sofia.bg
Total turnover on the regulated market reached
BGN 1.52 bln in 2013 which was an increase
of some 123% year-on-year. The main factors
behind the increase were the high investor
activity and several large value one-off trades
during the year.
The market capitalization of the markets
operated by BSE-Sofia reached BGN 9.96
billion at the end of 2013, an annual increase of
some 1.35%. The Market capitalization/Gross
domestic product ratio declined from 12.54% to
12.67%. All four indices of BSE-Sofia increased
their value in 2013. The main index SOFIX
registered the biggest increase on an annual
basis (+42%). The equal-weighted indicator
BGTR30 rose by 35%, local broad index BG40 -
by 27% and BG REIT which contains companies
that operate in the field of securitization of real
estate or land - by 11%.