Trading activity slows in Baltics

  • 2000-03-02
The Baltic Index of the region's blue-chip stocks slipped 2.1 percent last week to 110.47 as trading activity faded. Losers outnumbered gainers 10 to three on the Baltic List.

If Eesti Telekom had not soared 9.1 percent, to 9.51 euros ($9.63), the fall in the Baltic Index would have been even steeper. Thanks to Eesti Telekom's rally, Estonian stocks quoted on the Baltic List slipped only 0.32 percent to 116.03 points. The Tallinn Stock Exchange's TALSE index climbed 4.56 percent last week to 171.81.

The Latvian stocks on the Baltic List suffered the steepest fall, plunging 5.13 percent to 105.89 points, the worst weekly performance on the Baltic List to date. The Riga Stock Exchange's indexes were mixed. The cap-weighted DJRSE index fell 2.66 percent to 101.14, while the RICI index nudged up 0.22 percent to 174.72.

In Lithuania most of the indexes were also lower. The four Lithuanian stocks quoted on the List fell 1.41 percent to 108.10 points. The Lithuanian National Stock Exchange's official list LITIN index gained 0.46 percent to 560.57, while the LITIN-10 price index fell 0.83 percent to 1186.47.

Turnover collapsed by over two-thirds last week, from 20.25 million euros to 6.3 million euros. Estonian shares once again dominated trading with 5.5 million euros, or 87 percent of turnover. Latvian stocks accounted for eight percent of total turnover at 535,000 euros and Lithuanian stocks five percent at 300,000 euros. Baltic List shares acconted for 89 percent of total turnover on the Tallinn Stock Exchange, 87 percent on the Riga Stock Exchange, but only 35 percent on the Vilnius bourse.

Market capitalization of the Baltic List stocks totaled 2.75 billion euros on February 25, a three percent gain over the week. Estonian stocks account for 2.22 billion euros in capitalization (+5%), Latvian stocks 351 million euros (-4%) and Lithuanian stocks 178 million euros (-2%).

Baltic stocks were not alone in moving downwards last week. New York's DJIA fell 3.5 percent last week, dropping below the 10,000 point level to end the week at 9,862 points. To the east, Russia's RTSi fell 3.12 percent to 174.21 points. But stocks in Poland picked up the pace of their rally, jumping 8.23 percent to 2,423 points.

Estonia: Slack trading

Trading on the Tallinn Stock Exchange was relatively slack with turnover dropping by three times, from 320 million kroons ($20.19 mil.) the previous week, to 96.4 million kroons last week. The TALSE stock index moved up 4.56 percent to 171.81 points during the week. Most of rise can be ascribed to shares in Telekom, which gained 9.16 percent over the week and closed at a new high of 149 kroons on Friday.

At the same time three of the five Estonian shares on the Baltic List fell last week, for a combined drop of 0.32 percent to 116.03 points. Shares in Hansapank climbed 1.27 percent to 139.25 kroons. Most analysts think the shares have reached their optimal price. The big loser on the main list was Uhispank, which fell 5.41 percent and ended at 35 kroons. Norma stock closed 2.66 percent down from the week before and finished at 47.50 kroons.

Shares in Telekom posted the largest turnover last week with 37.1 million kroons in turnover. Trading in Hansapank stock plunged from 165 million kroons the previous week to 26.2 million kroons. Nevertheless Suprema's Sten Sumberg believes that interest in the Estonian market has grown. While attention has focused on just a couple of shares, it has helped other shares climb as well.

Sumberg believes the bourse will take its direction from Eesti Telekom's results, due to be announced Monday. Investors are expecting Telekom to post a consolidated profit exceeding 750 million kroons, with Suprema forecasting it at 778 million kroons, said Sumberg.

Turnover on the Tallinn Stock Exchange totalled just 96 million kroons for the week. It was a drop of more than two-thirds from 320 million kroons the previous week, although trading was closed for one day during the week.

Baltic List stocks accounted for 89 percent of total turnover.

Latvia: Share prices dip

Share prices dipped along with the temperature last week in Latvia. The cap-weighted DJRSE fell 2.66 percent last week to 101.14 points, while the RICI price index managed a 0.22 percent gain to 174.22 points.

The four Latvian stocks quoted on the Baltic List plunged 5.13 percent last week to 105.89 points. The drop was intensified by changes in the exchange rate. The Latvian stocks are now in last place on the Baltic List, showing only a 5.89 percent gain compared to a gain of 16.03 percent for Estonian and 8.1 for Lithuanian stocks. The 4.77 percent downward move in Unibanka's share price was not unexpected, with most Baltic experts believing its rise so far this year has gotten ahead of itself.

Most analysts don't expect Unibanka's share price to slide much further, if at all, and in the medium-term it should increase. If a 0.075 lat ($0.126) per share dividend is confirmed on March 7 the bank's share price could rise even further. The 7.33 percent plunge in Ventspils Nafta's share price, to 0.79 euros, was also no surprise as there are more than enough reasons in Latvia and Russia to push down the oil terminal's share price.

Among non-Baltic List shares, the 14 percent dive in Liepajas Metalurgs' price is notable. The plunge was brought on by possible European Union sanctions against the factory. Total turnover on the Latvian securities market was 1.12 million lats, with 0.76 million lats in turnover in T-bills and mortgage bonds. Turnover was down by nearly four times from the previous week.

Lithuania: Vilniaus Bankas remains in focus

Vilniaus Bankas' shares remained the focus of trading last week, although its turnover and share price began to slide a little at the end of the week. The blue-chip LITIN index posted a 0.46 percent gain to 560.57 points, while the LITIN-A fell 2.18 percent to 1100.51 points, with the LITIN-10 slipping 0.83 percent to 1186.47 points. The four Lithuanian shares quoted on the Baltic List fell 1.44 percent to 108.10 points. With the exception of Utenos Trikotazas, the price, in euros, of the other three stocks fell last week.

Lower-than-expected profits took the froth off the share price of Kalnapilis brewery's shares. It's shares dropped 3.79 percent to 1.024 euros. Shares in Vilniaus Bankas generated a turnover of 886,000 litas ($221,500). It climbed 0.69 percent in litas to 29 litas, but fell 0.65 percent in euros to 7.246 euros. Brokers said in the second half of the week major buyers of the shares disappeared, whom analysts believe are the same investors buying shares in the other Skandinaviska Enskilda Banken banks (Uhispank and Unibanka) as well. But Estonian and Lithuanian brokers believe Vilniaus Bankas' share price is still considerably undervalued compared to Uhispank and Unibanka's, so it has room to climb.

Trading in the shares of the dairies quoted on the official list picked up last week. Trading in Rokiskio Suris' shares totaled 242,000 litas, but its share price slipped 2.00 percent to 5.58 euros.

Shares in Birzai Dairy fell sharply, down 5.21 percent to 0.91 litas on a turnover of 241,800 litas. Baltic Securities broker Dmitry Dutov said that after news broke Friday about a possible strategic investor with interest in the dairy, the shares should become attractive to speculators and should climb this week.

On the current list, shares in Lithuanian Energy held firm at 5.00 litas on a turnover of 275,900 litas. Shares in LISCO shipping company were up 0.48 percent to 2.11 litas and shares in Mazeikiai Nafta climbed 2.47 percent to 0.83 litas.

Turnover on the Vilnius bourse totaled 3.48 million litas, virtually unchanged from the previous week. Baltic List shares accounted for just 34 percent of total turnover.