Financial and business news from Bulgaria

First company on the Bulgarian exchange demanded a stop from trading

Battery maker Monbat Plc became the first company to demand a suspension of trading in its shares and bonds on the Bulgarian Stock Exchange, reported, citing a request from the company.
The company is pushing for the measure because of the declared state of emergency and wants it to last until April 13. The legal basis for suspension is the rules of the exchange that allow the suspension of trading at events that may affect the price of the securities.

Just for a day — on Friday, the shares of “Monbat” declined by 7.7% to 4.8 BGN per share, while the decline for the last year is 31%. At the same time, the SOFIX index fell by 23.3% for the last year, noted The index's cut for the past month is up 24 per cent, with shares heading sharply down on March 9.

The main production facilities of “Monbat” are in Montana region, where it is one of the outbreaks of coronavirus in Bulgaria.

“ Monbat” produces rechargeable batteries in Montana and Dobrich, as well as recycling plants for lead in Montana, Serbia and Romania. In 2017, the company acquired recycling facilities in Italy, in the city of Sofia. Brescia, in the virus-affected area of Lombardy.

Meanwhile, the Bulgarian exchange followed the negative trends in foreign stock markets. BSE's leading SOFIX stock index tumbled 5.85% on Monday afternoon. The BGBX40 broad index fell 5.5% and the Equal-weighted BGTR30 by 3.69%. The BGREIT Special Investment Companies Index reported the weakest decline at 1.73%.

Around noon on Monday the biggest decline in SOFIX was the FIB shares — 19.13%, Trust United Holding — 16.29%, and Chimimport — 15.8%.

After Wall Street had to close temporarily last week due to a sharp drop in prices, the BSE on Monday assured that trading sessions would not be halted at this stage. However, the Bulgarian exchange expanded by 30% the price ranges that could cause a temporary suspension of trading.