In August total Latvian capital market trading volume amounted to EUR 35.4 (LVL 21.0) million, while equity market traded value reached EUR 21.63 (LVL 12.82) million. Though equity market monthly turnover dropped by over 40% in comparison to July or June, trading volume in August was about an average level of the last years; hence, the explanation for relative turnover decrease is distinguished trading activity in mid-summer rather than investorsí passivity in August. The main contributor to equity turnover was block deals with Latvijas G'ze shares: after two monthsí interruption, they surpassed Latvijas kuÏniecÓba ( LASCO) shares, and restored their market leader status.
Monthly trading turnover in debt market was low, EUR 12.06 (LVL 7.15) million only. On August 9 all the offered Mortgage and Land bank- issued mortgage bonds at total nominal value EUR 1.69 (LVL 1.00) million were placed via an auction at the RSE. The yield of debt securities in Latvian capital market has dropped significantly this year, and in the auction the securities were sold for annual yield 5.78%. Total nominal value of debt securities reached EUR 489.53 (LVL 290.39) million, thus, demonstrating a slight increase of EUR 6.07 (LVL 3.6) million. At the same time, equity market capitalisation during the month declined by more than EUR 13 million (LVL 7.72 million) to EUR 702.16 (LVL 416.38) million as of August 31.
If compared to the end value of the previous month both RSE indexes diminished; capitalisation index Dow Jones RSE showed a drop of 4.51% to 165.95 points; RICI index lost less - 2.10% or 4.54 points, stopping at 211.14 points. The reason behind the depreciation of indexes is the drop of all three Official list shares, especially, LASCO that lost almost 12% of its value. Kaija stock price fell by 23.68% to EUR 0.49, and left a strong influence on RICI index as well. It should be mentioned that Kaija, after the announcement of delaying dividend payments, was transferred to Surveillance list, and the surveillance status will be removed only on October 21, 2002, the new date announced by the company as the dividend pay-out day.
Tallinn
TALSE index added 5.05% during the month ñ ending the month at 171.74. The trading activity was stable to lower ñ the monthly turnover reached 12 mln EUR compared to 14 mln EUR the month before.
By preliminary estimates the economic growth in Estonia was 6.5% in Q2 2002 compared to the same period a year earlier, the Statistics Office said. The analysts said the figure was substantially higher than forecasted, citing overheating signs of the economy. The central bank said that the main growth factor is domestic demand as well as growth in exports.
TSE Listing Committee satisfied application of Sampo Pank for delisting from the TSE Main List. Sampo Pank shares were delisted as of 19.08.2002. The delisting decision came after the strategic owner of the 3rd largest bank had executed take-over offer of minority shares.
The number of people who have joined the funded pension system, has increased to 68,000 by the beginning of September. The funded pension system is the 2nd pillar of the Estonian pension system, supporting the 1st pillar by mandatory as well as voluntary contributions by employees.
Vilnius
In August, summer-time tendencies continued to dominate the securities market. The total securities turnover, equalling EUR 22 (LTL 77) million, was the lowest not only this year but also during five last years. With the share demand down by more than a quarter, share turnover, as compared to the previous month, decreased by 7.4% to EUR 6.8 (LTL 23.6) million (by 42% less than in August 2001). In the total turnover, share turnover accounted for 31%. Trading volumes of the Government securities declined by 62% and reached EUR 15.5 (LTL 53.4) million (a decrease of 47% as compared with the corresponding period last year). It should be noted that shares of Lifosa AB, which is currently undergoing the restructurisation, accounted for as much as 66% of the total share turnover. Eolian Trading Limited (Cyprus) acquired a 77.86% block of shares of the latter company from other shareholders.
During eight months of the current year, the total securities turnover at the Stock Exchange reached EUR 316 (LTL 1,091) million, which is slightly more than during the corresponding period in 2001. However, shares turnover accounted for 22%, whereas in 2001 it made 31%. Trading in shares on the central market increased by one forth, and that by block transactions was twice smaller. As there was no clear leader, in August, share turnovers of eight companies were over EUR 72.4 (LTL 250) thousand. Since the beginning of the year, the central market share turnover accounted for 38% (cf. 22% in 2001). Capitalisation of listed shares improved by 3%, values of LITIN-G and LITIN-10 indices went up by more than 2%, and since the beginning of the year - by 8.5% and 10%, respectively. A 2.4% fall of the Official List index LITIN was caused by more than a 6% decline in the share price Lietuvos Telekomas. Since the beginning of the year, this index has lost 7% of its weight.
