Markets still dragging along

Investors' worrisome mood led the Baltic Index to nudge down 0.4 percent last week to 170.14 points, with only Estonian equity showing any signs of bullishness.

The Latvian market was exceptionally slow throughout the week, as investors regarded the country's economic perspectives and government policies as unclear.

In Tallinn, Hansapank and Eesti Telekom were among the week's gainers, rising 1.3 percent and 1.2 percent to 15.67 euros and 5.59 euros respectively, on rather low trading at the Tallinn Stock Exchange. Increased activity is expected this week on the Estonian stock market once Eesti Telekom, a leading blue chip, releases its annual results.

"Eesti Telekom's results is what everyone is waiting for," Sampo Pank broker Peeter Koppel told the Baltic News Service. "Global trends permitting, I would expect activization and upward price pressure," he said.

The winner last week was Lithuania's Vilniaus Vingis, the electronics maker, which climbed 1.45 percent to reach 2.03 euros.

The week's losers were Ekranas, Latvijas Kugnieciba (LASCO) and Lietuvos Telekomas. The latter fell 4.5 percent, marking its second straight week of losses. Investors are concerned about fixed-line market deregulation and the demand for shares linked to a property restitution program organized by the Lithuanian government.

In Riga, the week's gainer showed up on the RSE's Second List. Shares of second-tier Ditton PKR surged 8.3 percent. Latvijas Balzams, the famous liquor distiller, also enjoyed a brisk week, as its stock price finished up 4.1 percent at 0.81 euros.

Ventspils Nafta lost 1.74 percent over the week as the company warned of grave earnings forecasts for 2003 if the oil transit issue is not solved soon. Ventspils Mayor Aivars Lembergs said Russian strategic investors could buy a stake in Ventspils Nafta for about $200 million, stressing that Russia's losses from its current standstill policy would more than cover the purchase of six such companies like Ventspils Nafta.