Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

Exports up 12.7% y/y in February 2017 

In February 2017, exports increased 12.7% y/y to US$ 178.9mn, imports were up 13.7% y/y to US$ 590.7mn and the trade deficit widened 14.2% y/y to US$ 411.8mn according to GeoStat’s preliminary figures. Detailed foreign trade statistics will be available on March 20, 2017.

Money transfers up 17.9% y/y in February 2017 

In February 2017, money transfers increased 17.9% y/y to US$ 94.1mn after growing 26.1% y/y in previous month, according to NBG. Money transfers were up from all major remitting countries: Russia (+21.1% y/y, 32.2% of total), USA (+15.6% y/y, 10.8% of total), Greece (+8.6% y/y, 10.7% of total), Italy (+2.0% y/y, 10.5% of total), and Turkey (+54.0% y/y, 8.1% of total). In 2M17 money transfers were up 21.6% y/y to US$ 178.0mn.

Fixed income

Corporate Eurobonds: Bank of Georgia Eurobond (BGEOLN) closed at 5.8% yield, trading at 101.1     (-0.3% w/w). GOGC Eurobonds (GEOROG 04/21) traded at 105.3 (-0.1% w/w), yielding 5.3%. Georgian Railway Eurobond (GRAIL) traded at a premium at 110.4 (+0.4% w/w), yielding 5.5%. 

Georgian Sovereign Eurobond (GEORG) closed at 110.6 (+0.1% w/w) at 4.0% yield to maturity.


BGEO Group (BGEO LN) shares closed at GBP 30.66/share (+2.64% w/w and -1.29% m/m). More than 624k shares traded in the range of GBP 29.55 – 31.08/share. Average daily traded volume was 130k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 0.50% w/w and gained 1.86% m/m. The volume of BGEO shares traded was at 1.58% of its capitalization.

 TBC Bank Group (TBCG LN) closed the week at GBP 14.97 (+6.32% w/w and +6.02% m/m). More than 331k shares changed hands in the range of GBP 14.00 – 15.25/share. Averaged daily traded volume was 62k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.52/share (-2.08% w/w and -0.77% m/m). More than 76k shares were traded in the range of GBP 3.51 – 3.61/share.  Average daily traded volume was 21k in the last 4 weeks. The volume of GHG shares traded was at 0.06% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 1,200mn (US$ 481.7mn).

Ministry of Finance Treasury Securities: There was no treasury securities auction last week. The nearest treasury securities auction is scheduled for March 29, 2017, where GEL 20mn nominal value 5-year T-Notes will be sold.