Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy -- International reserves down 0.4% y/y in July 2018.

Gross international reserves were down 0.4% y/y and down 2.6% m/m to US$ 2.9bn in July 2018, according to NBG. The NBG purchased US$ 20mn on its 2 auctions in July, 2018. Change in reserves was attributed to government FX operations and/or asset revaluation.

Fixed income

Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 6.0% yield, trading at 99.9 (-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 94.0 (-0.3% w/w), yielding 7.5%.

GOGC Eurobonds (GEOROG) were trading at 102.0 (+0.3% w/w), yielding 5.9%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 105.5 (-1.1% w/w), yielding 6.1%.

Georgian Sovereign Eurobonds (GEORG) closed at 106.3 (-0.3% w/w) at 4.4% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

Bank of Georgia Group (BGEO LN) shares closed at GBP 17.10/share (-2.55% w/w and -7.83% m/m). More than 197k shares traded in the range of GBP 17.10 – 18.33/share. Average daily traded volume was 57k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 0.07% w/w and lost 0.97% m/m. The volume of BGEO shares traded was at 0.40% of its capitalization.

Georgia Capital (CGEO LN) shares closed at GBP 10.00/share (+0.51% w/w and -3.19% m/m). More than 281k shares traded in the range of GBP 9.71 – 10.20/share. Average daily traded volume was 181k in the last 4 weeks. The volume of CGEO shares traded was at 0.73% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 16.50 (-5.50% w/w and -2.74% m/m). More than 53k shares changed hands in the range of GBP 16.34 – 17.58/share. Average daily traded volume was 21k in the last 4 weeks. The volume of TBCG shares traded was at 0.10% of its capitalization.

Georgia Healthcare Group (GHG LN) shares closed at GBP 2.67/share (+0.19% w/w and -2.74% m/m). More than 100k shares were traded in the range of GBP 2.59 – 2.74/share. Average daily traded volume was 30k in the last 4 weeks. The volume of GHG shares traded was at 0.08% of its capitalization. BGEO Group PLC (BGEO LN)

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 850mn (US$ 344.9mn).

Certificates of deposit: NBG sold 91-day, GEL 20mn (US$ 8.1mn) certificates of deposit, with an average yield of 7.13% (down 0.18ppts from previous issue).

Ministry of Finance Benchmark Bonds:

2-year GEL 40.0mn (US$ 16.3mn) Benchmark Bonds of Ministry of Finance were sold at the auction held at NBG on August 8, 2018. The weighted average yield was fixed at 7.265%.

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 8.1mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on August 8, 2018. The weighted average yield was fixed at 7.133%.