Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

International reserves up 5.8% y/y in October 2017

Gross international reserves were up 6.7% y/y to US$ 2.9bn in October 2017, while reserves were down 2.6% m/m, according to NBG. There were no FX interventions by central bank in October. Change in reserves was attributed to government FX operations and/or asset revaluation.

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.3% yield, trading at 103.2 (unchanged w/w). Bank of Georgia GEL-denominated Eurobonds (GEBGG) were trading at 100.5 (+0.5% w/w), yielding 11.0%. GOGC Eurobonds (GEOROG) were trading at 107.3 (+0.1% w/w), yielding 4.4%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 111.7 (-0.1% w/w), yielding 4.9%.

Georgian Sovereign Eurobonds (GEORG) closed at 112.4 (-0.% w/w) at 3.0% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

BGEO Group (BGEO LN) shares closed at GBP 35.57/share (-0.95% w/w and +8.12% m/m). More than 372k shares traded in the range of GBP 35.42 – 37.05/share. Average daily traded volume was 66k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, lost 2.21% w/w and lost 0.62% m/m. The volume of BGEO shares traded was at 0.94% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 17.00 (-2.35% w/w and +6.18% m/m). More than 96k shares changed hands in the range of GBP 17.00 – 17.63 share. Averaged daily traded volume was 25k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.37/share (-4.03% w/w and +9.51% m/m). More than 18k shares were traded in the range of GBP 3.29 – 3.60/share. Average daily traded volume was 40k in the last 4 weeks. The volume of GHG shares traded was at 0.01% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 1,020mn (US$ 388.0mn).

Ministry of Finance Treasury Notes:

2-year GEL 20.0mn (US$ 7.7mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on November 8, 2017. The weighted average yield was fixed at 7.327%.

Ministry of Finance Treasury Notes:

182-days GEL 20.0mn (US$ 7.7mn) T-bills of Ministry of Finance were sold at the auction held at NBG on November 8, 2017. The weighted average yield was fixed at 7.096%. The nearest treasury security auction is scheduled for November 29, 2017, where GEL 20.0mn nominal value 5-year T-Notes will be sold.