Stock markets: weekly report (June 28 - July 2)

  • 1999-07-08
Estonia: Hansapank bounces back

Attention focused on Hansapank stock on the Tallinn stock exchange in the outgoing week, as the stock price turned the corner on June 30 after a taxing ten-day slide.

The TALSE index rose by 2.01 percent to 112.59 points from the previous week's close.

Sten Sumberg of Suprema said that the downward pressure on Hansapank stock eased when last week's heavy seller withdrew from the market, allowing bargain hunters to move in and stabilize the shares.

On June 30 the share price rose by 2.47 percent, on July 1 by 6.21 percent and then again on July 2 by 1.95 percent. The week's highest turnover day saw the price of the share jump by 9.94 percent, finishing at 78.50 kroons ($5.25) for the week.

Sten Sumberg predicted that there would not be an explosive rally in Hansapank stock, even though long-term money would start moving in.

In Sumberg's opinion, Hansapank stock could on the contrary see some downward adjustment, or could simply stay flat for some time.

Uhispank stock was relatively stable, hovering around 26 kroons throughout the week. Fluctuations within the range of 0.20 kroons brought the share to its Friday closing price of 26.20 kroons.

The total turnover in the stock market for the week was 55.5 million kroons, 36 million kroons of this in deals with Hansapank stock. Of the main list shares, Uhispank stock followed Hansapank with 4 million kroons, Norma stock with 3.4 million kroons and Telecom stock with 2.5 million kroons of turnover.

Latvia: RICI stumbles to record low

Last week the Riga stock exchange won the award for another poor performance, with the RICI price index hitting a record low 161.03 points after dropping 2.31 percent for the week.

The DJRSE cap-weighted index fell 2.81 percent to 81.19, also testing its record low of 80.01 reached on 29 March.

A jump in trading activity and slumping share prices came as a surprise to nobody due to the payment of dividends and the end of the first half of the year.

The payment of dividends explains most of the 8.93 percent fall in Ventspils Nafta's shares, to 0.51 lats ($0.86). Factoring in the dividend payment, its share price was down by just 2 percent.

Before the dividend payment, trading in the company's shares was heavy as major shareholders tried to improve the balance sheets before the end of the year. This was especially important for banks, which will have international auditors examine their half-year results; these auditors, though, should have no trouble seeing through this superficial window dressing.

The desire to improve balance sheets before the end of the half year probably also explains the surge in Staburadze confectioner's stock price, as the rush to buy sugar pushed the shares up 8.26 percent to 1.18 lats on a turnover of just 14,000 lats.

No positive changes are expected on the market as the anticipated arrival of foreign investors bottom fishing after the half year are likely to be scared away by yet another possible government crisis looming on the horizon.

Lithuania: Summer doldrums continue

The summer doldrums continued on the Lithuanian securities market last week, with bursts of trading on the central market linked to short-term maneuvering with Vilniaus Bankas and Lietuvos Draudimas shares.

The official list Litin index slid last week 1.82 percent to 504.77 points, the Litin-10 slumped 2.34 to 968.10 points, and the Litin-A secondary list index was off 2.05 percent to 1014.25 points.

"Nothing interesting is happening on the market, summer passivity is continuing," said Baltijos Vertybiniai Popieriai broker Dmitry Dutov.

"The publication of a 5.7 percent drop in GDP, undoubtedly, had a negative impact on the market and we can expect some kind of change only in the fall," said Suprema broker Tomas Andrejauskas.

Vilniaus Bankas returned to the leadership position on the central market with 1.02 million litas ($255,000) in turnover. Most of the activity occurred on Tuesday, when 769,600 litas worth of shares traded hands.

"On June 29 demand for Vilniaus Bankas shares suddenly appeared, and because there was sufficient supply, the turnover was quite large," noted Suprema broker Arvydas Jacikevicius.

The bank's share price slid by 2.39 percent, however, to end the week at 26.10 litas.

Hermis Bank led Vilniaus Bankas in turnover due to direct deal trading. A total of 4.46 million litas in Hermis shares were sold, with the share price sliding 1.19 percent to 85 litas.