Georgia Capital published Weekly Market Watch. According to the report:
Exports increased by 10.1% y/y in April 2022
In April-22, exports increased by 10.1% y/y to USD 415.7mn from last year’s high base, after a 26.3% y/y (USD 411.4mn) growth in previous month. Imports growth accelerated by 25.3% y/y to USD 947.2mn, after growing 16.0% y/y in previous month. As a result, the trade deficit widened by 40.4% y/y to USD 531.5mn, after a 8.6% y/y growth a month before. Overall, in 4M22, trade deficit was up 34.4% y/y to USD 2.1bn, as exports increased by 32.8% y/y to USD 1.6bn, while imports were up by 33.7% y/y to USD 3.7bn.
NBG kept its key rate unchanged at 11.0%
The NBG kept its key rate unchanged at 11.0% on 11 May 2022, after raising it by 50pbs in March 2022. Elevated inflation and inflationary risks remain a recent global challenge and global surge in prices was transmitted to Georgian market as well, regulator commented. Despite the slowdown compared to the beginning of the year, inflation in Georgia remains high at 12.8% in April. The central bank noted that the GEL’s recent appreciation has supported the reduction in imported inflation. Furthermore, with the recent rise in nominal wages, total productivity has also improved, meaning there is no significant pressures on prices from the labor market. According to NBG forecast, inflation will remain high through 2022, however it will have a declining path as last year’s one-off effects fade and monetary policy remains tight. Notably, the NBG revised real GDP growth forecast upwards to 4.5% for 2022, from the previous forecast of 3-4%, and also noted significant recovery in external demand in 1Q22 despite increased risks. NBG also reiterated that monetary policy will keep a tightening bias until the risks of rising inflation expectations are sufficiently mitigated. The next committee meeting is scheduled for 22 June 2022.
Equities
Bank of Georgia Group (BGEO LN) shares closed at GBP 12.90/share (+10.26% w/w and +3.53% m/m). More than 431k shares traded in the range of GBP 11.34 - 12.96/share. Average daily traded volume was 59k in the last 4 weeks. The volume of BGEO shares traded was at 0.88% of its capitalization.
TBC Bank Group (TBCG LN) closed the week at GBP 13.36/share (+11.52% w/w and +10.05% m/m). More than 269k shares changed hands in the range of GBP 11.52 - 13.54/share. Average daily traded volume was 49k in the last 4 weeks. The volume of TBCG shares traded was at 0.49% of its capitalization.
Georgia Capital (CGEO LN) shares closed at GBP 5.69/share (-4.53% w/w and -7.48% m/m). More than 270k shares traded in the range of GBP 5.51- 5.97/share. Average daily traded volume was 46k in the last 4 weeks. The volume of CGEO shares traded was at 0.58% of its capitalization.
