Baltic share prices move chaotically

The Baltic stock markets last week were characterized by sudden turns in price movement upwards as well as downwards.

The Baltic index - comprising 13 Latvian, Lithuanian and Estonian blue chip companies - was down 0.8 percent to 155.89 points over the week.

Five Baltic List stocks closed down, including the gas company Latvijas Gaze, the seat-belt manufacturer Norma and the dairy Pieno Zvaigzdes, which lost over 4 percent each.

At the same time, six Baltic List stocks gained more than 3 percent, and two Lithuanian stocks stayed flat.

The Baltic List turnover last week grew by 1.5 times to 5.75 million euros ($5.09 million) as compared with 3.8 million euros a week before. As usual, Estonian stocks contributed over 80 percent of the weekly total.

Estonia also was the only Baltic state where Baltic List stocks led the local stock market last week, bringing in over 90 percent of the total turnover. In Lithuania and Latvia this figure was 30 percent to 55 percent.

Trading was relatively passive on the Tallinn Stock Exchange. The TALSE stock index climbed 1.51 percent to 176.95 points over the week. Calculated in euros, the price index of the five Estonian Baltic List shares gained 1.5 percent to 148.48 points over the week.

The weekly turnover was 78.5 million kroons ($4.43 million) from 661 deals. The Baltic List shares contributed 95.6 percent of this turnover, 75.1 million kroons.

The board at Kaubamaja has announced its decision to pay a dividend of 10 kroons per share to shareholders.

Bolstered by the hope of big dividends, the share briefly rose as much as 15 percent on March 13 and closed nearly 10 percent higher at the end of the day. Later Kaubamaja moved down a little and closed 5.62 percent higher at 58.83 kroons on 9.94 million kroons in turnover at the end of the week.

Of the blue chips, shares in Eesti Telekom rose 7.68 percent to 83.40 kroons, crossing the 80 kroon level, which had been unassailed for 10 months. The turnover from deals with the share was 18.7 million kroons.

Experts believe the reasons for the price rise were the upward movement of the neighboring Russian market, as well as recovery of the telecom sector throughout Central and Eastern Europe.

Hansapank closed the week 1.85 percent down at 207.32 kroons on a 37.6 million kroon turnover, accounting for 48 percent of the total turnover of the market.

The Dow Jones Riga Stock Exchange capitalization index slipped 4.7 percent to 160.6 points over the week, and the Latvian Baltic index of Baltic List stock prices in euros fell 5.27 percent to 211.06 points.

Meanwhile, the RICI price index was up 0.91 percent to 179.84 points over gains by several low-liquidity stocks.

The weekly turnover on the stock market was extremely low, at just 36,051 lats ($56,684). The Baltic List stocks contributed 10,169 lats or 28 percent of the total.

The average daily turnover on the Riga Stock Exchange last week was $10,000. Such a low turnover is once again starting to make traders wonder about the very existence of the Riga bourse.

Latvijas Gaze's shares again suffered large losses, taking down with them most of the stock exchange indexes.

The company's stock sank 8.5 percent to 5.03 lats on a trade of 6,863 lats. Since February the company's shares have lost 17 percent. The trend is likely to continue.

The oil terminal Ventspils Nafta shares charged ahead by 6.8 percent to 0.63 lats on a trade of 3,306 lats, mostly over a sudden upsurge of oil prices on the world market.

The Lithuanian stock exchange saw no market-moving news last week, and most stocks followed a downward trend amid modest trading volumes.

Blue chip Lietuvos Telekomas emerged as the best performer. But its central market turnover was below 500,000 litas ($127,375).

The bourse's benchmark price index Litin-10 slid 2.87 percent to 1,145.56 points, the blue chip index Litin edged up 1.81 percent to 346.38 points, and the broad index Litin-G was off 0.47 percent to 954.87 points.

Calculated in euros, the price index for the six Lithuanian Baltic List stocks, fell 0.45 percent to 143.68 points.

The week's equity turnover reached 5.9 million litas, with Baltic List securities trading 3.25 million litas or 55 percent of the total.

Listed on the official list, Telekomas edged up 2.99 percent to 1.38 litas amid a turnover of 409,400 litas. Another 1 million litas' worth of shares in Telekomas changed hands via block trades.

The electronics firm Vilniaus Vingis eased 1.98 percent to 4.46 litas on a turnover of 339,300 litas.

Market participants said the company's share price was moving downwards ahead of its next shareholders' meeting, which might signal that the company is going to make decisions unfavorable to investors.