Банкеръ Daily


Who Will Conquer the Elevation BGN 1,000,000,000 of the BSE's Market Capitalization?*

Low activity and weak trade have further shrunk the market valuation of most of the public companies. However, there is one company that has rushed to reach the market capitalization of BGN 1,000,000,000 on the Bulgarian Stock Exchange AD. "Tchaikapharma High quality medicines" has persistently pursued the coveted goal throughout 2019, thus becoming the most interesting stock market phenomenon for the period from January to December. In each of the last quarters the company, which owns  a manufacturing facility in Varna,  has attracted investor interest. And, as a result, its market valuation is growing.  According to a study by BANKER at the end of last year, Tchaikapharma High Quality Medicines was the most expensive publicly traded company.

The drug maker is among the few that continues to grow - it adds 2 more levs to his share price - from 8.90 to 10.90 levs  per issue between the first and the  last day of the previous  year. And at the end of December  with a market valuation of BGN 895,980,000, the company maintained its first position on BSE-Sofia, as it did in the first, second and third quarters.

If we look at the stock market today, we will see that market participants are already evaluating Tchaikapharma High Quality Medicines at BGN 928 860 000 at a price of BGN 11.30 per share.

Closest to the stock market leader is another pharmaceutical company - Sopharma AD, whose valuation is twice as low. According to investors  at the end of December  it costs BGN 458,312,857. Between the first and the last day of 2019 it  "slimmed" by more than BGN 13 million. The drug maker lost BGN 0,05 of  the stock price and in the last 2019 exchange session players paid  BGN  3.40  a share.

CEZ Distribution Bulgaria AD and Gradus AD - Stara Zagora are the other two publicly traded companies that have achieved over BGN 400 million in market capitalization.

Three of the public banks also find a place in the ranking of the 30 largest BSE-Sofia companies. First Investment Bank AD is number one among them - on the fifth position, with a capitalization of BGN 391 600 000. They had months of worries and wobbling on the price ladder and  fell below the important price of BGN 3 per share between October and mid-December.  At the end of the year its stock quotes became quite attractive - BGN 3.56 per share.

Among the 30 largest companies on the stock exchange are also Central Cooperative Bank AD (with an estimate of BGN 194.51 million) and Bulgarian-American Credit Bank AD (with BGN 160.49 million). The rise in their shares prices  added  value to their market valuation.

At the bottom of the list of the most expensive Bulgarian companies group are two firms - former privatization funds, which failed to capture even the level of BGN 100 million market  valuation.

Bulgarians have less and less excess money. They find it harder to cope with their available income and their debts are getting bigger, according to the debt collection companies data. Accounts payable to banks, bills to mobile operators and those for electricity, water and central heating are difficult to handle. On the other hand, only a quarter of Bulgarian households manage to save every month. Having that in mind, we cannot expect the stock market to be in a flourishing situation.

And probably some "flowery  spots" will appeal again to the market participants of the Bulgarian Stock Exchange AD.

* Market capitalization  or market value  is the total value of the issued shares of a publicly traded company. Usually  market capitalization is the multiplication result of the number of shares issued at an average weighted price per share on the day of the exchange session.

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