Utenos Trikotazas weighs on Baltic index

  • 2002-01-24
  • Boris Epsteins
Burdened by the full weight of a huge 50 percent loss in Lithuania's knitwear company Utenos Trikotazas, the Baltic List struggled in its efforts to keep its head above water. Despite gainers outnumbering losers 11 to two, the Baltic index, comprising Estonian, Latvian and Lithuanian blue chip shares, fell 2.84 percent to 150.57 in the outgoing week. Utenos Trikotazas' nosedive had little effect on the Baltic List capitalization as an additional share issue came to market. On the contrary, capitalization rose by 1.1 percent, to 2.6 billion euros ($2.35 billion), by the end of the week.

The weekly Baltic List turnover was up, at 8.29 million euros, from 7.53 million euros a week earlier, due to large deals with Estonian stocks which contributed nearly 97 percent of the total. Hansapank led trade with 5.62 million euros in turnover. Retreating prices on American and European stock markets can be expected to affect the Baltics next week.

Estonia: Hansapank, Norma interest investors

Optimism lifted prices on the Tallinn Stock Exchange, sending Hansapank and Norma higher while Viisnurk slumped in the wake of poor preliminary fourth quarter results. The index TALSE was up 1 percent to finish at 153.00, its highest level since May 18, 2000. As calculated in euros, the price index of the five Estonian Baltic List shares was higher by 1.88 percent to 126.90. Total turnover came to 130.3 million kroons ($7.3 million), the briskest week of trade since May 2001.

"Buying interest by foreign investors continued despite very high volatility elsewhere in the world, where the U.S. and European markets are up by 2 percent one day and down by the same margin the next," said Aivo Kangus, capital markets strategist at Uhispank. "Local investors were on the selling side," he added.

The week's best performance came from Hansapank, which climbed 2.21 percent to finish at 173.75, moving to its highest level in more than four years. The five day turnover, totalling some 88 million kroons, made up 67 percent of the market's total. Norma posted strong gains of 3.57 percent, settling in at 58 kroons, as weekly volume reached 9.5 million kroons - an unusually high figure in recent months.

Eesti Telekom fell 0.67 percent to 74 kroons, caught in the current vulnerability of world IT sector stock performance. Turnover totalled 27.7 million kroons.

Viisnurk released poorer than anticipated results, Kangus observed. "The reason for this is the slower than expected launch of its edge glued panels manufacturing plant on the one hand, and on an all around contraction in its margins on the other," Kangus said. The stock price rewarded shareholders correspondingly, finishing the week 11.36 percent lower at 39 kroons on a turnover of 1.11 million kroons. A further decline in the price would not be justified, analysts feel.

"There are no grounds for a further decline," Kangus stated cautiously. He suggested Viisnurk could be a good buy at this point, although two consecutive quarters had been weak, leaving room for soft share prices ahead unless management gets operations back on track soon.

Latvia: Indexes high on light volume

All Latvian stock exchange indexes moved up in the outgoing week despite the firm belief by a majority of analysts that even the most liquid Latvian shares are well overpriced. The Dow Jones Riga Stock Exchange capitalization index inched up 0.52 percent to 199.41 and the price index RICI jumped 3.15 percent to 173.22.

The euro price index of the two Latvian stocks quoted both on the Riga Stock Exchange official list and the Baltic List climbed 1.45 percent to 265.53. The weekly turnover of listed shares was 189,552 lats ($296,638).

Knitwear producer Ogre, quoted on the free list, led trading, generating a turnover of 73,500 lats in an internal deal between existing large shareholders. The distillery Latvijas Balzams, quoted on the secondary list, was next in terms of trade volume with 45,400 lats.

Latvian stocks quoted on Riga Stock Exchange's official list and on the Baltic List counted for 40,000 lats, or 21 percent, of the total stock market turnover for the week.

Gas company Latvijas Gaze was flat at 6.70 lats on 29,500 lats in trade, though shares were at 6.90 lats by mid-week. Nevertheless, Latvijas Unibanka and Suprema analysts believe that high prices for Latvijas Gaze shares are inflated to a certain extent, and the actual price of the stock should be much lower than that now trading on the market.

In addition, Latvijas Krajbanka analysts suggest that the final decision about the upcoming sale of a large block (32 percent) of shares in the shipping company Latvijas Kugnieciba, against payment in privatization vouchers, could become an attractive investment alternative for holders of these vouchers, who previously expected to be able to use their holdings only at a public offering of shares in Latvijas Gaze, also to be sold for privatization vouchers.

Oil terminal Ventspils Nafta jumped 3.1 percent to finish at 0.67 lats on a turnover of 10,500 lats as a mid-week surge to 0.70 lats per share evaporated. The stock price was possibly bolstered by the intentions of Russian oil companies, namely YUKOS and Sibneft, to considerably increase export of oil and oil products this year, despite the agreement between Russia and the OPEC cartel to limit production. An additional reason for Ventspils Nafta stock's strength could be found in reports concerning Russian railway freight rates, allegedly set to be levelled out soon with respect to cargos taken to Russian and Baltic ports. The current status now has it that freight costs promote shipping through Russian ports.

Regardless of a recently awarded and internationally recognized certificate of quality, shares in Latvijas Balzams lost 2.7 percent to 0.36 lats.

Lithuania: Secondary listed shipping stocks gain ground

The bears once again led trade on the National Stock Exchange of Lithuania last week. Blue chip Lietuvos Telekomas led in terms of turnover, though its weekly trading volume did not reach even 500,000 litas; secondary listed shipping companies bucked the trend by gaining ground amid brisk trade.

The bourse's benchmark price index Litin-10 rose 1.14 percent to 1,177.67 and the broad index Litin-G was up 0.59 percent to 871.68. The blue chip index Litin edged down 0.56 percent to 314.88. As calculated in euros, the price index of the six Lithuanian Baltic List stocks fell heavily, by 8.81 percent, to 131.97 due to the sharp fall in Utenos Trikotazas' share price. The week's total equity turnover reached 15.41 million litas ($3.85 million).

Brokers saw interest pick up in the second half of the week, attributing this to money from the sale of brewery Kalnapilis' shares tender offer coming back into the market.

Listed on the official list, Telekomas closed 0.82 percent lower at 1.21 litas on a turnover of 492,200 litas. Another 81,900 litas' worth of shares in Telekomas changed hands via block trades. Cheese maker Rokiskio Suris edged up 0.16 percent to 31.05 litas in trade worth 89,500 litas. In block trading, 52,400 litas' worth of shares changed owners.

Dairy Pieno Zvaigzdes firmed at 1.55 litas on a turnover of 55,700 litas; refrigerator maker Snaige held steady at 37.00 litas amid a turnover of 33,700 litas; TV-tube manufacturer Ekranas slid 0.89 percent to 5.55 litas with 24,500 litas' worth of shares traded; knitwear maker Utenos Trikotazas plummeted 46.15 percent to 2.10 litas on a turnover of 3,500 litas.

Price fluctuation margin limits were not applied to trading in Utenos Trikotazas due to the increase of its authorized capital. The knitwear maker has raised its authorized capital from 23.26 million litas to 49.53 million litas by issuing 26.27 million ordinary registered shares, which were distributed among the company's shareholders in proportion to their existing holdings.

On the current list, gas company Lietuvos Dujos rose 0.50 percent to 2.01 litas with 327,900 litas' worth of shares traded. Brokers cited the company's upcoming privatization as the main factor behind increased trade in its shares.

Ferry operator Lisco Baltic Service rallied 13.16 percent to 0.43 litas on a turnover of 316,700 litas; marine transport company Klaipedos Transporto Laivynas closed 8.11 percent higher at 0.40 litas on a turnover of 166,500 litas; shipping company Lietuvos Juru Laivininkyste charged ahead 27.27 percent to 0.14 litas amid a turnover of 137,600 litas. Another 15,700 litas' worth of shares in Lisco Baltic Service changed hands via block deals.

Aurelijus Rimkus, broker with the financial brokerage company Finasta, said investor interest in Lisco Baltic Service shares was fuelled by expectations of good performance results, which are to be released in March, while Klaipedos Transporto Laivynas and Lietuvos Juru Laivininkyste enjoyed brisk trade ahead of their privatization.

Electronic component maker Vilniaus Vingis jumped 0.48 percent to 4.22 litas on a turnover of 50,600 litas. The board of Vilniaus Vingis reported last week that it has decided to file a request with the stock exchange to include the company's shares on the bourse's official list.

On January 14, the Danish Brewery Group completed a tender offer for the buyout of shares in Kalnapilis, boosting its stake in Kalnapilis from 86.94 percent to 96.84 percent. The Brewery Group was offered 2,517,417 shares with a nominal value of one litas, reprocessing 75.83 percent of the total amount of shares that may be sold on the bourse (3,319,930). The buyer paid 6.14 litas per share with a face value of one litas, with the total value of the stake reaching 15.45 million litas.

Following the completion of the tender offer, just a little more than 3 percent of Kalnapilis' shares are in free circulation, which means that Kalnapilis falls short of the requirements for listing on the official list and therefore faces delisting.

The bourse's benchmark price index Litin-10 rose 1.14 percent to 1,177.67 and the broad index Litin-G was up 0.59 percent to 871.68. The blue chip index Litin edged down 0.56 percent to 314.88. As calculated in euros, the price index of the six Lithuanian Baltic List stocks fell heavily, by 8.81 percent, to 131.97 due to the sharp fall in Utenos Trikotazas' share price. The week's total equity turnover reached 15.41 million litas ($3.85 million).

Brokers saw interest pick up in the second half of the week, attributing this to money from the sale of brewery Kalnapilis' shares tender offer coming back into the market.

Listed on the official list, Telekomas closed 0.82 percent lower at 1.21 litas on a turnover of 492,200 litas. Another 81,900 litas' worth of shares in Telekomas changed hands via block trades. Cheese maker Rokiskio Suris edged up 0.16 percent to 31.05 litas in trade worth 89,500 litas. In block trading, 52,400 litas' worth of shares changed owners.

Dairy Pieno Zvaigzdes firmed at 1.55 litas on a turnover of 55,700 litas; refrigerator maker Snaige held steady at 37 litas amid a turnover of 33,700 litas; TV-tube manufacturer Ekranas slid 0.89 percent to 5.55 litas with 24,500 litas' worth of shares traded; knitwear maker Utenos Trikotazas plummeted 46.15 percent to 2.10 litas on a turnover of 3,500 litas.

Price fluctuation margin limits were not applied to trading in Utenos Trikotazas due to the increase of its authorized capital. The knitwear maker has raised its authorized capital from 23.26 million litas to 49.53 million litas by issuing 26.27 million ordinary registered shares, which were distributed among the company's shareholders in proportion to their existing holdings.

On the current list, the gas company Lietuvos Dujos rose 0.50 percent to 2.01 litas with 327,900 litas' worth of shares traded. Brokers cited the company's upcoming privatization as the main factor behind increased trade in its shares.

Ferry operator Lisco Baltic Service rallied 13.16 percent to 0.43 litas on a turnover of 316,700 litas; marine transport company Klaipedos Transporto Laivynas closed 8.11 percent higher at 0.40 litas on a turnover of 166,500 litas; the shipping company Lietuvos Juru Laivininkyste charged ahead 27.27 percent to 0.14 litas amid a turnover of 137,600 litas. Another 15,700 litas' worth of shares in Lisco Baltic Service changed hands via block deals.

Aurelijus Rimkus, broker with the financial brokerage company Finasta, said investor interest in Lisco Baltic Service shares was fuelled by expectations of good performance results, which are to be released in March, while Klaipedos Transporto Laivynas and Lietuvos Juru Laivininkyste enjoyed brisk trade ahead of their privatization.

Electronic component maker Vilniaus Vingis jumped 0.48 percent to 4.22 litas on a turnover of 50,600 litas. The board of Vilniaus Vingis reported last week that it has decided to file a request with the stock exchange to include the company's shares on the bourse's official list.

On January 14, the Danish Brewery Group completed a tender offer for the buyout of shares in Kalnapilis, boosting its stake in Kalnapilis from 86.94 percent to 96.84 percent. The Brewery Group was offered 2,517,417 shares with a nominal value of 1 litas, reprocessing 75.83 percent of the total amount of shares that may be sold on the bourse (3,319,930). The buyer paid 6.14 litas per share with a face value of 1 litas, with the total value of the stake reaching 15.45 million litas.

Following the completion of the tender offer, just a little more than 3 percent of Kalnapilis' shares are in free circulation, which means that Kalnapilis falls short of the requirements for listing on the official list and therefore faces delisting.