Bulgarian companies will become more expensive, forecasts the director of the BSE

At the height of the National Information Campaign for the introduction of the euro, the CEO of the Bulgarian Stock Exchange (BSE), Manyu Moravenov, made a series of optimistic forecasts for the future of the Bulgarian capital market. During an event held in Blagoevgrad, he stated emphatically that Bulgarian companies will never again be traded so cheaply, and their price will increase significantly.

Moravenov's statement comes against the backdrop of growing interest in the capital market in Bulgaria. According to him, the introduction of the euro will bring tangible benefits to the market, as it represents a "representative sample of the Bulgarian economy". According to the director, the expected price growth is already underway, as the market trades not only assets but also "expectations". As proof of this trend, he pointed to the main stock exchange index SOFIX, which has been ranked among the leaders in growth in Europe. Another positive signal is the increase in the number of small investors, which has grown by 30% this year alone.

Elimination of currency risk and improved credit rating

One of Moravenov's main arguments in favor of the euro is the elimination of currency risk. He emphasized that despite the fixed exchange rate of the lev to the euro, for global investors the lev continues to be perceived as "another currency", which creates a risk in the market valuation of every company. According to him, some of the large international investors do not even have the right to work with instruments in such currencies, and for others, the conversion represents a serious problem.

In addition to currency risk, Moravenov also highlighted the role of the state's credit rating. He announced that the Bulgarian state rating has already been upgraded, and expectations are that it will be raised by at least "at least one more point" from next year. This positive assessment will lead to cheaper issues of debt securities not only for the state but also for Bulgarian businesses.

Reduced costs and European integration

The CEO of the BSE also noted the reduction of transaction costs, which will be beneficial for both market participants and investors.

In addition, Moravenov emphasized the opportunities for integration and partnership that membership in the Eurozone will provide to the Bulgarian Stock Exchange. He revealed that "serious conversations" are already being held with other smaller stock exchanges from the Eurozone, and this topic will be the focus of their work over the next few years.

In conclusion, Manyu Moravenov summarized that Bulgaria's entry into the Eurozone means "more trust, more investments, and cheaper capital". He recalled that the stock exchange itself has long been prepared for this process, giving investors the opportunity to work with levs and euros. According to him, trading and settlement have been carried out in levs, euros, and dollars for years.