The FINANCIAL — Last week, London traded Bank of Georgia Holdings (BGEO LN) share price increased 1.3% to GBP 10.23. During the week, up to 236,000 shares were traded in the range of GBP 9.94-10.40.
In the debt world, Georgia Sovereign (GEORG), Georgian Railway (GRAIL 07/22) and Bank of Georgia (GEBGG) Eurobonds prices were up 0.1% to 116.5 (4.5% YTM), 0.2% to 114.2 (5.8% YTM) and 0.1% to 102.4 (7.1% YTM), respectively. Georgian Oil and Gas Corporation (GEOROG) Eurobonds price declined 0.1% to 104 (5.8% YTM), On the Georgian Stock Exchange, only Liberty Bank (BANK GG) shares were traded closing at GEL 0.008 (unchanged), while the BG Index was unchanged at 529.9.
Money market — Last week, the National Bank of Georgia (NBG) issued 7-day refinancing loans in the amount of GEL 339mn with an average yield amounting 5.52% (up 1bps). NBG also sold 182-day, GEL 30mn Certificates of Deposits last week. The average yield was 6.13% (up 8bps).
As for the treasury debt, Ministry of Finance sold two-year T-notes in the amount of GEL 5mn with the yield ranging between 6.77-6.97%. Average yield equalled 6.87% (down 3bps). The next five-year T-notes auction is planned for December 19 with total estimated emission of GEL 10mn.
3Q12 preliminary FDI down 38% y/y — Georgia’s 3Q12 FDI decreased 38% y/y to US$ 195mn according to GeoStat’s preliminary figures. The financial sector was the largest FDI recipient with 24% of net inflows, followed by the energy sector at around 21% and transports and communications sector (17%). Netherlands topped the list of investors with US$ 49mn (25% of net inflows), with the Turkey coming second at roughly US$ 33mn (17% of net inflows).
Fitch affirms Georgia’s ratings at BB — Fitch affirmed Georgia’s (GEORG) LT foreign and local currency Issuer Default Ratings at BB- with stable outlook. The agency expects the country’s real GDP growth to exceed 5% in 2013-14, inflation to stay below 6% in 2013 and the government debt to fall below 30% of GDP. Fitch also noted that the rating is constrained with high current account deficit (12% of GDP), which is not expected to significantly narrow in 2013.
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