Hansapank was the most traded issue on the Tallinn stock exchange in the previous week, but Telecom shares rose the most against a generally positive background. The TALSE index rose by 7.37 percent over the week and closed at 120.19 points on Friday.
Hansapank broker Lauri Lind admitted that interest focused above all on Hansapank stock, which accounted for more than 58 percent of the market's total turnover. The share price, which generated 98.3 million kroons ($6,301,282) of turnover, rose by 3.02 percent to 93.75 kroons over the week. The highest price during the week was 97.50 kroons.
Shares in Telecom moved up with relatively smaller daily turnovers, bolstered by the London market. Over the week, the share rose by 12.13 percent. The broker said that stronger purchase interest came from the West. "We could see [investors] attempting to do something relatively fast before the pre-holiday lull," Lind said.
The market received no fundamental news this week. The estimated economic growth index for the country remained under the expected level, at 0.2 percent, in the 3rd quarter, but didn't significantly affect the market. The broker said it was positive that the market retained its liquidity. The total turnover of the stock market in the outgoing week was 169 million kroons. Lind added that the next couple of weeks are apparently going to be much quieter. He said that also fear of the Y2K problem would have a considerable effect on trading activity.
Latvian Unibanka props up Riga bourse
The considerable increase in the share price of Latvian Unibanka during the past week prevented the DJRSE capitalization index from a sharp fall and kept the indexes stable during the week at 81.94 points.
The RICI index meanwhile slid 2.91 percent to 163.59 points, thus closing the cycle of growth that continued on the bourse since mid-November. Of the 11 companies included in the RICI index, six companies lost value during the week, with shares in Rezekne PKK falling the most, declining by 6.67 percent to 0.14 lats ($0.23). For shipbuilding concern Rigas Kugu Buvetava, the share price fell 5.56 percent to 0.51 lats, and for Valmieras Stikla Skiedra 4.17 percent, to 0.46 lats.
Demand for Ventspils Nafta shares remained strong despite contradictory news from Russia. On the one hand, it was announced last week that there will be a significant increase in oil transit volume through Ventspils. Russian oil exporters are explaining the increase as mainly due to temporary problems with the Novorossiysk oil terminal. Whatever the reason, the transit flow increase will allow Ventspils Nafta to compensate for the losses from the lowering of oil reloading tariffs.
On the other hand, the Russian oil transportation company Transneft President Semyon Vainshtock Friday told the Vedomostji newspaper that the Baltic Pipelines System soon will take away a large part of transit volume from Ventspils.
It seems, though, that Ventspils Nafta's shareholders should not worry much about this statement. The present rapid deterioration of relations between the West and Russia reduces Russia's chances to implement the Baltic Pipelines Systems project successfully because it would be unrealistic to attract long-term Western investment.
Among several other liquid shares, Latvijas Balzams last week saw its share price growing by 2.44 percent to 0.42 lats, and Latvian Unibanka by 6.19 percent to 1.03 lats. As was expected, Unibanka's shares last week rather easily broke through the one lat resistance level, but that may not be followed by any further rapid increase of the share price. The bank's 11 month profit figure, of 9.844 million lats, puts into doubt that the bank will meet its annual profit target of 11 million lats.
In addition, potential investors cannot ignore problems that the bank has in recovering substantial credits from companies like Tolaram Fibers. It should be noted that any legal steps taken by the bank to recover the credit cause negative public reaction in Latvia, especially in the eastern region Latgale. The chief reason behind the possible increase of Unibanka's share price before the end of the year might be window dressing by some shareholders, who want to improve their balance sheet statements.
The turnover on the Riga Stock Exchange last week was 230,000 lats, of this 110,000 lats were transactions in Unibanka. With regard to the approaching Christmas holidays, it is unlikely that trading volumes will increase on the stock exchange anytime soon but, with activity remaining low, speculators will continue, therefore having the potential to significantly affect stock price movements.
Lithuanian stock market inactive
Trade remained calm on the Lithuanian National Stock Exchange during the last week, with interest seen in some stocks on the central market but with turnovers nevertheless remaining insignificant. Stock exchange index Litin jumped 1.05 percent to 534.29 points, Litin-A rose 0.05 percent to 1055.04 points, and the Litin-10 dropped 1.75 percent to 1087.72 points.
"Actually, nothing can be said about trading on the stock exchange. And it is unlikely that something will change before the end of the year," said Aurelijus Rimkus from Finasta financial brokerage firm. From official list companies shares in Vilniaus Bankas and Hermis Bank were most actively traded, although shares in Vilniaus Bankas were not traded on Tuesday due to a shareholders meeting, while Hermis shares were not traded on Wednesday for the same reason. Shares in Vilniaus Bankas grew 2 percent to 25.49 litas ($6.37) with central market turnover reaching 217,100 litas. Shares worth 284,500 litas sold in block deals.
"Seems that price of these stocks currently is stabilizing. The increase can be expected after the proposal to buy the remaining shares in Hermis is put into action, as those who will be willing to invest would rather prefer only Vilniaus Bankas' shares," said Baltijos Vertybiniai Popieriai expert Dmitry Dutov.
For Hermis the share price grew 0.28 percent to 127.42 litas, the turnover was 176,000 litas. The brokers said these shares still are a good alternative to buying government bonds, therefore interest in them remains strong. Block deals consisted of 82,800 litas worth of shares in Hermis.
Shares in Birzu Akcine Pieno Bendrove dairy company saw a turnover of 19,200 litas on the central market, with the company's share price sinking 10.34 percent to 1.04 litas. The price was pulled down by news about its difficult financial situation. For Rokiskio Suris cheese company turnover reached 18,300 litas, with the share price jumping 0.27 percent to 22.56 litas. Block deals accounted for 146,600 litas worth of shares in the company.
From the second list, shares in Lietuvos Energija saw the most active trading, with a turnover of 216,400 litas and the share price remaining firm at 5 litas. Ukio Bankas share price fell 13.7 percent to 6.3 litas, with central market turnover at 65,000 litas. The brokers said it seems that somebody is artificially pulling down the bank's share price. The stock exchange's turnover was 22.326 million litas, of this total trade in government bonds accounted for nearly 90 percent.
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