Markets come to life

A string of 2002-earning announcements - most notably by the Baltic heavyweight Eesti Telekom - helped boost market turnover last week and bring out bullish investors who had been conspicuously absent in recent weeks.

The Baltic Index gained 3.3 percent to 180.76 points.

In Tallinn, the Hansabank Group's results were naturally anticipated from the beginning of the week, but traders had already factored in a stellar annual performance by the Baltic leading bank. As a result, the bank's share price barely budged over the week by 0.7 percent to reach 16 euros per share.

Eesti Telekom, meanwhile, lost 2.4 percent finishing at 5.56 euros, making the stock one of this week's losers.

In Vilnius, lively trading centered around Snaige's and Vilniaus Vingis' earnings announcements, which will include hefty dividends for shareholders.

Both stocks were winners, up respectively 8.1 percent and 6.4 percent.

In Latvia, according to market observers on the Riga Stock Exchange, the Cabinet's move to amend the law on personal income tax was the main event of the week.

"If this decision is passed it may undermine the very foundation of the securities market and also have an adverse effect on investors' interest to invest in companies," Riga Stock Exchange President Guntars Kokorevics told the Baltic News Service.

Corporate income tax paid by EU companies distributing dividends will next year be reduced to 15 percent from the current 25 percent. The bill has been criticized by stock market players because the decision was made without consulting them.

Ventspils Nafta, the troubled oil terminal, proved to be the most liquid equity on the Latvian market. Traders say the company's share price may rise if JSC Latvijas Naftas Transits, its largest shareholder, acquires another 5 percent stake from the state.

The price would also rise if the government decided on the privatization of its 43.6 percent stake, according to traders.

Weekly turnover on the three stock exchanges reached 7.2 million euros, 83 percent of which was accounted for by Estonian stocks.