Telecoms push Baltic index higher

Led by sharp gains in Estonian and Lithuanian telecommunications shares, the Baltic List index rose by 1.2 percent last week, closing at 155.3 on Feb. 15. Most other shares were moderately stronger; the capitalization index finished higher as well. Winners outnumbered losers seven to three with three stocks unchanged.

Baltic List capitalization was 5.3 percent higher, to 2.8 billion euros ($2.45 billion), benefitting from the surge in Estonia's Hansapank and Eesti Telekom shares, and from gains by Latvia's oil terminal Ventspils Nafta and Lithuania's Lietuvos Telekomas.

The Baltic List trading volume was relatively unchanged from the previous week, at 9.1 million euros. Estonian and Latvian Baltic List shares trading on their home bourses held dominating positions, covering over 85 percent of the total turnover, while the figure was only 30 percent for Lithuania.

Estonia: Hansapank, Telekom take center stage

Relatively brisk trade marked the week on the Tallinn Stock Exchange, as investors focused their efforts on Eesti Telekom and Hansapank. The stock index TALSE climbed 5.5 percent, closing at 164.55. Calculated in euros, the price index of the five Estonian Baltic List shares was up 2.68 percent to 136, a new record. Turnover from 719 deals totaled 130.6 million kroons ($7.3 million).

Trading was volatile during the week. Investors in Eesti Telekom are recovering from the one-two punch of the previous week's disappointing earnings announcement and concerns over a possible insider trading scandal. Meanwhile, the market is awaiting release of Hansapank's results, Trigon Markets trader Kaur Elviste said. "On the whole, it seems to have been a relatively positive week," he added.

Hansapank ended 3.03 percent higher at 195.50 kroons with 85.3 million kroons in turnover. Going by Hansabank's results for 2001, the investment bank Suprema regards 220 kroons to 230 kroons a share as fair value, and considering its current market price, is issuing the stock a 'buy' recommendation. Other specialists were more cautious in their forecasts, predicting either stability or just a small rise in the share price.

Eesti Telekom posted a solid gain of 10.1 percent, finishing at 75.75 kroons on a turnover of 32.2 million kroons. Analysts predict that there could be some profit taking early next week.

The car-seatbelt maker Norma firmed 1.4 percent, ending at 64.10 kroons with slightly more than 6 million kroons' worth of shares changing hands.

Brewery Saku Olletehas, on the supplementary list, ended at 62 kroons, off 0.4 percent amid trade worth 1.37 million kroons, while EVP privatization vouchers shed 0.1 percent, finishing at 0.69 kroons.

Latvia: Most shares up, Latvian Gas Co. heads lower

Last week most of Latvia's stocks gained, while shares in the market dominating gas company Latvijas Gaze headed in the opposite direction. The Dow Jones Riga Stock Exchange capitalization index edged down slightly by 0.03 percent to 182.89, while the RICI price index gained 4.78 percent to 174.44. The Latvian euro price index for the Baltic List shares finished at 243.50.

The Riga bourse posted a share turnover three times higher than in the previous week, at 311,000 lats ($485,000).

As was expected, the oil terminal Ventspils Nafta gained 5 percent to 0.63 lats, which can be explained by an increase in Russian crude oil and oil product exports. It seems clear that Ventspils Nafta shareholders are not ready to sell their shares at a price below 0.60 lats, where even at this price share turnover was quite low at 11,184 lats.

Shares in the gas company Latvijas Gaze continued their downward fall, losing another 1.6 percent to 6.05 lats on a turnover of 262,000 lats.

Feb. 18 is the date when results should be announced on the recent sale of a 3 percent state owned stake in Latvijas Gaze, in exchange for privatization certificates. The price for these shares was expected to be around 2 lats per share, as calculated against the current market value of the certificates. New shares may only show up on the market by April, and it is likely that Latvijas Gaze shares will continue their steady drop into the coming weeks.

Distillery Latvijas Balzams reached a turnover of 38,260 lats with the share price gaining 2.7 percent, to 0.37 lats. Analysts at investment bank Suprema believe that one of the reasons for the shares to be up is the active attempts of the company's largest shareholder, Russia's Soyuzplodimport, in trying to recover its prestigious trademarks, assets which the Russian state recently appropriated.

Next week should see the biggest public share offering in Latvia's history, when 32 percent of the Latvian Shipping Company will be up for grabs in exchange for privatization certificates. If this offering proceeds well, the shares could even get a stock market listing by this May or June, when another 51 percent of the company is set to be sold, this time for cash, on the Riga Stock Exchange.

Lithuania: Telecom shares stage comeback in dull week

Lietuvos Telekomas was the best performer on the Lithuanian stock exchange last week, posting strong gains and hitting its highest level since August. Otherwise trade remained dull, even with the return to the market, after a half-year suspension, of oil firm Mazeikiu Nafta, which could only muster a lukewarm response from investors.The bourse's benchmark price index Litin-10 fell 1.6 percent to 1,166.24, the blue chip index Litin shot up 9.3 percent to 345.16, while the broad index Litin-G climbed 4.6 percent to 909.11.

Calculated in euros, the price index of the six Lithuanian Baltic List stocks inched 0.74 percent higher to 141.98. Share trading generated 7.2 million litas ($1.8 million).

On the official list, Telekomas surged ahead 16.9 percent to 1.38 litas on a turnover of 1.2 million litas. The last time these shares closed at this level was in late August last year. Suprema broker Arvydas Jacikevicius said Telekomas' gains had long been expected by many in the market. The selling pressure, which had kept the company's share price down for some time, eased and the first clear signs of an upward move emerged when Telekomas' share price rose to 1.20 litas on Feb. 13. On Feb. 15, the price of Global Depository Receipts for Lietuvos Telekomas on the London Stock Exchange rose to $3.525, equivalent to almost 1.40 litas per ordinary share (one GDR represents 10 ordinary shares in Telekomas).

Electronic component maker Vilniaus Vingis was stable at 4.70 litas with 194,700 litas' worth of shares traded. Dairy Pieno Zvaigzdes closed flat at 1.55 litas in trade worth 120,500 litas. Another 155,000 litas' worth of shares in Pieno Zvaigzdes changed owners via block trades.

Refrigerator producer Snaige closed 0.03 percent lower at 39.99 litas with 53,900 litas' worth of shares traded.

On the secondary current list, gas utility Lietuvos Dujos advanced 8.8 percent to 2.10 litas on a turnover of 734,700 litas. Brewer Ragutis plunged 7.8 percent to 7 litas on a turnover of 172,600 litas. In block trading, 672,100 litas' worth of shares in Ragutis changed hands.

On Feb. 12, shares in Mazeikiu Nafta were traded on the stock exchange for the first time since last August, when trading was suspended to allow the oil company to begin the process of an authorized capital restructuring. It failed in efforts to make a successful comeback, however.

The shares opened at 0.95 litas, up 58.3 percent from the level previous to the suspension, but later gave up some of the early gains, closing at 0.86 litas. Trade was extremely thin, however, with only 62 litas' worth of shares changing hands.

On Feb. 13, 10,026,289 shares in linen textile producer Linas, representing 41.71 percent of the authorized capital, changed hands via two block trades. The buyer paid 0.18 litas a share, with the total value of the deal reaching 1.8 million litas. On central market trading, Linas stood at 0.36 litas.