Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy -- FDI up 9.4% y/y. FDI was up 9.4% y/y to US$ 389.2mn in 2Q18, according to GeoStat’s preliminary figures.

The energy sector was the largest FDI recipient at US$ 108.8mn (+651.5% y/y, 28.0% of total), followed by transport and communication sector at US$ 77.0mn (-33.3% y/y, 19.8% of total), financial sector at US$ 64.0mn (+3,171.7% y/y, 16.5% of total) and real estate at US$ 34.3mn (-23.7% y/y, 8.8% of total). Azerbaijan topped the list of investors with US$ 80.5mn (-34.4% y/y), followed by Czech Republic at US$ 77.9mn (+231.5% y/y), and Netherlands at US$ 65.3mn (+30.2% y/y).

Exports up 16.6% y/y in August 2018

In August 2018, exports increased 16.6% y/y to US$ 275.6mn, imports grew by 8.3% y/y to US$ 762.1mn and the trade deficit widened 4.1% y/y to US$ 486.5mn, according to GeoStat’s preliminary figures. In 8M18, trade deficit was up 17.8% to US$ 3.8bn as exports increased by 27.1% y/y to US$ 2.1bn and imports were up 21.0% y/y to US$ 6.0bn. Detailed foreign trade statistics will be available on September 19, 2018.

Fixed income

Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 6.4% yield, trading at 98.2 (-0.1% w/w). Bank of Georgia GEL-denominated Eurobonds (GEBGG) were trading at 100.5 (unchanged w/w), yielding 10.7%. Georgia Capital Eurobonds (GEOCAP) were trading at 92.1 (-0.01% w/w), yielding 7.9%.

GOGC Eurobonds (GEOROG) were trading at 103.2 (+0.1% w/w), yielding 5.4%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 106.0 (unchanged w/w), yielding 6.0%.

Georgian Sovereign Eurobonds (GEORG) closed at 105.3 (unchanged w/w) at 4.6% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

Bank of Georgia Group (BGEO LN) shares closed at GBP 17.74/share (+4.16% w/w and +9.54% m/m). More than 178k shares traded in the range of GBP 16.75 – 17.82/share. Average daily traded volume was 40k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 0.80% w/w and lost 0.67% m/m. The volume of BGEO shares traded was at 0.36% of its capitalization.

Georgia Capital (CGEO LN) shares closed at GBP 10.20/share (-0.78% w/w and +3.56% m/m). More than 200k shares traded in the range of GBP 9.83 – 10.28/share. Average daily traded volume was 47k in the last 4 weeks. The volume of CGEO shares traded was at 0.52% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 15.94 (+0.63% w/w and +2.97% m/m). More than 61k shares changed hands in the range of GBP 15.64 – 16.26/share. Average daily traded volume was 21k in the last 4 weeks. The volume of TBCG shares traded was at 0.11% of its capitalization.

Georgia Healthcare Group (GHG LN) shares closed at GBP 2.36/share (+1.95% w/w and -9.07% m/m). More than 23k shares were traded in the range of GBP 2.30 – 2.40/share. Average daily traded volume was 37k in the last 4 weeks. The volume of GHG shares traded was at 0.02% of its capitalization. BGEO Group PLC (BGEO LN)

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 1,230mn (US$ 470.2mn).

Ministry of Finance Benchmark Bonds:

2-year GEL 40.0mn (US$ 15.4mn) Benchmark Bonds of Ministry of Finance were sold at the auction held at NBG on September 12, 2018. The weighted average yield was fixed at 7.232%.

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 7.7mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on September 12, 2018. The weighted average yield was fixed at 7.139%.