Georgia: Weekly Market Watch

Georgia: Weekly Market Watch

Georgia: Weekly Market Watch

Provided exclusively to The FINANCIAL by Galt & Taggart

Economy

Trade deficit up 5.0% y/y in April 2016

In April 2016, imports decreased just 0.5% y/y to US$ 549.3mn (excluding one-offs), exports were down 11.1% y/y to US$ 165.3mn, and the trade deficit widened 5.0% y/y to US$ 384mn, according to GeoStat’s preliminary figures. In 4Q16, the trade deficit was down 13.7% y/y to US$ 1.4bn (excluding one-offs). Detailed foreign trade statistics will be available on May 20, 2016.

NBG buys US$ 20mn

On 10 May 2016, NBG intervened for the 7th time on a purchasing side since Mar-16 and bought US$ 20mn aimed at curbing the appreciation of the national currency, which strengthened 7.9% against the US$ YTD. The central bank bought total of US$ 95mn in these 7 interventions in a period between March 17 and May 10. In Jan-16, the central bank made 3 interventions and sold total of US$ 60mn. As a result, NBG is a net buyer of US$ 35mn YTD.

Fixed income

Corporate Eurobonds: Bank of Georgia Eurobonds (GEBGG) closed at 3.8% yield, trading at 104.4 (+0.1% w/w). GOGC Eurobonds (GEOROG) were trading at 102.2 (unchanged w/w), yielding 4.6%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 109.0 (+0.2% w/w), yielding 6.0%. 

Equities

BGEO Group (BGEO LN) shares closed at GBP 23.32/share (+3.32% w/w and +15.62% m/m). More than 224k shares traded in the range of GBP 22.62 – 23.50/share. Average daily traded volume was 47k in the last 4 weeks, less than in the previous month. FTSE 250 Index, of which BOGH is a constituent, gained 0.01% w/w and lost 2.3% m/m, respectively. The volume of BOGH shares traded was at 0.57% of its capitalization. 

TBC Bank (TBCB LI) closed the week at US$ 11.20 (+6.67% w/w and +14.87% m/m). More than 20k GDRs changed hands in the range of GBP 10.50 – 11.20//GDR. Average daily traded volume was 10k in the last 4 weeks, less than in the previous month.

Georgia Healthcare Group (GHG LN) shares closed at GBP 1.95/share (+0.19% w/w and +11.59% m/m). More than 16k shares were traded in the range of GBP 1.95 – 2.03/share. Average daily traded volume was 12k in the last 4 weeks. The volume of GHG shares traded was at 0.01% of its capitalization. 

On the Georgian stock exchange Teliani Valley shares were traded at GEL 0.13 (unchanged w/w). As a result, the G&T remained at 796.74 (unchanged w/w). 

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 650mn (US$ 293.8mn).

Ministry of Finance Treasury Notes: 2-year GEL 20.0mn (US$ 9.0mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on May 11, 2016. The weighted average yield was fixed at 9.791%. The nearest treasury securities auction is scheduled for May 18, 2016, where GEL 45mn nominal value 1-year T-Notes will be sold.