The list's capitalization fell 4.01 percent to 2.66 billion euros ($2.31 billion), brought down by sharp falls in Estonia's Hansapank and Eesti Telekom, with weakness reflected in most Latvian and Lithuanian shares as well.
Turnover reached 9.1 million euros, below the previous week's level of 10.1 million euros. Estonian and Latvian Baltic List stocks led trade on their home bourses, accounting for over 80 percent of total share turnover, while in Lithuania this indicator was just 40 percent.
Estonia: Telekom leads indexes down
Eesti Telekom's release of disappointing 2001 earnings earned it a trip to the doghouse. The index TALSE dropped 4.46 percent to finish at 156.47 in relatively brisk trading. Calculated in euros, the price index of the five Estonian Baltic List stocks fell only 0.76 percent to 132.45, as Telekom's fall was partly counterbalanced by Norma's gains.
Total turnover in 765 deals came to 138.7 million kroons ($7.7 million), of which 67 percent was from trading in Hansapank shares.
"The most important event was the Eesti Telekom earnings announcement; everything else on the stock exchange revolved around it," Hansabank Markets trader Lauri Lind said, adding that "the results of Telekom were poorer than expected with the market reacting correspondingly; the decline in the price also pulled Hansa into negative territory." Activity toward the end of the week indicates, however, that Hansapank and Telekom can be expected to move higher again in the coming weeks, he concluded.
With 92.7 million kroons in turnover, Hansapank was the most traded issue, declining 1.3 percent to 189.75.
Eesti Telekom announced on Feb. 7 that its net profit for 2001 totaled 787 million kroons, while analysts had expected the group to post a net profit between 915 million and 940 million kroons. Although analysts differed somewhat in their reactions to the 2001 results, all expect profitability of the fixed line subsidiary, Eesti Telefon, which was behind the group's 2001 performance, to improve.
Investors nonetheless punished Telekom shares, driving them down sharply, by 11.29 percent, closing the week at 68.75 kroons on a turnover of 33 million kroons.
Already rumors are surfacing around the sharp price drop, hinting at the possibility of an insider trading scandal. The Estonian financial inspectorate has started its investigation into the allegations, as the Eesti Telekom shares dropped suddenly the day before the weaker than anticipated results were officially announced.
Eesti Telekom's management on February 7 denied any accusations that the drop could have been the result of foul play, suggesting instead that the stock suffered from the impact of a decline in New York markets and a weaker Sonera in Helsinki.
Norma is trading at its highest levels in almost four years, ending 3.12 percent higher at 62.70 kroons with 6.2 million kroons in turnover. Norma's rise is expected to continue at least until news of the expected dividend payment is announced, Lind said.
Latvia: Stocks extend losing streak
Latvia's blue chips continued into negative territory for the second week running. The capitalization index DJRSE fell 2.39 percent to 182.95 while the price index RICI followed suit, off 1.54 percent to 166.49.
Share turnover remained almost unchanged from the previous week at just 110,000 lats ($171,000).
The gas company Latvijas Gaze and oil terminal Ventspils Nafta moved down as well. The gas company lost 2.4 percent, to 6.15 lats, amid 87,000 lats in turnover. Analysts at the savings bank Latvijas Krajbanka believe the price may continue to decline, at least until the results of the public share offering, for privatization vouchers, are announced.
But analysts at Suprema meanwhile believe Latvijas Gaze share prices should not increase even after the public offering results are made public, as large shareholders won't enter a bidding war for the small shareholders' remaining shares.
Ventspils Nafta slid 3.2 percent to 0.6 lats on a close to zero turnover of just 342 lats. The shareholders, most likely, are unwilling to sell shares at such a low price, hoping for good news from Russia. They interpret information from the International Energy Agency that Russia has ignored its agreement with the OPEC cartel and may in fact have even increased oil exports in January as reason to hold onto shares.
Russia this year is planning to increase exports by some 16 million tons, which would significantly exceed current capacities at its Primorsk port, Ventspils' chief rival.
Evidence of recovery for the global economy already at the start of this year is also positive news for Ventspils Nafta. But a sharp increase in Ventspils Nafta's share price should not be expected against this backdrop, according to analysts, and the maximum shareholders may hope for in the near term is 0.65 lats to 0.67 lats per share.
Lithuania: Telecom down a bit in sluggish trade
Investors demonstrated a lack of any real conviction though short-lived rallies in several shares provided for some excitement in this otherwise generic trading week. The bourse's benchmark price index Litin-10 edged up 0.17 percent to 1,185.90, while the blue chip index Litin eased 0.56 percent to 315.70, and the broad index Litin-G edged down 0.81 percent to 869.05. Calculated in euros, the price index of the six Lithuanian Baltic List stocks gained 0.7 percent, to 140.94. Listed on the official list, Telekomas drifted 0.84 percent lower to 1.18 litas amid a turnover of 757,000 litas ($189,259). Another 96,000 litas' worth of shares in the monopoly fixed-line telephone operator changed owners via block deals.
Martynas Kulvinskas, head of the Securities Trading Unit at Zemes Ukio Bankas, said Telekomas' share price was pulled down by strong selling pressure. "Similar to the previous week, it seems that a major foreign investor is selling off shares in Telekomas, withdrawing from the Lithuanian market," Kulvinskas said.
Refrigerator maker Snaige soared 6.67 percent to 40 litas in trade worth 391,100 litas following the announcement that the company lifted its January sales by 38 percent, to 15.1 million litas, in a year-on-year comparison.
Dairy Pieno Zvaigzdes firmed at 1.55 litas with 174,000 litas' worth of shares traded; brewer Kalnapilis closed flat at 6.14 litas amid a turnover of 146,300 litas. Another 186,000 litas' worth of shares in Pieno Zvaigzdes changed hands via block trades.
Shareholders sent blue chip electronics firm Vilniaus Vingis higher by 1.08 percent to 4.70 litas amid a turnover of 123,200 litas, reacting to news that the company is set to reduce its authorized share capital by 9.12 million litas. The face value of each share will be cut by 25 percent, from 4 litas to 3 litas, and the ensuing freed-up equity will be returned to shareholders in proportion to their existing holdings.
Cheese maker Rokiskio Suris drifted lower by 2.03 percent to 29.50 litas in trade worth 35,200 litas; TV-tube producer Ekranas slid 1.75 percent to 5.60 litas amid a turnover of 16,900 litas. Shares in knitwear manufacturer Utenos Trikotazas were not traded last week.
On the current list, marine transport company Klaipedos Transporto Laivynas closed 2.5 percent higher at 0.39 litas amid trading volume of 161,900 litas.
The pharmaceutical company Sanitas advanced 3.45 percent to 3 litas with 96,000 litas' worth of shares traded. The gas company Lietuvos Dujos slumped 4.93 percent to 1.93 litas amid a turnover of 73,600 litas. Ferry operator Lisco Baltic Service charged ahead 2.5 percent to 0.41 litas with 68,500 litas' worth of shares traded.
Some 20,400 state owned shares in Siauliu Bank were sold off for 1.02 million litas in public trading. Following the sale, the state still holds 8,642 shares, or 1.27 percent, of the bank's authorized capital.
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