In April Latvian capital market turnover amounted to EUR 75.59 million (LVL 42.88 million). Equity trading volume was EUR 16.09 million, traditionally surpassed by debt trading, which contributed EUR 59.5 million. Equity market capitalisation at the end of the month was LVL 281.16 million (EUR 495.86 million), while total value of debt securities was EUR 521.35 million. Both Dow Jones RSE and RICI indexes have depreciated since the end of the previous month - by 0.66% and 3.35% respectively.
In equity market Latvijas Gaze with LVL 8.65 million turnover was the market leader. The turnover increase was largely owing to block trades or registered trades. In debt market, as usual, the leader was Government Treasury bond with 5-year maturity, with LVL 27.23 million turnover in 31 deals.
Another attempt to sell Latvijas Kugnieciba, one of the few remaining state companies earmarked for privatisation, ended with a failure. The Government is expected to revise the privatisation rules for the company.
According to provisional data, the Latvian GDP has increased by 6% during the first quarter of the year, which allows for optimistic forecasts for the entire year.
Tallinn
Tallinn Stock Exchange (TSE) and HEX Group of Finland finalised share purchase and shareholder agreements, as a result of which HEX has acquired a 52.4% ownership in the TSE. The Ministry of Finance has also decided to sell its holding. TSE and HEX will now start to focus on operational issues, the main aim of which is to launch trading with Estonian securities in the HEX trading system during this year.
Estonia's gross domestic product (GDP) in 2000 grew by an annual 6.4% according to the Statistical Office, compared to a fall of 1.1% the year before. The growth by quarters during the year was as follows: 5.2%, 7.5%, 7% and 6%.
Hansapank and Lithuanian State Property Fund signed an agreement for the purchase of 90.73% shares in Lietuvos Taupomasis Bankas (Lithuanian Savings Bank) on April 23. The purchase price paid in cash is EUR 42 million. Additionally, Hansapank will commit to invest EUR 42 million over a period of 18 months in the Lithuanian bank. Hansapank is aiming to develop the bank into a leading bank in Lithuania.
Eesti Telekom will propose its AGM to authorise the management board to buy back up to 5% of the shares of Eesti Telekom during one year. The telecommunications company will also propose its AGM to pay dividends EEK 5.5 per share, which includes extraordinary dividends in the sum of EEK 1.5 per share.
Vilnius
This month, the most active trading was performed in shares of Lietuvos Telekomas and Lietuvos Jûrø Laivininkystë. On 30 April 2001, at the general meeting of Lietuvos Telekomas shareholders dividends of LTL 0.15 per share were approved. At the end of the month, the State Property Fund signed a contract with the Danish company DFDS Tor Line regarding privatisation of LISCO. While there is no news so far regarding reorganisation of the company and buy-up of shares from the minority shareholders, activity of trading in shares of the shipping company should remain among the highest ones in May as well. The State Property Fund also signed a contract with the Estonian Hansapank regarding privatisation of Lietuvos Taupomasis Bankas. The Estonian bank has announced its intentions to buy up shares from minority shareholders at the same price which was paid for the privatised state shares (LTL 9.88). Turnover of the Bank's shares should be quite large, however, trading in these shares will be more like that conducted in high-risk debt securities until the tender offer is officially registered.
From 30 April 2001, shares of Birþø Akcinë Pieno Bendrovë and Ventus-Nafta are removed from the Current Trading List. For the following six months, central market procedures will be applied to these shares. Moreover, from 1 June 2001 share issues of Klaipëdos Transporto Laivynas and Takioji Neris will be delisted from the Current Trading List. The NSEL forecasts that at the end of the six-month period approximately 47 companies will be listed on the Official and Current Trading Lists of the Exchange.
