East European Markets Lose Further Ground

Market Snapshot of east european markets

(PRWEB) May 30, 2005 -- After two declines during this week SOFIX managed to come out on a positive territory,but only with the minimum 0,06% to 795,67 points. The blue-chip index was supported mainly by the shares of Bulgartabak Holding and Neohim, which gained 6,67% and 2,3% respectively. On the other side of the spectrum were the Black Sea resorts and mainly Slunchev briag, which dropped 3,7% of its market cap. The broad BG40 decreased for the third time however only with the minimum 0,04% to 111,71 points. The main reason for the negative movement came from the holding companies, which could not attract the investors interest even after publishing their regular reports. Total turnover during todays session was relatively low: BGN 3,832 million.

The Romanian capital market also witnessed series of declines throughout the last five days. The all-stock BET-C index lost another 1,22% and finished the week with 173,27 points lower than previous Friday -- at the level of 3084,15 points. 34 of the indicators positions lost ground, top losers among them being the chemical companies Carbochim (-11,18%) and Policolor (-10,08%). Among the few gainers we could see the refinery Astra (+9,27%) and the building materials producer Silcotub (+8,74%). Total turnover today increased to EUR 5 415 544, the most traded stocks being Petrom, BRD Bank and the financial company SIF Oltenia.

In early Friday morning trading blue chips staged an attempt to rally on positive news from Western equity markets but in the absence of internal drivers, the market receded into a side trend punctuated by losses during the afternoon session. As a result the MICEX 10 index lost another 0,51% to 1060,05 points. Gazprom shares came under pressure Friday on news from the Ministry of Industry and Energy that the state is doubtful whether it will be able to deliver on its promise to consolidate a controlling stake in Gazprom by the June 24 AGM.This news came as another harsh wake-up call for investors, who will once again see their hopes shattered due to the unclear timeframe for ring fence removal.

for more info: www.financebulgaria.com

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