Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

International reserves up 2.9% y/y in July 2017

Gross international reserves were up 2.9% y/y to US$ 2.9bn in July 2017, while reserves were down 0.6% m/m, according to NBG. There were no FX interventions by central bank in July. Change in reserves was attributed to government FX operations and/or asset revaluation.

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.7% yield, trading at 101.4 (-0.8% 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 105.7 (unchanged w/w), yielding 5.0%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 109.9 (-0.1% w/w), yielding 5.4%. 

Georgian Sovereign Eurobonds (GEORG) closed at 112.0 (+0.1% w/w) at 3.4% yield to maturity.

BGEO Group (BGEO LN) shares closed at GBP 33.92/share (-6.17% w/w and -3.77% m/m). More than 252k shares traded in the range of GBP 33.76 – 36.20/share. Average daily traded volume was 62k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, lost 2.13% w/w and gained 1.71% m/m. The volume of BGEO shares traded was at 0.64% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 15.60 (-8.72% w/w and -6.64% m/m). More than 104k shares changed hands in the range of GBP 15.45 – 17.05/share. Averaged daily traded volume was 31k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.45/share (-3.46% w/w and -5.48% m/m). More than 147k shares were traded in the range of GBP 3.32 – 3.55/share.  Average daily traded volume was 17k in the last 4 weeks. The volume of GHG shares traded was at 0.11% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 950mn (US$ 397.5mn). 

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 8.4mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on August 9, 2017. The weighted average yield was fixed at 7.126%..

Ministry of Finance Treasury Notes:

2-year GEL 20.0mn (US$ 8.4mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on August 9, 2017. The weighted average yield was fixed at 7.520%. The nearest treasury security auction is scheduled for august 16, 2017, where GEL 20.0mn nominal value 10-year T-Notes will be sold.