Latvian and Lithuanian stocks continue run

Strong gains by Latvian and Lithuanian blue-chips outweighed a slip in the Estonian stocks quoted on the Baltic List to drive up the Baltic Index 2.00 percent last week, to 116.78. Gainers outnumbered losers seven to five, with shares in Hansapank unchanged. Ventspils Nafta was the uncontested leader for the week, posting a twenty percent gain, helping the four Latvian stocks on the List jump five percent, to 120.17, and nearly catch the Lithuanian stocks.

The Riga Stock Exchange's indices also posted gains last week. The DJRSE cap-weighted index climbed 4.28 percent to 110.39, and the RICI price index was up 4.22 percent to 185.62. The Lithuanian stocks also posted a solid gain of 3.92 percent last week to 120.72, holding the top position. The Vilnius bourse's LITIN-10 price index climbed 2.08 percent to 1241.26, and the official list's LITIN index was also up 2.08 percent to 609.78.

The Estonian stocks quoted on the Baltic List continued their slide during the week, dropping 2.01 percent to 110.83. As Hansapank and Eesti Telekom did not see much weakness, the Tallinn Stock Exchange's TALSE index was down just 0.3 percent, to 167.70.

Turnover of Baltic List shares was practically unchanged from the previous week at 9.1 million euros ($8.77 million). Estonian shares generated a turnover of 7.2 million euros, accounting for 79 percent of the total weekly turnover. Latvian stocks accounted for 17 percent of weekly turnover and Lithuanian stocks only four percent.

In Estonia and Latvia stocks quoted on the Baltic List continued to account for 80-90 percent of the turnover on their home bourses, while the figure in Lithuania was only 22 percent. The market capitalization of the stocks quoted on the Baltic List totaled 2.77 million euros after Friday's close. The market capitalization of the Estonian stocks slipped 0.5 percent over the week to 2.16 billion euros, while the Latvian stocks gained 13 percent to 403 million euros and the Lithuanian stocks four percent to 203 million euros.

The Russian market was the star performer last week, with the RTSi soaring 18.37 percent to 224.82 on record turnovers reaching $60 million per day. The DJIA continued its slide, losing 4.23 pecent to 9,929.

Estonia: Trading subdued

The outgoing week was relatively quiet on the Tallinn bourse; share prices changed little while turnover was bolstered by a few major block deals. The TALSE index closed at 167.70 on March 10, down by 0.29 percent from March 3. As a group, the five Estonian stocks quoted on the Baltic List fared worse, dropping 2.01 percent to 110.83 points. All fell except for Hansapank, which ended the week unchanged.

"Surprisingly, the market did not dive amid the relative calm," Trigon Securities broker Kaur Elviste said. Elviste said the leading shares managed to hold steady. Hansapank did not change from the previous week, closing at 135 kroons ($8.31). Telecom showed some volatility and ended the week at 145.50 kroons, down by 0.34 percent from the previous Friday.

Local selling pressure brought down Uhispank, Norma and Optiva Bank, the broker said. Optiva Bank lost more than the others, dropping seven percent to below the psychological support level of 10 kroons, ending the week at 9.30 kroons. Norma edged down 0.89 percent to 44.40 kroons and Uhispank slid 2.59 percent to 33.80 kroons. As Elviste sees it, Uhispank and Norma have dropped sufficiently such that next week might bring a recovery, provided that leading shares do not fall.

On the supplementary list Kalev showed the biggest change, jumping 20.69 percent from the previous week to close at 17.50 kroons. "No information to justify the rise has been released," Elviste noted.

The exchange system's turnover in the outgoing week was 133.5 million kroons. Hansapank accounted for 88 million kroons, Norma - 9.3 million, and Telecom - 6.7 million kroons of the total.

Latvia: Ventspils Nafta soars

Shares in Ventspils Nafta were the star performer on the Riga Stock Exchange last week, soaring 20.15 percent to 1.10 euros. The DJRSE cap-weighted index climbed 4.28 percent to 110.39, and the RICI price index was up 4.22 percent to 185.62. The index of the four Latvian stocks quoted on the Baltic List jumped 5.00 percent, to 120.17.

Specialists differ on the reason behind the sharp rise in Ventspils Nafta's share price, which was second in turnover for the week at 615,000 euros. Latvian Unibanka analyst Janis Purgailis and Rietuma Banka believe that strategic foreign investors have decided the oil terminal's shares were undervalued and were behind the buying boom. Suprema analyst Reinis Ceplis believes it is investors interested in the privatization of the state-held shares in the oil terminal who are behind the buying.

But Latvian Savings Bank analyst Ivars Bergs believes the jump in Ventspils Nafta's share price was so sharp that a downward correction is almost certain this coming week.

Shares in Unibanka stabilized at the 1.78 lats ($2.98) level last week on a turnover of 889,595 euros. Strategic investors cannot but be happy that the bank's perfomance indicators have stabilized, and that in both January and February it earned approximately 800,000 lats, as expected.

Of non-Baltic List stocks, shares in Staburadze gained 10 percent to 1.10 lats on a turnover of 65,000 lats. Continued buying interest and low liquidity could drive the share price of the confectionery even higher, according to analysts.

Share turnover on the Riga bourse totaled about one million lats, a three-fold rise from the previous week.

Lithuania: Prices up in thin trading

Trading activity waned somewhat on the Lithuanian National Stock Exchange last week, but it did not stop the climb in share prices. The official list LITIN index climbed 2.08 percent to 609.78, the current list LITIN-A index was up 1.60 percent to 1114.86, and the LITIN-10 2.08 percent to 1241.26. The four Lithuanian stocks quoted on the Baltic List climbed 3.92 percent to 120,72, retaining their top postion among the three Baltic states.

"Passion on the bourse is waning - turnover is falling," Suprema broker Arvydas Jacikevicius told BNS. As in the previous week, the most active stock was Vilniaus Bankas, generating a turnover of 1.27 million litas ($317,500). It climbed 3.53 percent in litas to 32.28 litas, while it was up 4.72 percent in euros, to 8.438 euros.

Brokers say most investors are optimistic about Vilniaus Bankas prospects, so its share price should continue to grow. Turnover of the other three stocks quoted on the Baltic List was insignificant, but their share prices in euros increased.

Of non-Baltic List stocks, interest in Birzai Dairy's shares continued as talks with potential strategic investors continued. After a sharp rise the previous week, its shares slipped 0.91 percent to 1.09 litas on a combined turnover of 323,700 litas.

On the current list trading was most active in Mazeikiai Nafta's shares, generating a turnover of 292,100 litas. Shares in the oil concern climbed 5.88 percent to 0.90 litas. "I think Mazeikiai Nafta's shares have reached a new level of 0.89-0.90 litas, and will stay there for the near future," said Jacikevicius. Even the announcement of an audited loss of 130.86 million litas for last year failed to dent the company's share price.

Share turnover on the bourse totaled 6.25 million litas last week. Baltic List shares generated a turnover of just 362,000 euros, or 22 percent of the total.