Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

International reserves up 11.1% y/y in April 2018

Gross international reserves were up 11.1% y/y to US$ 3.05bn in April 2018 according to NBG. On a monthly basis reserves were up 1.0%. Growth in reserves was mainly attributed to NBG’s FX interventions as NBG purchased US$ 20mn on April 3, 2018.

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.8% yield, trading at 100.7 (-0.1% 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 94.9 (-0.4% w/w), yielding 7.2%.
GOGC Eurobonds (GEOROG) were trading at 101.6 (-0.8% w/w), yielding 6.1%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 106.0 (-1.5% w/w), yielding 6.1%.

Georgian Sovereign Eurobonds (GEORG) closed at 106.3 (-0.3% w/w) at 4.5% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

BGEO Group (BGEO LN) shares closed at GBP 33.80/share (+1.93% w/w and -3.59% m/m). More than 328k shares traded in the range of GBP 32.32 – 34.36/share. Average daily traded volume was 56k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.78% w/w and gained 5.75% m/m. The volume of BGEO shares traded was at 0.83% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 17.82 (+2.06% w/w and -0.89% m/m). More than 128k shares changed hands in the range of GBP 16.80 – 17.94 share. Averaged daily traded volume was 25k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 2.65/share (-5.02% w/w and -14.52% m/m). More than 43k shares were traded in the range of GBP 2.62 – 2.80/share. Average daily traded volume was 14k in the last 4 weeks. The volume of GHG shares traded was at 0.03% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 1,100mn (US$ 449.1mn).

Ministry of Finance Treasury Notes:

2-year GEL 40.0mn (US$ 16.3mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on May 8, 2018. The weighted average yield was fixed at 7.395%. The nearest treasury security auction is scheduled for May 23, 2018, where GEL 30.0mn nominal value 5-year T-Notes will be sold.

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 8.2mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on May 8, 2018. The weighted average yield was fixed at 7.277%.