Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

Weekly Market Watch by Galt & Taggart

The FINANCIAL -- Economy

Exports up 25.7% y/y in January 2018

In January 2018, exports increased 25.7% y/y to US$ 222.2mn, imports were up 18.1% y/y to US$ 593.6mn and the trade deficit widened 14.0% y/y to US$ 371.4mn according to GeoStat’s preliminary figures. Detailed foreign trade statistics will be available on February 19, 2018.

Money transfers up 31.1% y/y in January 2018

In January 2018, money transfers increased 31.1% y/y to US$ 110.0mn after growing 16.3% y/y in previous month, according to NBG. Money transfers were up from all major remitting countries: Russia (+17.0% y/y, 28.1% of total), Italy (+43.1% y/y, 12.5% of total), Greece (+33.4% y/y, 11.3% of total), Israel (+84.3% y/y, 10.7% of total), USA (+13.3% y/y, 9.7% of total) and Turkey (+41.3% y/y, 8.0% of total).

Fixed income

Corporate Eurobonds: BGEO Group Eurobonds (BGEOLN) closed at 5.1% yield, trading at 104.2 (+0.2% w/w). Bank of Georgia GEL-denominated Eurobonds (GEBGG) were trading at 100.5 (unchanged w/w), yielding 10.7%. GOGC Eurobonds (GEOROG) were trading at 106.1 (+0.1% w/w), yielding 4.7%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 111.1 (-0.1% w/w), yielding 4.9%.

Georgian Sovereign Eurobonds (GEORG) closed at 109.5 (-0.1% w/w) at 3.6% yield to maturity. Georgia Eurobonds, YTM (%)

Equities

BGEO Group (BGEO LN) shares closed at GBP 33.26/share (-2.81% w/w and -11.45% m/m). More than 352k shares traded in the range of GBP 32.72 – 35.06/share. Average daily traded volume was 67k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, gained 2.64% w/w and lost 5.52% m/m. The volume of BGEO shares traded was at 0.90% of its capitalization.

TBC Bank Group (TBCG LN) closed the week at GBP 16.60 (+5.20% w/w and -4.82% m/m). More than 55k shares changed hands in the range of GBP 15.72 – 16.86 share. Averaged daily traded volume was 14k in the last 4 weeks.

Georgia Healthcare Group (GHG LN) shares closed at GBP 3.35/share (+3.08% w/w and -2.90% m/m). More than 33k shares were traded in the range of GBP 3.11 – 3.40/share. Average daily traded volume was 7k in the last 4 weeks. The volume of GHG shares traded was at 0.03% of its capitalization.

Money Market

Refinancing loans: National Bank of Georgia (NBG) issued 7-day refinancing loans of GEL 960.0mn (US$ 392.2mn).

Ministry of Finance Treasury Notes:

2-year GEL 40.0mn (US$ 16.4mn) T-Notes of Ministry of Finance were sold at the auction held at NBG on February 14, 2018. The weighted average yield was fixed at 7.573%. The nearest treasury security auction is scheduled for February 21, 2018, where GEL 30.0mn nominal value 5-year T-Notes will be sold.

Ministry of Finance Treasury Bills:

182-days GEL 20.0mn (US$ 8.2mn) T-Bills of Ministry of Finance were sold at the auction held at NBG on February 14, 2018. The weighted average yield was fixed at 7.319%.