The interest of foreign investors in Bulgarian companies traded on the Sofia stock market would increase in 2014 as local companies are expected to improve their performance, the broker said in its latest report, co-published with Danish investment bank Saxo Bank.
The SOFIX index is expected to continue to grow this year, reaching an increase of up to 50%.
The strong interest will result from optimistic expectations, rather than financial results reported by companies, Elana Trading noted, adding that many companies have improved their performances, but are far from unfolding their potential.
The beginning of the year has been strong for the stock exchange and new companies are expected to list on the Sofia bourse. At the same time, the number of investors which transferred their funds from bank deposits to the stock exchange last year grew as they sought higher return on investments (ROI).
Investor interest was prompted by earnings per share and therefore corporate news remained in the background. Shares cannot be identified as undervalued, but are certainly not overpriced, the report read.