Economy - Tourist arrivals up 15.1% y/y in October 2018

Economy - Tourist arrivals up 15.1% y/y in October 2018

Economy - Tourist arrivals up 15.1% y/y in October 2018

The FINANCIAL -- Total international visits to Georgia increased 8.5% y/y to 0.61mn in October 2018, according to the Ministry of Internal Affairs. A 15.1% y/y growth in tourist arrivals (0.41mn trips, 66.6% of total) drove the growth.

Out of top countries, in October 2018, international visitors continued to increase from Russia (+30.5% y/y) and Azerbaijan (+4.7% y/y), while visitors were down from Armenia (-2.9% y/y), Turkey (-12.1% y/y) and Iran (-4.5% y/y). Total international visitors stood at 6.3mn (+12.5% y/y) in 10M18.

International reserves stood at US$ 3.2bn in September 2018

Gross international reserves were up 4.2% y/y and up 8.2% m/m to US$ 3.2bn in September 2018, according to NBG. Growth in reserves was attributed to FX auctions (total purchase of US$ 25mn in September), government FX operations and/or asset revaluation.

NBG purchased US$ 10.0mn

On November 9, 2018, the NBG intervened on the FX market and purchased US$ 10.0mn. Overall, during April-November 2018, the NBG purchased US$ 122.5mn on its 11 FX auctions.

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 92.2 (-0.1% w/w), yielding 7.9%.

GOGC Eurobonds (GEOROG) were trading at 101.7 (-0.2% w/w), yielding 6.0%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 106.2 (-0.2% w/w), yielding 5.9%.

Georgian Sovereign Eurobonds (GEORG) closed at 105.3 (unchanged w/w) at 4.5% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

Bank of Georgia Group (BGEO LN) shares closed at GBP 16.76/share (+2.02% w/w and -2.17% m/m). More than 242k shares traded in the range of GBP 16.12 – 17.33/share. Average daily traded volume was 60k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, lost 1.15% w/w and lost 2.28% m/m. The volume of BGEO shares traded was at 0.49% of its capitalization.

Georgia Capital (CGEO LN) shares closed at GBP 11.80/share (-2.33% w/w and +2.61% m/m). More than 186k shares traded in the range of GBP 11.65 – 12.75/share. Average daily traded volume was 60k in the last 4 weeks. The volume of CGEO shares traded was at 0.49% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 16.46 (-3.74% w/w and -1.91% m/m). More than 62k shares changed hands in the range of GBP 16.00 – 17.00/share. Average daily traded volume was 26k 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 2.35/share (+2.17% w/w and +9.81% m/m). More than 21k shares were traded in the range of GBP 2.35 – 2.44/share. Average daily traded volume was 21k 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 1,170mn (US$ 430.1mn).

Certificates of deposit: NBG sold 91-day, GEL 20mn (US$ 7.4mn) certificates of deposit, with an average yield of 7.13% (unchanged from previous issue).

Ministry of Finance Benchmark Bonds:

1-year GEL 40.0mn (US$ 14.5mn) Benchmark Bonds of Ministry of Finance were sold at the auction held at NBG on November 7, 2018. The weighted average yield was fixed at 7.142%. The nearest treasury security auction is scheduled for November 7, 2018, where GEL 40.0mn nominal value 1-year T-Bills will be sold.