Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

NPLs at 2.4% in March 2018

In March 2018, the banking sector loan portfolio increased 21.6% y/y after growing 20.0% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 18.0% y/y and up 1.3% m/m to GEL 22.2bn (US$ 9.2bn). Deposits were up 22.9% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 22.1% y/y and up 2.4% m/m to GEL 19.6bn (US$ 8.1bn). Deposit dollarization declined to 62.8% (-6.4ppts y/y and -0.9ppts m/m). NPLs stood at 2.4% in March 2018 (-1.3ppts y/y and -0.4ppts m/m).

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.8% yield, trading at 100.9 (-0.3% 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 95.5 (-0.6% w/w), yielding 7.1%.
GOGC Eurobonds (GEOROG) were trading at 103.2 (-0.3% w/w), yielding 5.6%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 107.9 (-0.3% w/w), yielding 5.6%.

Georgian Sovereign Eurobonds (GEORG) closed at 107.8 (-0.1% w/w) at 4.0% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

BGEO Group (BGEO LN) shares closed at GBP 34.82/share (-3.92% w/w and -1.80% m/m). More than 219k shares traded in the range of GBP 34.54 – 36.76/share. Average daily traded volume was 61k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 0.22% w/w and gained 4.51% m/m. The volume of BGEO shares traded was at 0.56% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 18.16 (-2.78% w/w and -3.40% m/m). More than 135k shares changed hands in the range of GBP 17.84 – 18.94 share. Averaged daily traded volume was 38k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 2.80/share (-5.72% w/w and -8.79% m/m). More than 81k shares were traded in the range of GBP 2.77 – 2.95/share. Average daily traded volume was 11k 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 920mn (US$ 371.2mn).

Ministry of Finance Treasury Notes:

5-year GEL 30.0mn (US$ 12.1mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on April 25, 2018. The weighted average yield was fixed at 7.720%. The nearest treasury security auction is scheduled for May 2, 2018, where GEL 40.0mn nominal value 1-year T-Bills will be sold.