Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

Exports up 33.1% y/y in March 2018

In March 2018, exports increased 33.1% y/y to US$ 293.9mn, imports were up 34.7% y/y to US$ 837.7mn and the trade deficit widened 35.6% y/y to US$ 543.7mn, according to GeoStat’s preliminary figures. In 1Q18, trade deficit was up 18.1% to US$ 1.3bn as exports increased 28.4% y/y to US$ 740.3mn, while imports were up 21.6% y/y to US$ 2.1bn. Detailed foreign trade statistics will be available on April 19, 2018.

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.8% yield, trading at 100.9 (-0.6% w/w). Bank of Georgia GEL-denominated Eurobonds (GEBGG) were trading at 100.5 (unchanged w/w), yielding 10.7%. Georgia Capital Eurobonds (GEOCAP) were trading at 97.0 (-0.2% w/w), yielding 6.8%.
GOGC Eurobonds (GEOROG) were trading at 103.8 (-0.4% w/w), yielding 5.4%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 108.5 (-1.1% w/w), yielding 5.5%.

Georgian Sovereign Eurobonds (GEORG) closed at 107.9 (-0.5% w/w) at 4.0% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

BGEO Group (BGEO LN) shares closed at GBP 34.64/share (-4.31% w/w and -0.40% m/m). More than 336k shares traded in the range of GBP 34.32 – 36.40/share. Average daily traded volume was 66k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.55% w/w and lost 0.15% m/m. The volume of BGEO shares traded was at 0.85% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 17.88 (-5.70% w/w and -2.83% m/m). More than 183k shares changed hands in the range of GBP 17.64 – 18.96 share. Averaged daily traded volume was 54k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 2.97/share (-2.62% w/w and -7.19% m/m). More than 16k shares were traded in the range of GBP 2.97 – 3.20/share. Average daily traded volume was 5k in the last 4 weeks. The volume of GHG shares traded was at 0.01% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 780mn (US$ 324.9mn).

Ministry of Finance Treasury Notes:

2-year GEL 40.0mn (US$ 16.6mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on April 11, 2018. The weighted average yield was fixed at 7.421%. The nearest treasury security auction is scheduled for April 18, 2018, where GEL 25.0mn nominal value 10-year T-Notes will be sold.

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 8.3mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on April 11, 2018. The weighted average yield was fixed at 7.256%.