The Tallinn Stock Exchange, which in the first half of the outgoing week kept relatively busy on the strength of news of an upgrading of the banks' ratings and large deals on Wednesday, subsided back into a torpor Friday.
The TALSE index closed at 113.54 points, down by 0.93 percent compared with last Thursday. "This was a relatively good week, even though it didn't end very well," Hansapank broker Mattias Mustonen commented.
The international rating agency Moody's Tuesday announced it had upgraded Hansapank's long-term rating to Baa2. Some investors reacted to the news very rapidly, Mustonen said. "I hope the rating will bring foreign money to the market," he added.
Moody's also changed the outlook for Uhispank's long-term rating from stable to positive.
The exchange system's turnover Wednesday surpassed 20 million kroons ($1,35 million), largely on account of major deals with shares in the aforementioned two banks.
Norma maintained a steady upward movement throughout the week, ending 6.58 percent higher than last week. The shares were in the focus of interest on an otherwise sluggish market on Thursday.
Mustonen said Norma's rise is backed by anticipation of news. The market expects Sweden's Autoliv to announce the start of production in Estonia. "Norma is on an upward trend and will probably continue strong," the broker noted.
The EVP privatization vouchers rose to the fore toward the end of week. Friday's turnover from deals with the EVPs was 2.1 million kroons. "The Compensation Fund's next issue is drawing close and the EVPs are sought after," Mustonen commented.
Hansapank was the outgoing week's most-traded share with 23.8 million kroons in turnover. Norma's turnover totaled 10.7 million kroons.
Among supplementary list shares Saku Olletehas brewery topped the turnover list with 3.5 million kroons.
Latvia: Bad loans keep Unibanka down
Despite good audited half-year results and Skandinaviska Enskilda Banken strengthening its position in the bank the share price of the bellweather of the Latvian securities market has not been able to break above 1 lat ($0.58).
The most likely reason why investors are not piling into the bank's shares is the banks lending portfolio, which includes large loans to several companies on the brink of collapse, including sugar manufacturer Jekabpils Cukurfabrika and the former Dauteks textile factory.
Unibanka is still doing relatively better than the Riga Stock Exchange's other blue chips, which have continued to slide. The RICI index slipped 0.35 percent last week to 166.08 points, while the DJRSE index dropped 1.44 percent to 80.88 points. Both are near record lows.
Unibanka's shareholders and potential investors are holding off, and movement of the bank's share price is likely to be tied to the fate of Dauteks and the sugar factory in Jekabpils.
Dauteks, now owned by the Singapore-based Tolaram Group, still has some chance for recovery, but it appears the sugar factory will face a bitter end. If Jekabpils Cukurfabrika goes bankrupt, Unibanka will have to fight hundreds of other creditors for the refinery's meager assets.
The refinery's share price plunged a hefty 25 percent following news of Unibanka's decision not to extend payment terms on its loans Thursday evening.
Sellers of Ventspils Nafta's shares stepped to the fore last week, no doubt prompted by news that Russia had doubled the export tariff on oil from $5 to $10 a ton. This may reduce exports in the fourth quarter and Russian exporters are likely to step up pressure on Ventspils Nafta to reduce reloading charges.
Ventspils Nafta's share price dropped 4 percent last week to 0.48 lats. The considerable turnover of 170,000 lats indicates there is still at least one investor who wants to increase his stake in the terminal.
Shares in Unibanka and Ventspils Nafta are likely to remain the focus of trading next week. This past week they accounted for almost 90 percent of turnover.
Lithuania: Trading picks up
Last week trading on the Lithuanian National Stock Exchange livened up with share prices of many stocks climbing. The LITIB-10 price index jumped 4 percent to 1152.80 points, and the LITIN climbed 2.11 percent to 561.28 points.
"The market was stable and even rose," said VB Vilfima broker Vaidotas Tauras.
Suprema broker Arvyadas Jacikevicius said the rise was due to both Lithuanian and foreign investors, and next week looks just as promising.
On the central market trading in Bankas Hermis and Snaige shares was most active. Snaige's shares jumped 10.57 percent to 35.05 litas ($7.51) on a turnover of 274,400 litas.
Hermis' share price also moved higher, up 4.63 percent over the week to 110.29 litas on a turnover of 361,900 litas.
On the current list investors focused on shares in Zemes Ukio Bankas, driving its share price up 12.62 percent to 7.14 litas on a turnover of 1.8 million litas.
The largest direct deal last week was in Ukio Bankas shares for 4.08 million litas.
Interest in Mazeikiai Nafta's shares continues to increase slowly. Last week almost 370,000 litas in the oil refinery's shares traded hands, with the share price jumping 16.67 percent to 0.7 litas.
Turnover totaled 54.65 million litas last week, but only 4.14 million litas' worth was conducted on the central market. Turnover of shares totaled almost 12 million litas.
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