Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

Exports up 37.4% y/y in June 2017

In June 2017, exports increased 37.4% y/y to US$ 230.8mn, imports were flat y/y and stood at US$ 642.2mn and the trade deficit narrowed 13.3% y/y to US$ 411.4mn, according to GeoStat. Overall in 1H17, the trade deficit was almost flat (+0.2% y/y) at US$ 2.4bn as exports were up 30.1% to US$1.2bn, while imports increased 8.8% to US$ 3.6bn.

Increased exports of copper (+116.5% y/y), ferro-alloys (+236.3% y/y), cars (+41.8% y/y) and wine (+71.0% y/y) were the major commodities driving export growth in June 2017. 

Petroleum (-17.4% y/y), cars (-16.9% y/y), pharmaceuticals (-35.3% y/y), copper (+120.8% y/y) and phones (+33.9% y/y) represented the top 5 imported commodities in June 2017. 

Producer price index up 0.5% m/m and up 12.3% y/y in June 2017

PPI for industrial goods was up 0.5% m/m in June 2017, according to GeoStat. A 0.6% price increase for manufacturing contributed the most to the overall index change as prices were up for manufacture of basic metals and fabricated metal products (+1.8% m/m) and for food, beverages and tobacco (+1.1% m/m).

Annual PPI was up 12.3% in June 2017. Rising prices in manufacturing (+12.7% y/y) contributed the most to the overall index change. Prices were also up for supply of electricity, gas and water (+8.1% y/y) and for mining and quarrying (+16.7% y/y). 

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.6% yield, trading at 102.1 (+0.2% w/w). Bank of Georgia GEL-denominated Eurobonds (GEBGG) were trading at 99.8 (unchanged w/w), yielding 11.1%. GOGC Eurobonds (GEOROG) were trading at 105.4 (+0.2% w/w), yielding 5.2%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 109.8 (+0.1% w/w), yielding 5.5%. 

Georgian Sovereign Eurobonds (GEORG) closed at 111.8 (+0.2% w/w) at 3.5% yield to maturity.

Equities

BGEO Group (BGEO LN) shares closed at GBP 34.63/share (-1.42% w/w and -3.30% m/m). More than 438k shares traded in the range of GBP 34.25 – 35.90/share. Average daily traded volume was 94k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.77% w/w and gained 0.35% m/m. The volume of BGEO shares traded was at 1.11% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 16.24 (+0.19% w/w and -3.56% m/m). More than 152 shares changed hands in the range of GBP 16.00 – 16.81/share. Averaged daily traded volume was 71k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.60/share (-3.36% w/w and -10.00% m/m). More than 62k shares were traded in the range of GBP 3.60 – 3.79/share.  Average daily traded volume was 28k in the last 4 weeks. The volume of GHG shares traded was at 0.02% of its capitalization.

Equities

BGEO Group (BGEO LN) shares closed at GBP 34.63/share (-1.42% w/w and -3.30% m/m). More than 438k shares traded in the range of GBP 34.25 – 35.90/share. Average daily traded volume was 94k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.77% w/w and gained 0.35% m/m. The volume of BGEO shares traded was at 1.11% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 16.24 (+0.19% w/w and -3.56% m/m). More than 152 shares changed hands in the range of GBP 16.00 – 16.81/share. Averaged daily traded volume was 71k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.60/share (-3.36% w/w and -10.00% m/m). More than 62k shares were traded in the range of GBP 3.60 – 3.79/share.  Average daily traded volume was 28k in the last 4 weeks. The volume of GHG shares traded was at 0.02% of its capitalization.