In July total Latvian capital market trading amounted to EUR 47.84 million (LVL 26.60 million). Equity market trading volume was high exceeding EUR 20 million (LVL 11 million), mainly, thanks to successful Latvijas Gaze auction that took place on July 19. In auction government sold 798 000 shares for the price EUR 22.49 (LVL 12.51); at the same time, Latvijas Gaze share price in Riga Stock Exchange was three times lower- EUR 7.46 (LVL 4.15). Trading turnover in Debt market was EUR 27.56 (LVL 15.33).
Total nominal value of debt securities reached EUR 548.33 million, while equity market capitalization as of July 31 was EUR 713.36 (LVL 396.78) million, in comparison with EUR 550 million in June. The sharp rise in capitalization should be explained by unexpected 66.83% Latvijas Gaze share price rise. Since Latvijas Gaze auction, its price has heightened from EUR 7.46 (LVL 4.15) to EUR 12.03 (LVL 6.69).
If compared to the end value of the previous month, RICI index has declined by 2.96% or 4.71 points. Meanwhile Dow Jones RSE went up by 34.15% or 48.20 points, for the first time in last three years surpassing 189 points limit.
Also, Latvijas Gaze with turnover rate reaching EUR 1.7 (LVL 0.95) million or 73% of total trade (excluding the auction) became unchallenged turnover leader among equity securities, leaving Ventspils Nafta with turnover volume EUR 353.5 (LVL 196.63) thousands as the second most traded stock.
According to the Central Statistical Bureau of Latvia, compared with May, producer price index in the Latvian industry in June declined by 0.1%. Inflation in June was 0.6% over May (CPI rise in May was 1%), but unemployment rate as of July 1 has diminished to 7.8%.
Tallinn
The Estonian securities market was inactive in July as the TSE turnover was down by nearly two times to EUR 13 million. Nearly half of the trading was generated in Hansapank shares, which posted a monthly gain of 4%. TALSE index was down by 3.2% to 137.12, influenced mostly by the fall of heavy-weight Eesti Telekom, which decreased by 14% during the month.
The international rating agency Fitch said that it had placed Estonia's ratings on outlook positive. Fitch has assigned Estonia long and short-term foreign currency ratings and long-term local currency rating of 'BBB+', 'F2' and 'A', respectively.
Estonia™s consumer price index (CPI) quarterly change was 1.6%, while the annual rise was 6.7% in Q2 2001, the Statistics Office said. Lithuanian Kauno Pieno Centras, the core investor of secondary list company Tallinna Külmhoone, decided to acquire the remaining shares in Tallinna Külmhoone from minority shareholders in order to increase its stake in the company to 100%. The offer is valid until August 17, 2001.
On July 23 Lõhmus, Haavel & Viisemann (LHV) started trading as a TSE member firm after having met all the TSE member firm requirements. Before that, LHV was accredited the account operator status of Estonian Central Depository for Securities (ECDS). LHV is the first non-credit institution to become an account operator, which should further investors' possibilities as well as enhance competition on Estonian securities market.
Vilnius
The growth of Lithuania™s GDP is speedier than many experts have predicted. Industry and trade performance indicators, a recovering internal market as well as capital investments contributed to such a rise. The GDP, produced during the first six months of 2001, amounted to LTL 22.8 billion, marking an increase of 5.1% over the corresponding period of last year.
Companies listed at the National Stock Exchange of Lithuania reported their semi-annual financial results. All Official List companies, commercial banks, and most of the Current List companies operated profitably.
The NSEL Current List underwent certain changes. From the beginning of the month, shares of Baltijos Laivø Statykla AB, Dirbtinis Pluoðtas AB, and Endokrininiai Preparatai AB were transferred from the Current List into the tier of Unlisted securities to which central market procedures are applied.
Over the month, the total capitalisation of the NSEL decreased by more than 4%. The NSEL equity indices also lowered: LITIN-G fell to 825.8 points (-9.2%) and LITIN-10 dropped to 996.9 (-2.9%). In July, market share prices of just seven companies improved. In July, securities turnover at the Stock Exchange was traditionally lower than in the first six months and came to LTL 64.5 million. Thin trading was recorded in debt securities which were not traded on the central market. Compared with June, trading volumes by block transactions fell by 68.5% and reached LTL 27.1 million (the smallest turnover from the beginning of the year). In the total turnover, trading in debt securities took 42% (71% in June).
On 9 July, the tender offer to buy up Lietuvos Taupomasis Bankas™ shares, which remained after the privatisation, at LTL 9.88 per share, ended. In total, 798,173 shares were bought for LTL 7.9 million. In addition to the Bank, the most active trading was carried out in shares of the following companies: Lietuvos Draudimas AB (LTL 9.1 million), Lietuvos Telekomas AB (LTL 6.2 million), Ûkio Bankas AB (LTL 6.1 million), Snaigë AB (LTL 2.9 million), and Rokiðkio Sûris AB (LTL 2.2 million).
