Probable sell-off of a portfolio collapsed the prices of a number of BSE positions by 10-20%

Probable sell-off of a portfolio collapsed the prices of a number of BSE positions by 10-20%
Probable sell-off of a portfolio collapsed the prices of a number of BSE positions by 10-20%

In some “hot” shares such as “Dronamix Capital” the decline was up to 21%, and in “Alterco” – up to 10.6%

A probable sell-off of a portfolio of shares significantly lowered the prices of a number of positions on the Sofia Stock Exchange.

How can it be judged that an investor is selling his portfolio? First, the decline was not panicky in the first minutes of trading, but throughout the day there was a sell-off in individual positions, during which negotiations were probably held to find buyers at better prices.

Second, the sell-offs resembled a portfolio of “current companies,” mainly those that have made initial public offerings (IPOs) in recent years, including in the BEAM growth market.

Probably someone has decided to liquidate their portfolio given the increasingly high interest rates in the US (3.7% on 10-year bonds), the high auction prices for Bulgarian debt recently (interest rate above 4), the expectations of a recession in Europe due to the expensive raw materials, the cooling of the global economy, interest rate hikes in the US and other factors.

With the chronically weak liquidity of the domestic capital market, the supply led to a sharp decline in prices.

In some “hot” shares such as Dronamix Capital’s shares, the price drop was up to 21% at one point to BGN 2.6 per share from BGN 3.3 at the previous close.

At “Alterco” there were prices of BGN 16.8 against BGN 18.8 at the previous close, or a drop of 10.6%.

At “HR Capital” the decrease was by 4.35% to BGN 2.2, at “Sin Kars” – by 2.56% to BGN 1.14, but during the day there were transactions at BGN 1.06. , or a decrease of 9.4%.

The books of other relevant companies were also under pressure, such as Agria Group Holding, where there was a drop to BGN 25 per share from BGN 27 at the previous close, or minus 7.4%, and Telematic IB AD with 3, 33% to BGN 14.5.

Other new companies on the market (from recent years) also reported strong drops in share prices for the day, such as “Eleven Capital” AD with 6.09% to BGN 18.5 and “Telelink Business Services Group” AD with 3.7 % up to BGN 13

Against this background, the main SOFIX stock index retreated by 1.81% to 589.13 points, recording 6 declines in the last 7 sessions. The index includes older companies such as “Sopharma”, “Advance Terafund” and others.

But there were strong declines in the index as well. The shares of CCB fell by 8.05% to BGN 1.6, of PIB – by 3.17% to BGN 1.83, of Doverie United Holding AD – by 3% to BGN 7.12, on “FNIB” REIT – by 2.63% to BGN 2.22, of “Chimimport” AD – by 2.5% to BGN 0.78, and others.

In the composition of the index, only the shares of “Sopharma” AD registered an increase in price by 0.45% to BGN 4.5 per share.

The turnover with the SOFIX companies was BGN 684 thousand, and the total stock market turnover was BGN 2.4 million, of which BGN 255 thousand in foreign securities. The deals were 711.

The material is informative in nature and is not a recommendation for the purchase and sale of securities.

The article is in bulgaria

Tags: Probable selloff portfolio collapsed prices number BSE positions

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