Weekly financial and economic review
Investor confidence in the euro area has declined for the fifth consecutive month, reaching its lowest value since October 2016. The reason for the worse presentation is the concerns about the non-systemic government that will take over power in Italy, as well as the trade disputes between the European Union and the United States. At the same time, orders for German factories fell for the fourth consecutive month in April and this raises concerns that growth in Europe’s largest economy is slowing down. The Ministry of Economy reported today that orders dropped 2.5 percent in April compared to March, with a particularly strong decrease in orders from domestic customers and from the euro area. In comparison, market expectations were for an increase of 0.8%. On an annual basis, contracts are shrinking by 0,1% - the first annual drop since 2016.
It is obvious that trade disputes between the US and Europe are beginning to take their first victims. In order to navigate the situation, we also need to look at data from the US trade deficit. It decreased for the second consecutive month in April after the reduction of imports of goods, mostly from China. The trade ministry said the trade deficit fell to $46.2 billion in April compared to $47.2 billion in March and is at the lowest level since September. Exports have increased to record $211.2 billion and imports have decreased to $257.4 billion. The trade deficit in goods with China fell by 8.1 per cent in April and with Mexico - by 29.8 per cent. In April, US exports were supported by the supply of soybeans (+18.42 per cent) whose main market is China.
The company has submitted an application for admission to trading on the BSE Core Market, a Sector for primary public offering. The issue amounts to 62 194 444 shares with a denomination of 1 BGN and the stock code will be GR6T. The 62 194 444 shares in question are not all issued by the company, but those that can be offered as much as possible in the auctions (investments) planned for 18 and 19 June 2018.
There are 55 555 556 shares, of which 27 777 778 new and 27 777 778 existing with a price between BGN 1.80 and BGN 2.35. This will happen on June 18th.
If the interest is very high, the owners will also offer an additional amount of 6 638 888 existing shares for sale. This could happen on June 19th.
The supply procedure is new for BSE-Sofia and therefore completely unknown.
Investors will be able to enter market and limited orders, for the limited leading factor is the price and for the market - the time of entry. All orders will be ranked at one price and this is the lowest where all the proposed shares are sold. So if the demand is insufficient, the transactions will be at the minimum price of 1.8 BGN.
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