Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

Real GDP grew 5.3% y/y in March 2017

Georgia’s economy expanded 5.3% y/y in March 2017, after growing 4.4% y/y in previous month, according to GeoStat’s rapid estimates. Overall, in 1Q17 GDP growth was 5.0% y/y compared to 3.3% growth in 1Q16. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.

NPLs at 3.7% y/y in March 2017

In March 2017, the banking sector loan portfolio increased 13.0% y/y after growing 12.4% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 17.9% y/y and 0.6% m/m to GEL 18.8bn (US$ 7.6bn). Deposits were up 10.6% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 12.6% y/y and down 2.8% m/m to GEL 16.1bn (US$ 6.6bn). Deposit dollarization reached 69.2% (-1.6ppts y/y and -1.3ppts m/m). NPLs stood at 3.7% in March 2017, up 0.5ppts y/y and down 0.1ppts m/m.

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.8% yield, trading at 101.0 (unchanged w/w). GOGC Eurobonds (GEOROG) were trading at 105.5 (+0.3% w/w), yielding 5.2%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 110.5 (+0.1% w/w), yielding 5.4%. 

Georgian Sovereign Eurobonds (GEORG) closed at 111.0 (+0.1% w/w) at 3.8% yield to maturity.

Equities

BGEO Group (BGEO LN) shares closed at GBP 36.00/share (+2.68% w/w and +12.50% m/m). More than 533k shares traded in the range of GBP 34.63 – 36.33/share. Average daily traded volume was 111k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.37% w/w and gained 3.54% m/m. The volume of BGEO shares traded was at 1.35% of its capitalization.

 TBC Bank Group (TBCG LN) closed the week at GBP 16.25 (+5.59% w/w and +8.33% m/m). More than 927k shares changed hands in the range of GBP 15.30 – 16.41/share. Averaged daily traded volume was 68k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.55/share (-2.07% w/w and -2.07% m/m). More than 162k shares were traded in the range of GBP 3.55 – 3.65/share.  Average daily traded volume was 15k in the last 4 weeks. The volume of GHG shares traded was at 0.12% of its capitalization.

Equities

BGEO Group (BGEO LN) shares closed at GBP 36.00/share (+2.68% w/w and +12.50% m/m). More than 533k shares traded in the range of GBP 34.63 – 36.33/share. Average daily traded volume was 111k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 1.37% w/w and gained 3.54% m/m. The volume of BGEO shares traded was at 1.35% of its capitalization.

 TBC Bank Group (TBCG LN) closed the week at GBP 16.25 (+5.59% w/w and +8.33% m/m). More than 927k shares changed hands in the range of GBP 15.30 – 16.41/share. Averaged daily traded volume was 68k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.55/share (-2.07% w/w and -2.07% m/m). More than 162k shares were traded in the range of GBP 3.55 – 3.65/share.  Average daily traded volume was 15k in the last 4 weeks. The volume of GHG shares traded was at 0.12% of its capitalization.