Economy -- Exports up 15.0% y/y in October 2018

Economy -- Exports up 15.0% y/y in October 2018

Economy -- Exports up 15.0% y/y in October 2018

The FINANCIAL -- In October 2018, exports increased 15.0% y/y to US$ 303.0mn, while import growth accelerated to 18.7% y/y and reached US$ 867.9mn and the trade deficit widened 20.7% y/y to US$ 565.0mn, according to GeoStat’s preliminary figures.

In 10M18, trade deficit was up 16.4% to US$ 4.8bn as exports increased by 24.5% y/y to US$ 2.8bn and imports were up 19.2% y/y to US$ 7.6bn. Detailed foreign trade statistics will be available on November 19, 2018.

Money transfers up 11.6% y/y in October 2018

In October 2018, money transfers increased 11.6% y/y to US$ 137.2mn, after growing 5.6% y/y in the previous month, according to NBG. From major remitting countries, money transfers were up from Russia (+1.0% y/y, 28.9% of total), Italy (+31.3% y/y, 12.2% of total), Greece (+16.0% y/y, 11.2% of total), USA (+16.9% y/y, 10.5% of total) and Israel (+8.9% y/y, 8.7% of total), while remittances were down from Turkey (-25.3% y/y, 5.5% of total). Overall, in 10M18 money transfers were up 15.5% y/y to US$ 1.3bn.

NBG purchased US$ 10.0mn

On November 16, 2018, the NBG intervened on the FX market and purchased US$ 10.0mn. Overall, during April-November 2018, the NBG purchased US$ 132.5mn on its 12 FX auctions.

Fixed income

Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 6.4% yield, trading at 98.4 (+0.2% 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 (-0.1% w/w), yielding 8.0%.

GOGC Eurobonds (GEOROG) were trading at 101.4 (-0.3% w/w), yielding 6.1%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 106.0 (-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 15.75/share (-6.03% w/w and -4.24% m/m). More than 264k shares traded in the range of GBP 15.38 – 16.84/share. Average daily traded volume was 60k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, lost 2.58% w/w and lost 2.80% m/m. The volume of BGEO shares traded was at 0.54% of its capitalization.

Georgia Capital (CGEO LN) shares closed at GBP 11.80/share (unchanged w/w and +2.79% m/m). More than 106k shares traded in the range of GBP 11.50 – 12.00/share. Average daily traded volume was 41 in the last 4 weeks. The volume of CGEO shares traded was at 0.28% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 15.88 (-3.52% w/w and -0.75% m/m). More than 62k shares changed hands in the range of GBP 15.66 – 16.50/share. Average daily traded volume was 24k 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 2.20/share (-6.38% w/w and -4.35% m/m). More than 59k shares were traded in the range of GBP 2.20 – 2.42/share. Average daily traded volume was 11k in the last 4 weeks. The volume of GHG shares traded was at 0.04% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 1,340mn (US$ 495.5mn).

Ministry of Finance Benchmark Bonds:

2-year GEL 40.0mn (US$ 14.7mn) Benchmark Bonds of Ministry of Finance were sold at the auction held at NBG on November 14, 2018. The weighted average yield was fixed at 7.214%.

Ministry of Finance T-Bills:

182-days GEL 20.0mn (US$ 7.4mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on November 14, 2018. The weighted average yield was fixed at 7.030%.