Estonian and Lithuanian shares pull Baltic Index down

  • 2000-03-30
Despite a valiant effort by Latvian stocks last week, the Baltic Index was dragged down by sagging shares in neighboring Estonia and Lithuania. The continuing rally by Ventspils Nafta - up by 8.39 percent, to 1.41 euros ($1.36) - wasn't enough to keep the region's blue-chip Baltic Index in positive territory. The index slipped 0.47 percent to 118.01. Only three stocks advanced on the Baltic List, with nine moving down and Hansapank unchanged.

The four Latvian stocks posted a combined gain of 0.68 percent to 123.93, consolidating further their leadership position on the List. This gain didn't carry over to the Riga Stock Exchange's indexes, as the DJRSE finished unchanged at 113.05, and the RICI slipping 1.89 percent to 186.88.

Estonian blue-chips fared worse than the overall market. The index of the five Estonian stocks listed on the Baltic List fell 1.24 percent to 110.26, with the Tallinn bourse's TALSE index down only 0.48 percent to 169.50. The four Lithuanian stocks on the Baltic List slipped 0.76 percent to 121.78 on virtually no turnover.

The Vilnius bourse's official list LITIN index fell 2.79 percent to 604.84, and the LITIN-10 price index similarly sank 3.41 percent to 1226.64.

Turnover slid 27 percent from the previous week, to 5.3 million euros. Estonian stocks generated a turnover of 2.9 million euros, or 55.45 percent of total turnover. Latvian shares accounted for 42.22 percent of the total with 2.3 million euros of turnover. Lithuanian stocks had a turnover of just 123,000 euros, or 2.32 percent of the total. Latvian stocks have just about tied Estonian stocks for turnover volume, with Unibanka last week's leader, with 1.5 million euros of shares changing hands. Baltic List shares accounted for 69 percent of the total turnover on the Tallinn Stock Exchange, 91 percent on the Riga Stock Exchange and just seven percent on the Vilnius bourse.

Market capitalization of Baltic List stocks was practically unchanged at 2.82 billion euros. Estonian stocks had a market capitalization of 2.19 billion euros (-0.6 percent), Latvian stocks 425 million euros (+1.25 percent) and Lithuanian stocks 206 million euros (+1.47percent), due to Vilnius Bank's increased capital.

On the world bourses the traditional stocks continued to rebound, with New York's DJIA jumping 4.98 percent to 11,122.72 and London's FTSE-100 up 2.75 percent to 6,738.50. Investor confidence in Vladimir Putin's expected victory in the presidential elections on March 26 helped push up Russia's RTS index by 11.44 percent to 243.92, a 62 percent gain since the start of the year.

Estonia: Trading and prices slide

The Tallinn stock exchange suffered from both lack of news and declining volumes in the past week. "The market saw low activity and a lack of substantial turnovers," Uhispank trader Mart Helmja said on Friday. The TALSE index finished 0.48 percent lower at 169.50.

Three of the five Estonian stocks quoted on the Baltic List fell, dragging the Estonian index down 1.24 percent to 110.26. "Apparently we're having a small stabilization period," Helmja said. He added that quiet is expected to continue into the near future as no news that could boost activity is in sight. "Price movements may come only as some companies will release their results for the first quarter," Helmja said.

On the main list Telekom was the most traded share, with a turnover of 15.2 million kroons ($941,680). Telekom ended the week down 0.17 percent at 148.25 kroons. Hansapank and Norma each produced turnovers of more than 11 million kroons. Hansapank ended the week unchanged at 137.50 kroons, while Norma rose 0.91 percent to 44.40 kroons.

Shares in Saku Olletehas attracted the most attention, the trader added. Saku thrived in brisk trading on Monday and Tuesday, but on Wednesday selling pressure set in and the share fell eight kroons. This drop reflects the value of dividends payable to shareholders. Shares in the brewery bought after Tuesday are not eligible for dividends. For the week, Saku produced the biggest turnover of secondary list issues - 8.23 million kroons. Friday to Friday, the share fell 10.45 percent, to 60.0 kroons.

Market turnover for the week totaled 66.4 million kroons. Baltic List stocks generated 2.93 million euros of turnover, or 69 percent of the total.

Latvia: Ventspils Nafta continues rally

Ventspils Nafta continued to climb last week, helping to keep the Latvian market looking perky, as compared to its Baltic neighbors. The DJRSE index was practically flat, ending up 0.01 percent at 113.05. The RICI price index fell 1.89 percent, however, to 186.88. Blue-chips continue to outperform the overall market, with the four Latvian stocks quoted on the Baltic List gaining 0.68 percent to 123.93, at the top for the three Baltic states.

Ventspils Nafta continued to rise last week, jumping a further 8.39 percent to 1.41 euros. The oil terminal's stock price has risen 68 percent since the beginning of the month. The shares remain at the center of attention for investors, thanks to the decision by the privatization agency to sell 12 percent of the company's shares substantially higher than the current market price.

Trading in Unibanka shares not only dominated the Latvian market, but came in first in the Baltics as well. On a turnover of 1.55 million euros the bank's share price slipped 3.82 percent to 2.91 euros. But taking into account the fixing of the shareholder list for payment of the 0.075 ($0.125) lat per share dividend on March 22, investors who held shares before that date are still ahead.

Despite the approach of the auction of Latvian Gaze shares on Monday, interest on the bourse was slight. The gas utility's share price slid 1.04 percent to 3.60 euros. The low interest in the shares most likely indicates investors feel the shares will unlikely be bought for a price higher than the current market price.

Of non-Baltic List stocks, trading was active in shares in the Staburadze confectionery. Its share price was up 3.6 percent to 1.14 lats on a turnover of 71,000 lats.

Turnover of the bourse last week totaled 1.43 million lats. Baltic List shares generated a turnover of 2.23 million euros, or 91 percent of total turnover.

Lithuania: Investors away on spring break?

Trading on the Lithuanian National Stock Exchange was deadly quiet last week, with the slow rise in share prices over the past several weeks changing to a slow downward slide. The official list LITIN index fell 2.79 percent to 604.84, and the LITIN-10 price index by 3.41 percent to 1226.64. The current list LITIN-A index fell 1.65 percent to 1119.90. The four Lithuanian stocks quoted on the Baltic List slipped 0.76 percent to 121.78, staying in second place behind Latvia.

"Liquidity on the market has thinned - with the spread between bid and offer prices increasing, so the market is passive," Suprema broker Arvydas Jacikevicius said.

Of official list shares, trading was most active in Vilniaus Bankas, with 359,000 litas ($89,750) turnover. The bank's share price slid 1.91 percent to 8.31 euros. Hansabankas broker Tomas Andrejaskas said Vilniaus Bankas' current market price is realistic and is unlikely to change significantly in the near future. With the knowledge that the bank intends to pay dividends, a rise in the bank's share price is to be expected only before the shareholders meeting.

Shares in Rokiskio Suris climbed 1.5 percent to 6.162 euros on a turnover of 113,400 litas. Trading in other official list shares was even thinner.

On the current list investors focused on shares in Mazeikiai Nafta. The oil refinery and terminal complex's share price fell 4.12 percent to 0.93 litas on a turnover of 165,400 litas. Brokers say the continuous stream of bad news for the company is pushing down the share price.

Turnover on bourse totaled 5.85 million litas. Even with that low turnover Baltic List stocks accounted for less than 10 percent of the total, comprising just 123,000 litas.