Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

Baltic Stock Exchanges Monthly Statistics June 2001

Date 18/07/2001

Riga

In June total Latvian capital market trade added up to EUR 101.4 million (LVL 55.16 million), and habitually, debt market was in dominance with turnover over EUR 87 million (LVL 47.79 million). Equity trading volume was fair, reaching the level of EUR 13.56 million (LVL 7.37 million), for the most part owing to Balta shares buy-back executed by Codan. Now Codan owns over 99% of Balta shares.

Equity market capitalization as of June 29 was EUR 550.59 million, whereas the total value of debt securities amounted to EUR 560 million. If compared to the end value of the previous month, RICI index has declined by 1.28% or 2.04 points, meanwhile Dow Jones RSE went up by 2.11% or 2.91 points.

Valmieras SS, with turnover exceeding EUR 1.17 million, became the second most traded share during June, while Balta was an unambiguous equity market leader with EUR 11.55 million turnover. In debt market, like in the previous months Government bond with 5-year maturity with EUR 37 million turnover remained the most traded item.

According to official statistics GDP in Latvia in the first quarter of the year has reached a remarkable figure of 8.2% if compared to corresponding period of previous year. Inflation in June was higher than in the previous months of 2001- CPI increase in May was 1% over April.

Tallinn

The monthly trading turnover fell 40% to EUR 25 million in June. The TALSE index fell by 4.2% to 141.63, mostly influenced by the 11% and 6% fall of the heavy-weight stocks Eesti Telekom and Hansapank during the month.

The Central Bank of Estonia reduced Estonia’s gross domestic product (GDP) growth forecast for this year to 4.5-5.3%, down from its previous estimate of 5-6%. It is compared to the economic growth of 6.4% in 2000. The central bank stated in its recently published quarterly monetary report that the main reason for the reduced estimates is the worsening of the international economic environment, which will have a negative impact on the country™s exports.

According to preliminary calculations, Estonia™s Q1 2001 GDP was up 5.8% on an annual basis, the Statistics Office said. By economic activities, the value added increased most in manufacturing (12.5%) and in financial intermediation (8.4%), followed by construction (7%), real estate, renting and business activities (6.5%), and by transport, storage and communication (6.2%). The value added decreased only in electricity, gas and water supply (6%) and in health and social work (3.7%).

The Estonian Accounting Standards Board and Tallinn Stock Exchange awarded Hansapank with the title The Flagship of Estonian Accounting Award 2001, with which it was accredited as the issuer with the exemplar accounting standards in Estonia this year.

Vilnius

A Lithuanian shipping company Lietuvos Jûrø Laivininkystë AB was reorganised into two individual companies. The registered authorised capital of LISCO Baltic Service AB (LBS) equals 323,907,434 ordinary registered shares at LTL 1 par (LTL 323.9 million) and that of Lietuvos Jûrø Laivininkystë AB is 200,901,296 ORS at LTL 1 par (LTL 200.9 million). The Danish company DFDS Tor Line owns 76.36% of shares of the newly established LBS. From 9 July 2001, shares of the two companies will be included into the Current List.

On 1 June, at the State Property Fund the Memorandum of Completion of the transaction for the purchase of 90.733% shares in Lietuvos Taupomasis Bankas AB (LTB) was signed, and shares of the LTB were transferred into the ownership of Hansapank AS. Hansapank AS paid USD 37.5 million (LTL 150 million) for a 90.733% stake.

In June, the total turnover of the NSEL was by 36% smaller than in May and accounted for LTL 120.83 million. In June, central market trading volumes were lowest this year and totalled just LTL 6.5 million, 40% of which fell to the Government securities. Share turnover of the Current List companies contributed 83.5% and that of Official List companies added 14.8% to the total share turnover.

In the second quarter, share turnover of LTL 144.7 million was by one third larger than that of the first quarter of this year but by 28% lower than the average quarterly turnover of 2000. The total turnover of the second quarter reached LTL 415 million, and the turnover for the first six months of 2001 stood at LTL 872 million.