New high for Baltic equity

The Baltic Index gained 1.86 percent in the past week to reach a record high of 212.13 points.

Total turnover of Baltic List stocks last week reached 6.7 million euros, though some 84 percent of trade originated in Estonia and over 71 percent on two stocks - Hansapank and Eesti Telekom.

The new highs, however, were as much reason for caution as euphoria, as analysts suggested the current rise in stock prices might soon meet resistance.

"For Telekom that price level is not new, therefore the present rise in the price cannot be considered to be fast," Sten Sumberg, chief of markets department at the investment bank Suprema, said.

"But a further price rise will be held back by the consensus among market participants that the stock shouldn't climb above 7 euros," he said.

Eesti Telekom gained 2.7 percent during the week to finish at 101.8 kroons, or 6.5 euros, with a turnover of 20 million kroons.

Hansapank, Baltic markets' most capitalized company, edged up 0.5 percent to 277.5 kroons, or 17.7 euros.

Hansapank has been making rapid gains so far this year, said Sumberg, and it shouldn't move much higher in the next three or four months, as market participants see the bank's stock as fairly expensive.

Norma, another Estonian blue chip, was flat over the week, though the stock remains at its highest level in five years.

"Norma's share will probably rise in the course of a couple of weeks ahead of the payment of dividend, after that the price may come to hold or move lower," Sumberg said.

In Lithuania, the run of the bulls continued, as investors focused their attention on beverages, electronics, telecommunications and utilities.

Vilniaus Vingis, manufacturer of electronic equipment, was one of the few losers, ending the week 3.5 percent lower at 7 litas (2.03 euros), while TV-tube maker Ekranas slid 2.8 percent to 5.2 litas.

Refrigerator producer Snaige, an investors' favorite, jumped 4.4 percent to 141 litas on a turnover of 707,500 litas.

Utenos Trikotazas charged ahead by 13.7 percent to 5.89 litas, making the stock last week's winner among blue chip stocks.

In the beverage sector, Stumbras, Lithuania's largest distillery which is in the process of privatization, added 4.6 percent, while Vilniaus Degtine surged 16.2 percent to 1.00 litas on light turnover.

In block trading, 1.4 million shares in Panevezio Pienas, or 10 percent of the dairy company's outstanding stock, changed owners. Rokiskio Suris, cheese producer and another blue chip stock, confirmed that it acquired the shares.

In Riga, markets were exceptionally dull, with turnover amounting to 5.3 million euros, or all of 2.6 percent of overall Baltic equity trading.

The most activity on the Riga Stock Exchange came from second list Latvijas Balzams, the liquor maker, which saw 1.4 million euros in trades, though the stock price collapsed by 33.8 percent. Most of this came from block deals, with 7 percent of the company stock changing hands.

Analysts said the huge drop was expected after the end of the buy-out program announced by S.P.I. Distilleries, which recently took control of the company.

The troubled Ventspils Nafta oil terminal fell 5.6 percent, while Latvijas Kugnieciba (LASCO) shipping was down 6.2 percent.