In May the Riga Stock Exchange trading volume amounted to EUR 19.06 million. Equity trading volume of EUR 10.05 million, though nearly twice lower than in April, still surpassed debt trading, which was EUR 9.01 million. Latvijas balzams with EUR 7.12 million was the top traded company, to be followed by Ventspils nafta with EUR 0.95 million turnover. Latvijas Gaze with EUR 333.5 million continued to be the top company in terms of capitalisation; Ventspils nafta with EUR 154.2 million and Latvijas kugnieciba with 90.36 million were the next two.
In May the main price winners were Kaija (55.56%), Rigas TF (27.27%), Grindeks (15.25%) and Valmieras SŠR (10%); the price losers of the month were Latvijas balzams (-34.42%), Ditton PKR ( 14.29%) and Liepajas ML (-13.04%).
Equity market capitalisation at the end of May stood at EUR 755.98 million; total debt market value was EUR 551.51 million. Dow Jones Riga Stock Exchange index has gained another 2.18% during May; the increase since the beginning of the year is already 21.42%. Latvijas balzams share buyout offer by "S.P.I.Distilleries B.V." closed on May 6, 2003: 2.44 million shares were redeemed at LVL 1.56 per share. Subsequent to the buyout, the estimated company free float is 17.41%.
Tallinn
Trading activity of Tallinn Stock Exchange remained active at EUR 52 million and the share prices gained by 9.48% during May. Investor interest was kept alive by dividend payments and disclosure of Q1 results.
Joining the funded pension system has become more active. As of May 31, the number of people joined the 2nd pillar was 238 481 whereas some 13 640 people joined the system during May.
Rating agency Fitch upgraded Hansabank's individual rating by one notch to B/C. It said that the rating action reflects Hansabank's strong track record of profitability, healthy asset quality, conservative risk management and its rapid and effective integration of the Lithuanian Savings Bank into Hansabank Group.
The Boards of Directors of HEX and OM announced plans to merge the companies in order to create an integrated Nordic and Baltic market for listing, trading, clearing, settlement and depository of securities. Through the merger, a leading provider of marketplace services and transaction technology, OM HEX, will be created. HEX is strategic owner of HEX Tallinn, the leading securities market company in Estonia that incorporates Tallinn Stock Exchange and Estonian CSD.
TSE member firm Mandatum Stockbrokers terminated the TSE membership as of May 30. Mandatum Stockbrokers Ltd, a member of Sampo Group has decided to continue trading via the group's Estonian subsidiary, Sampo Pank.
Vilnius
In May, the securities turnover (EUR 54.5 million) was the highest this year and one of the highest May turnovers in the history of the Exchange. Debt securities subject of solely negotiated deals for 71% of this index and their turnover was by a quarter higher than last month. Share turnover was 3.6 times bigger than in May last year and slightly lower than in April 2003, when it reached the current year's record level.
Active involvement of investors caused growth of the CM turnover - turnovers were rising since the beginning of the year amounting in May to EUR 8.7 million. This is the highest monthly share turnover on the CM in the history of the Stock Exchange. From the beginning of 2003 share price indices LITIN-G and LITIN-10 have been on the rise, while index LITIN has been mowing upward from February 2003. Their growth in May was 12,8%, 9%, and 11% respectively.
Most interest was exhibited in alcohol companies placed under privatisation and power distribution networks companies anticipating privatisation. The share prices of East Distribution Networks Company and West Distribution Networks Company have exceeded the LTL 1 threshold and have grown by over 24%. The price of Vilniaus Degtine AB shares grew by a third and an 11% growth was recorded by Stumbras AB and Alita AB. The shares of the companies intended for privatisation accounted for one third of the CM turnover. The demand for Snaige AB's shares remained on the same level, with a 17% rise in the share price. The shares of Lietuvos Telekomas AB traditionally accounted for the major portion of the CM turnover (nearly EUR 1.2 million).
From the beginning of the year, the total securities turnover has summed up to EUR 221 million, which is 7% more than during a corresponding period last year. Share turnover has reached EUR 56 million and that of debt securities has summed up to EUR 165 million, which is by 30% and 56%, respectively, more than in 5 months of 2002.
