Economic news reelased by SITA on Tuesday, March 13
Headline Inflation Slows Down to 2.7 Percent y/y in February
In February growth of consumer prices in Slovakia slowed down 0.3 percentage points from January to 2.7 percent y/y. In February, consumer prices went up 0.2 percent compared with the previous month. In January they went up 1 percent compared with December,Statistics Office of the Slovak Republic reported on Tuesday.
Bratislava Airport Served 222,185 Passengers as of February
M.R. Stefanik Airport in Bratislava served 222,185 passengers in the first two months of this year. Out of them 6,991 were transit clients. Company's spokeswoman Ivana Paulinyova informed that the airport served nearly 9,500 clients more as of the end of February than in the same period of last year. In February, the airport served 111,825 passengers.
Turnover of Stock Slovakia Down 4.7 Pct. to SKK 584 Mln. Last Year
Stock Slovakia, s.r.o., a subsidiary of Czech distillery Stock Plzen and distributor of its products in Slovakia, reported turnover of SKK 584 million last year. This is a drop of 4.7 percent compared with 2005. Stock Slovakia director Barbara Vetorova told SITA that the company sold 2.67 million liters of spirits on the local market last year, which is 8 percent less than in told in 2005. "Financial results of Stock Slovakia were significantly influenced by more than 13-percent increase in excise tax on spirits, which reflected in retail prices of spirits in stores," stated Ms. Vetorova.
IMF Evaluates Slovakia's Chances to Join Eurozone Positively
The Slovak economy is successfully moving ahead and preconditions for adoption of the euro are very good. This is a part of conclusions of the report to be released by the International Monetary Fund (IMF) in upcoming days. Head of the IMF mission for Slovakia Biswajit Bemerjee presented them at a joint conference with Slovak Finance Minister Jan Pociatek and the Governor of the National Bank of Slovakia Ivan Sramko on Tuesday. He said that the probability of meeting the Maastricht criteria is very high, however, he also pointed out some risks.
INVESTING: Pension Funds Managed SKK 31.84 Bln. Last Week
The net value of policyholders' assets in licensed pension fund management companies in Slovakia (DSS) reached SKK 31.84 billion as of last Friday. The value of assets in pension funds went up over SKK 434 million from a week ago. As of March 9, SKK 20.944 billion was in growth funds, SKK 9.6 billion was in balanced funds, and SKK 1.297 billion was in conservative funds.
NBS Bank Board Approves New Capital Adequacy Regulation for Banks
The Bank Board of the National Bank of Slovakia (NBS) approved a measure on Tuesday regarding capital adequacy for banks and stockbrokers. The measure implements EU directives into Slovak legislation related to the taking up and pursuit of the business of credit institutions, and on the capital adequacy of investment companies and credit institutions.
GTS Nextra Reports 2006 Sales of SKK 768 Mln.
Slovakia's largest alternative telecommunications operator GTS Nextra, a.s., reported total sales of SKK 768.217 million last year, which is an 18 percent increase compared with 2005. These sales were reduced by SKK 62.475 million achieved in mutual transactions between the companies Nextra, a.s., GTS Slovakia, s.r.o., Aliatel Slovakia, s.r.o., Quadia DCT, a.s., and Nextra, s. r.o., which have operated under the common brand GTS Nextra since July 1, 2006. The company reported EBITDA of SKK 161.080 million, which is over 43 percent more than a year ago.
Alcatel with 2006 Turnover at SKK 1.007 Bln. in Slovakia
Producer of telecommunications equipment Alcatel reported a turnover of SKK 1.007 billion last year in Slovakia. Alcatel's media advisor Jan Holcik said that Alcatel Slovakia, a.s. received orders for SKK 1.07 billion last year. The multinational companies Alcatel and Lucent Technologies have operated under the joint trade brand Alcatel-Lucent as of December 1.
Stein Beverages Reports a Drop in Beer Sales and Revenues for 2006
Beer sales of the joint-stock company Stein Beverages in Bratislava decreased 2 percent y/y to about 144,000 hectoliters last year, the chairman of the company's board of directors, Marian Beno, reported at a news conference held by the brewery on Tuesday. The drop in the volume of sold beer has been reflected in revenues, which also fell 2 percent last year. In 2005, Stein Beverages reported revenues of SKK 264.6 million. The brewery plans to increase its output by 1 - 2 percent this year.
Another Company is Interested in an Electronic Toll Collection System
Fixed-line telecommunications operator Slovak Telecom and Satellic Traffic Management, which both belong to the group Deutsche Telekom, would like to participate in a future tender for the system of electronic toll collection based on satellite technology in Slovakia. The system is to be launched as of the beginning of 2009 on highways and dual-carriageways for vehicles weighing more than 3.5 tons. Representatives of both companies informed journalists about their plans on Tuesday. They stressed that satellite technology they presented is now operating successfully in Germany for the third year. The system not only collects toll for using selected road infrastructure, but it also actively directs transport, thus contributing to higher road traffic safety and to improving the environment.
Mayor of Presov Speaks of a Thousand New Jobs
One thousand new jobs could be created in Presov in the near future, the city's mayor, Pavel Hagyari, told SITA. However, he declined to reveal the name of the investor. "We agreed with the company that we would not provide any detailed information and I want to be fair and keep that promise. Once the investment is a sure thing, we will inform the public at a press conference," said Mr. Hagyari. At the moment, the still unnamed firm is to invest about SKK 2 billion in Presov.
Slovenska Grafia with Preliminary 2006 Taxed Profit of SKK 56 Mln.
Printing company Slovenska Grafia, a.s. Bratislava, a member of the Grafobal Group, reported sales of SKK 1.928 billion last year, up 16 percent y/y. Company director Martin Ilavsky said that sales of its products and services made up SKK 770 million of that sum, which is a 10 percent increase y/y. According to preliminary results the company showed a taxed profit of SKK 56 million last year.
Slovakia and Samsung Sign an Investment Memorandum
The Slovak Republic signed an investment memorandum with Samsung Electronic LCD in Bratislava on Tuesday. Prime Minister Robert Fico stated, at a news conference after the signing, that the South Korean firm would invest EUR 320 million (about SKK 11 billion) in the new plant for the production of LCD flat panels in Voderady, near Trnava. The investment will create 1,200 direct jobs.
MONEY MARKET: Portion of Bank Bids Rejected in Repo on Tuesday
In its sterilization repo tender on Tuesday, the National Bank of Slovakia (NBS) once again rejected a portion of bank bids. Slovenska Sporitelna dealer Pavel Janosik said that bids in the two-week tender reached SKK 250.186 billion. The central bank accepted bids for SKK 170 billion at the minimum yield of 4.2 percent p.a. and the maximum yield of 4.6 percent p.a. The average was 4.42 percent p.a. Mr. Janosik explained that the central bank in this way let the banks know that it is not willing to sterilize the money that arrived on Monday from Thursday's direct interventions on the FOREX market. On Thursday the central bank entered the market after the Slovak currency firmed to 33.800 SKK/EUR.
STOCK MARKET: SAX Only Slowly Recovers Monday's Losses
Slovakia's official SAX share index is only slowly recovering from its major losses of over ten points registered at the beginning of the week. The SAX index moderately strengthened 0.15 percent or 0.62 points to 417.91 points on Tuesday, owing to shares of the crude-oil refiner Slovnaft. A great deal of attention was attracted by direct transfers of government bonds, which constituted almost the whole turnover that increased from SKK 1.863 billion on Monday to SKK 21.291 billion on Tuesday. As little as SKK 1.983 million fell to share trading.
FOREX MARKET: Crown Strengthens Despite Surplus Liquidity
Slovak currency initially posted losses against the euro on Tuesday morning. Foreign banks closed their positions and weakened the local currency from the opening 34.06/34.10 SKK/EUR to 34.14 SKK/EUR. According to Tatra Banka's Boris Somorovsky, the market was waiting for the results of the National Bank of Slovakia's (NBS) two-week repo tender. The central bank eventually rejected a part of bank bids. Nevertheless, the Slovak crown strengthened and its exchange rate stood at 34.00/34.04 SKK/EUR before the close of trading, Mr. Somorovsky said. The signing of the investment memorandum between the Slovak Republic and the South Korean company Samsung did not influence trading on the FOREX market because market players had already been counting on it.
INVESTING: Investors Mostly Interested in Conservative Funds
Open-end mutual funds in Slovakia that members of the Slovak Association of Asset Management Companies (SASS) manage posted a moderate influx of finances last week. On the whole, net sales of mutual funds totaled SKK 98 million. Conservative funds still attract the biggest interest of investors. Money market funds reported net sales of SKK 129 million, as much as SKK 132.8 million flew in master funds and investors deposited almost SKK 151 million in the group of guaranteed, secured and real estate funds. In contrast, bond funds had the biggest outflow of money, representing SKK 140.6 million.
Health Insurers do not Plan to Use their Profit to Pay Dividends
Health insurance company ZP Apollo does not plan to use its last year's profit to pay out dividends to its shareholders. The insurer's spokeswoman Radoslava Miklasova reacted to Health Minister Ivan Valentovic who stated on Sunday that health insurers have over SKK 1 billion in their accounts and are just waiting when the money gets outside the system to be used for dividends. Health insurer ZP Dovera plans to use its profit to improve the quality of services and create new products for clients, said its spokesman Radoslav Bielka.