Bulgarian Capital Markets at a Glance

Transcription

1 Bulgarian Capital Markets at a Glance Ivan Takev, CEO, BSE London, May 18 th 2017

2 Disclaimer The materials, contents, and references may not be used for and shall not be deemed to be a public offering of securities in the United Kingdom. These materials do not constitute an offer of Instruments to the public in the United Kingdom. These documents do not constitute advertisement, neither a prospectus for the purposes of Directive 2003/71/EC. Investors should not subscribe for any securities referred to in these documents. This presentation is set forth for informational purposes only. By attending all viewers acknowledge that (i) the presentation of this material neither constitutes an offer to sell nor a solicitation of an offer to buy the financial instruments described, (ii) no recommendation is made concerning the financial instruments described and (iii) it may be unlawful to offer to sell or to solicit an offer to buy the described financial instruments in certain jurisdictions. The opinions expressed represent personal opinion of the author only. The author may possess investments in some of the financial instruments analyzed and commented. 2

3 Milestones Premium Market BG 40 CGIX Bulgarian Stock Exchange SEC License 1997 SOFIX New Market Segmentation BGX Bulgarian Central Depository First IPO BSO 3

4 Infrastructure overview MiFID II ready Easy remote access Commonly adopted trading model XETRA Market Highspeed operation Robust functionalities Large capacity 4

5 Macro Highlights GDP (EUR million) Real GDP growth 1.30% 1.60% 3.00% 3.40% Short-term interest rates 1.14% 0.79% 0.54% 0.15% BGN/EUR exchange rate* Population n.d. GDP per capita (nominal, EUR) Market Cap (EUR million) Market Cap/GDP 12.15% 11.67% 9.94% 10.54% Source: BNB * Pegged to DEM (hence to EUR) since

6 EUR (billion) Macro Highlights Market Cap/GDP 50% 45% 40% % 30% 25% 20% 15% 10% 5% 0% Source: BNB * Pegged to DEM (hence to EUR) since 1999 Mcap GDP Mcap/GDP 6

7 Market Highlights (1) Trading value (EUR million) Capital raised (EUR million) Companies raised capital Average capital raised per company (EUR million) IPOs SOFIX performance Jan 2010-May SOFIX performance Last 365 days SOFIX value P/E P/B SOFIX value P/E P/B 7

8 USD (billion) Market Highlights (2) FDI vs. SOFIX performance FDI Source: The World Bank, BSE 8 SOFIX

9 Market Highlights (3) 30% Turnover Velocity (Main Market vs. SOFIX constituents) 25% 20% 15% 10% 5% 0% Source: The World Bank, BSE BSE Turnover Velocity SOFIX Turnover Velocity 9

10 Market Cap (EUR billion) Avg Monthly Traded Value (EUR Million) Market Highlights (4) Main Market Cap (eqities only) and Monthly Traded Value Average Monthly Traded Value Market Cap 10

11 Market Highlights (5) Monthly Traded Value vs. 12-month Median Monthly Traded Value Monthly Traded Value 12-month median Monthly Ttraded Value 11

12 Market Highlights (6) 4.00% Potential median spread after two-sided execution of EUR 10, % 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% Source: BSE Sopharma Advance Terrafund Chimimport 12

13 Market Highlights (7) Asset Management Companies 31 Net Assets Under Managements (AuM) of mutual funds (EUR million) 532 Net Assets Under Managements (AuM) of pension funds (EUR million) Market Cap held by institutional investors (EUR million) 996 Share ownership by institutional investors 17.86% Share ownership in SOFIX Companies by institutional investors 6.11% Share ownership in BGBX40 Companies by institutional investors 9.00% Institutional investors include investment funds, UCITs, Pension insurance companies

14 EUR (million) Market Highlights (8) 115 Investment Funds AuM Bulgarian Investment funds total assets under management (EUR) 0 Total number of investment funds 14

15 Corporate Governance First corporate governance code National Corporate Governance Code 2009 National Corporate Governance Committee 2011 CGIX 2012 Parallel English disclosure

16 EUR (million) Corporate Governance (2) Total operating income /SOFIX and CGIX constituents/ CGIX Constituents SOFIX Constituents 16

17 Why invest in Bulgaria 4.5% Dividend yield and interest rates comparison 10% 4.0% 4.06% 3.96% 9% 3.5% 8% 3.0% 2.5% 2.0% 1.5% 5.97% 1.18% 5.58% 1.49% 3.04% 4.93% 1.40% 2.01% 3.54% 1.87% 1.84% 1.50% 2.25% 7% 6% 5% 4% 3% 1.0% 0.93% 2.31% 2% 0.5% 1.15% 1% 0.0% average dividend yield all listed companies average dividend yield SOFIX average interest rate on 6 m to 1y deposits 17 0%

18 Why invest in Bulgaria Natural Person Capital Gains Taxation Natural Person Dividends Taxation 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% Bulgaria Romania Poland Austria Germany UK 0% Bulgaria Romania Poland Austria Germany UK 30% 20% 10% 0% Legal Person Capital Gains Taxation Bulgaria Romania Poland Austria Germany UK 30% 25% 20% 15% 10% 5% 0% Legal Person Dividend Taxation Bulgaria Romania Poland Austria Germany UK Corporate Income Taxation 30% 25% 20% 15% 10% 5% 0% Bulgaria Romania Poland Austria Germany UK 0% tax on capital gains; 5% dividend withholding tax; 10% flat corporate & personal income tax 18

19 Why invest in Bulgaria 25 Trading fees (bps) Montenegro SE Bucharest SE BSE-Sofia Ljubljana SE Zagreb SE Belgrade SE Banja Luka Purchase Sale SE Macedonian SE Note: BSE charges per executed order regardless of the number of executions it may trigger. 19

20 Why invest in Bulgaria Index Last 52w performance 200% Local Indices Performance SOFIX 48.51% WIG 29.39% ATX 29.22% 160% BET 27.64% MBI % 120% DAX 23.90% BUX 22.64% 80% CAC % RTS 17.17% 40% BELEX % FTSE % 0% CROBEX 12.64% ISE % -40% SMI 10.70% PX Index 10.02% SASX % BGREIT SOFIX BGTR30 20

21 In the pipeline Government Debt Market Focus on SMEs Order routing platform Five exchanges connected Four more to join FIX 4.4 implementation Expected launch Q Full domestic debt coverage Stepping stone for other instruments SME Private market SME Growth Market Crowdfunding Platform 21

22 But still.why? Favourable Taxation Efficient infrastructure Opportunities Attractive Valuations 22

23 Thank you!