Baltic stocks climb again

  • 2000-02-24
Investors found their sweetheart stocks in the Baltics last week with almost all liquid shares climbing.

The Baltic Index of the 13 blue-chips quoted on the Baltic List soared 5.25 percent to a record 112.85 points.

Twelve stocks gained with only one sliding last week.

Last week was a banner week for bank stocks, especially those belonging to Skandinaviska Enskilda Banken (SEB). Shares in Estonian Uhispank skyrocketed 15.26 percent to 2.365 euros. Latvian Unibanka's share price surged 10.11 percent to 3.001 euros and Vilniaus Bankas' shares climbed 7.15 percent to 7.293 euros.

Estonian shares on the Baltic List posted the biggest gain for the week, jumping 8.22 percent to 116.41 points.

But Estonian blue-chips underperformed the broader market, with the Tallinn Stock Exchange's TALSE index soaring 10.51 percent last week to 164.32 points.

In addition to Uhispank, shares in Eesti Telekom also rose sharply, up 15.43 percent to 8.724 euros.

Strong gains by bank shares also helped the Latvian and Lithuanian indices to climb.

The Latvian stocks on the Baltic List climbed 3.20 percent to 111.61 points entirely due to the gain by Unibanka.

Unibanka also helped pull up the cap-weighted DJRSE index by 3.17 percent to 103.90 points, but the broader RICI price index fell 1.72 percent to 174.24 points as shares in Riga Transport Fleet sank 14 percent.

In Lithuania most of the indices also ended on the up side. The Lithuanian stocks on the Baltic List gained 3.58 percent to 109.64 points.

Lithuanian stocks remain in last place on the Baltic List.

The Lithanian National Stock Exchange's indices also gained. The blue-chip LITIN climbed 3.7 percent to 558 points, while the LITIN-10 price index was up 0.67 percent to 1196.43 points.

Turnover of Baltic List shares almost doubled last week to 20.25 million euros.

Over 94 percent of turnover was in Estonian stocks with a turnover of 19 million euros. Latvian stocks generated a turnover of 745,000 euros (3.7 percent) and Lithuanian stocks 460,000 euros (2.3 percent) in four days of trading.

In Estonia the stocks quoted on the Baltic List accounted for 83 percent of the Tallinn Stock Exchange's total turnover. In Latvia and Lithuania Baltic List stocks accounted for 40-50 percent of total turnover.

The market capitalization of Baltic List stocks jumped 9.5 percent last week to 2.66 billion euros. Estonian shares account for 2.12 billion euros, Latvian stocks 367 million euros and Lithuanian stocks 181 million euros.

Baltic shares were in the forefront as bears seemed to be out on the world's stock exchanges. New York's DJIA slipped two percent to 10,219 points. The Russian RTSi fell four percent to 180 points. After several weeks of spectacular gains Warsaw's WIG-20 was up a modest 1.85 percent last week to 2,238 points.

Estonia: Record highs

Supported by buying from abroad, Estonian stocks hit new highs in brisk trading on the Tallinn stock exchange during the past week.

The TALSE index gained 10.51 percent during the week to close at 164.32 on Friday.

The five Estonian stocks quoted on the Baltic List climbed 8.22 percent to 116.41 points.

"After a long time trading produced the biggest turnovers of the past one and a half years," Hansapank trader Romet Tepper said. "Standing behind this was strong interest from abroad, which also took shares to record levels."

With a turnover of 77.8 million kroons (EUR 5 mln) during the week, Telekom hit its all-time high in the past week at 140 kroons (8.852 euros). Friday to Friday, Telekom put on 15.43 percent to close at 136.50.

Hansapank, with a turnover of 165.7 million kroons during the week, went up 4.36 percent to 137.50 kroons (8.788 euros). In the middle of the week it broke the nine euro level before sliding back down somewhat.

The other issues traded followed the leaders' suit.

Investors saw Uhispank and Optiva Bank as good alternatives to Telekom and Hansa in the main list. As a result, Uhispank and Optiva produced turnovers of respectively 18.1 million and 9.3 million kroons during the week. Winning relatively the most from the rally was Uhispank, which shot up 15.26 percent to 37 kroons (2.365 euros).

Impressive gains were made by shares quoted the secondary list, with Kalev as the leader with a rise of 36.36 percent to 15 kroons.

"Optiva Bank has sold its holding in Kalev," the trader said. "This may mean that somebody has trust in Kalev's future."

The riskier the investment, the more profitable it may be, Tepper explained.

He said that while movement in the short term could be in various directions, the long-term vision was still optimistic.

"Interest from outside continues and also the locals are becoming more active," Tepper said. "Buying of shares via Internet bank has received a vigorous start," he said.

Latvia: Unibanka back in charge

Unibanka was once again the darling of investors last week, with its 10 percent gain to 1.76 lats (3.00 euros) helping to pull up the Riga Stock Exchange's indices.

The cap-weighted DJRSE index gained only 3.17 percent last week to 103.90 points despite Unibanka's spurt.

But even Unibanka's gain couldn't keep the RICI price index in positive territory. It slid 1.72 percent to 174.34 points as shares in Riga Transporte Fleet sank 14 percent to 0.18 lats.

The four Latvian stocks quoted on the Baltic List gained 3.2 percent last week to 111.61 points.

The spurt in Unibanka's share price was no surprise against the background of the rise of banking shares in the Baltics last week. The release of Unibanka's audited 1999 results that almost exactly matched the preliminary results only helped to restore investor confidence in the bank.

The proposal by Unibanka's board to pay a dividend of 0.075 lats (0.13 euros) per share seems to have satisfied investors and at the end of the week appeared forecasts its share price may rise to 2.00 lats (3.40 euros) per share.

Most analysts are still cautious about the bank maintaining its current level, however. The board's recommendation on the dividend payment is not binding, and Unibanka's majority shareholder -- SEB -- may have a different opinion that will become known by the shareholders meeting on March 7.

Trading in the other shares quoted on the Baltic List was not active. Ventspils Nafta's share price has stabilized at the 0.50 lat level (0.85 euros). At this level it already has a very low P/E level of three. But the steady stream of bad news from Russia on Latvian-Russian political relations and competing oil export projects don't give Ventspils Nafta's share price much freedom to move upwards.

Turnover on the bourse last week totaled four million lats including three million lats in T-bills and mortgage bonds.

Official and second list shares generated a turnover of 780,000 lats (EUR 1.33 mln). The Baltic List shares accounted for 745,000 euros of turnover, or 56 percent of the total for shares.

Lithuanian Market Wrap: Vilniaus Bankas dominates

Last week trading in Vilniaus Bankas' shares dominated, accounting for two-thirds of the exchange's central market turnover.

The blue-chip LITIN index rosl 3.69 percent to 557.98 points, which the LITIN-10 gaining 0.63 to 1196.43 points and the LITIN-A 0.41 percent to 1125.00 points.

The four Lithuanian stocks quoted on the Baltic List gained 3.58 percent to 109.64, recoving ground lost the week before. All four stocks posted gains in euros, with Vilniaus Bankas up 7.15 percent to 7.293 euros.

"The situation on the market hasn't changed yet -- all the attention is concentrated on shares in Vilniaus Bankas, which is providing most of the bourse's turnover," Suprema broker Arvydas Jacikevicius said.

Shares in Vilniaus Bankas generated a turnover of 1.58 million litas.

Lithuanian brokers point their attention to the similar buying pressure on all three of SEB's banks in the Baltics and speculate there might be one major foreign investor behind the move.

If the high turnover continues for the next few days Vilniaus Bankas may pull the entire market up with it, brokers forecast.

Shares in Rokiskio Suris gained 2.27 percent last week to 5.70 euros (22.5 litas) on a turnover of 50,750 euros.

Hansabankas broker Tomas Andrejauskas said shares in Rokiskio Suris were the first to react to the jump by Vilniaus Bankas, with trading picking up late in the week.

On the current list trading in Mazeikiai Nafta's shares stood out with 104,600 litas in turnover on the central market at the previous price of 0.81 81 litas.

Jacikevicius said as the shares in the refinery are a candidate for the official list they interest many investors.

Shares in Lithuanian Energy held at 5.00 litas on a central market turnover of 99,500 litas, and shares in LISCO shipping company held steady at 2.10 litas on a turnover of 78,500 litas.

In direct deals trading in the Lithuanian-Hungarian joint venture contstruction firm Lithun was active with 742,600 litas in turnover.

Share turnover on Lithuanian bourse last week was once again anemic at 3.37 million litas (EUR 0.85 million).