May of 2000 will be memorised in Latvia for the EBRD Annual Meeting. The key topic of the Business Forum, a traditional parallel event, was "Investment, Trade and Cross-border Co-operation". A vivid interest was observed about investment opportunities in the Baltic region. The major international gathering was attended by well over 1 thousand business guests.
The Riga Stock Exchange will be recommended by the executive bodies of the European Federation of Stock Exchanges for admission in the status of Corresponding Market. The final decision is expected to be taken by the General Assembly in Luzern at the beginning of June.
The Securities Market Commission of Latvia has issued regulations regarding registration of non-resident investment companies for providing intermediary services. The new regulation gives the green light to cross membership. The SMC has also amended prospectus requirements for mortgage bond issues. The new procedure is expected to enhance the development of mortgage bond market. Estonia's Q1 2000 gross domestic product (GDP) rose 5.2 per cent year-on-year, according to preliminary data released by the Statistics Office. The economic fall bottomed out in the fourth quarter last year, when it posted a growth of 1.8%. Estonia's economy contracted last year by 1.1% in 1999 while quarterly figures for GDP were -5.5%, - 2.5%, -0.5% and 1.8%, respectively.
The Tallinn Stock Exchange made amendments to its Rules and Regulations, according to which the Exchange has a right to publish the lists of investors having a substantial shareholding in listed companies Thus far TSE has published such information only in cases where an investor's holding in a listed company reaches, exceeds or falls below certain thresholds. Lists of investors having substantial shareholdings (above 5%) in listed companies will be available on TSE internet homepage.
The government decided not to sell its remaining 27 per cent stake in Estonian Telecom (Eesti Telekom) in the near future. The state will remain to be a financial investor in the company, and will assign dividends received from the company to the country's stabilisation reserve fund. Another drive to postpone the offering was also the current instability among the technology share prices in capital markets. The government may review the decision in the second half of 2001.
The economic ministers of Estonia and Latvia signed a Letter of Intent on closer co-operation and prospective merger of a major potential public company Eesti Energia and Latvenergo, the Estonian and Latvian state-owned energy conglomerates. Eesti Energia had net sales of EEK 4 billion (EUR 256 million) in the financial year 1999/ 2000. It has said it aims for an IPO and listing in the coming years. On 26 May, privatisation consultants of Lietuvos Telekomas announced that shares of Lietuvos Telekomas would be sold within price spread of LTL 3.00-3.80. Share allocation is expected on 12 June.
The NSEL received an application to include shares of Lietuvos Telekomas into the Official Trading List. On 5 June, the Board of the NSEL established the order of trading in shares of AB Lietuvos Telekomas on 12 June 2000. Provided that AB Lietuvos Telekomas fulfills the requirements set forth in the decision of the Board of the Stock Exchange of 5 June 2000 and shares of the issuer are included into the Official Trading List until 1.30pm on 12 June 2000, a special trading session will be organised.
In addition, the Board of the NSEL passed a decision to transfer shares of Birþø Akcinë Pieno Bendrovë from the Official List to the Current List from 22 May, due to deteriorating results of economic and financial activity. Shares of Stumbras and Klaipëdos Transportas are traded on the Current List from 22 May. Shares of Ðvyturys and Marijampolës Pieno Konservai are removed from the Current List and moved to the group of Unlisted securities to which central market procedures are applied.
In May, two block transactions were concluded with shares of Lietuvos Draudimas: 156,214 shares (28% of the authorised capital) were sold for LTL 58.9 million, at LTL 377.00 per share. This is the share price that the Danish insurance company Codan paid when acquiring the state held share block of Lietuvos Draudimas.
Estonian, Latvian and Lithuanian stock exchanges launched their joint Internet homepage at http://www.baltic-exchanges.com. The web-site is an entry point to the Baltic capital markets, providing information on three markets in general, Baltic List companies as well as co-operation projects between the Baltic stock exchanges. The site also includes online trading information of the Baltic List companies.
