Baltic markets rebound

Last week all three Baltic markets rebounded, with the largest gains - 5 percent to 6 percent - being registered by the Riga Stock Exchange's indexes due to a jump in Ventspils Nafta's share price.

The Litin-10 posted an even sharper gain of 8 percent due to Ukio Bankas' share price rocketing up by 32 percent and Mazeikiai Nafta's following closely at 25 percent. However, the blue chip Litin index rose just 0.64 percent.

At the end of the week, there were signs indicating that the rise in Ukio Bankas' share price had peaked so the Litin-10 index could drop the following week. With LUKoil's position towards Lithuania hardening, Mazeikiai Nafta's share price could take a bruising as well.

The direction the Lithuanian market takes will likely depend on the second quarter GDP figures, due to come out October 12. If the results are in line with the pessimistic forecasts that have been made then the Lithuanian market could enter a long decline.

The macroeconomic situation in Estonia is looking the best in the Baltics at the moment. The TALSE index rose just 0.26 percent last week to 99.44 points, but a continued rise this week looks likely. Much will depend on the expectations of investors and speculators in Norma's stock about the conclusion of a strategic investment by Sweden's Avtoliv.