The cash offering of 51% of LASCO shares in domestic and international market on June 25 was the central event of the month. All the shares put out for sale were sold at the price of EUR 0.59 (LVL 0.35, thus raising EUR 59.9 (LVL 35.7) million to the state. Latvian residents have bought 61.43% of the offered shares, while international investors - 38.57%.
In June the total Latvian capital market trading turnover was EUR 110.54 (LVL 65.88) million, exceeding the same month in 2001. This record turnover is largely owing to LASCO auction. Yet, an increase in turnover was observed also in the regular secondary market - both equity and debt. Equity trading (excluding auction) reached EUR 22.72 (LVL 13.54) million, while the turnover in debt market was EUR 27.92 (LVL 16.64) Price index RICI dropped by 4.8% or 10.56 points during last month and at the end of the June stopped at 209.62 point mark. Dow Jones RSE dropped to 172.88 points, which is 1.26% or 2.21 points lower than in the previous month.
It took a mere three days for LASCO shares to become the turnover leader in equity market with EUR 21.19 (LVL 12.63) million The Official and Baltic list company Latvijas Gaze gained 0.55% of its share price and the turnover was EUR 785.03 (LVL 467.88) thousand. Ventspils Nafta turnover reached EUR 264.98 (LVL 157.93) thousand. As of June 28, the equity market capitalisation was EUR 736.96 (439.23 LVL) million, which is EUR 98.57 (LVL 58.75) million more than at the end of May.
Major changes are expected to take place in the Riga Stock Exchange shareholder structure. On June 28 fifteen shareholders, representing 92.98 per cent of Riga Stock Exchange shares, have accepted HEX Group's conditional offer and signed the share purchase agreement. After close of the deal HEX Group will become the majority owner of the RSE Group, consisting of the stock exchange and the depository.
Tallinn
TALSE index was up 22% during H1 2002, a surprising result in light of share price fall in many European and other world markets. TSE's trading turnover was 177 mln EUR in six months this year, up 21% compared to the same period last year. Estonia's eurobond issue of 100 mln EUR was oversubscribed by 2.7 times. The five year issue has a coupon rate of 5%. The majority or 55% of the investors are from Germany, Benelux investors accounted for 21%, U.K 9% and Switzerland 8%. Institutional investors accounted for 88% of the placement while retail investors had a stake of 12%. The state will refinance 13 upstanding loans with most of the issue.
On July 1 Estonian CSD launched indices showing the weighted average yield of funded pension funds. The indices reflect change in net asset value of pension funds' fund units. The indices help to monitor long-term investment trends of the funded pension system. Persons who have joined the funded pension system may compare yield of the fund they chose with the market weighted average yield as well as with the respective figures of other funds of the same strategy. Estonia's Q1 2002 GDP grew by 3.2% on annual basis, the Statistics Office said.
By economic activities, the value added increased most in construction (12.5%), and wholesale and retail trade (7.0%).
Vilnius
From 26 June 2002, amendments and supplements to the Trading Rules of the Stock Exchange came into force. Negotiations, which are economically important to the country, were completed: an agreement between the US company WILLIAMS and the Russian crude oil company YUKOS regarding acquisition of a block of shares of 26.85% of AB Mazeikiu Nafta and obligation to supply 4.8 m tonnes of crude oil each year, was signed. A strategic investment agreement was signed between the State Property Fund and the consortium of Ruhrgas AG and E.ON. Energie AG companies regarding the sale of a 34% stake of AB Lietuvos Dujos. A tender for gas supplier regarding acquisition of another 34% stake of AB Lietuvos Dujos shares was announced.
In June, the turnover was similar to the ones in the month of July during the last three years and reached LTL 119.2 million (EUR 34.5 million). This is by 7.5% less than the securities' turnover in May. The number of the share transactions fell twofold, however the average value of the transaction increased from LTL 3.4thou to LTL 14.5 thou (from EUR 1 thou to EUR 4.2 thou). Because of this reason, the share turnover improved almost twofold in comparison with the one in May and reached LTL 28.6 million (EUR 8.28 million), constituting 24% of the total turnover (10.6% in May). Privatisation transactions comprised 27% of share block transactions. A block of shares of 3.24% of a state owned company Lisco Baltic Service was successfully sold for LTL 4.4 million (EUR 1.27 million). As last month, the bulk of the trading fell to shares of Vilniaus Vingis and SnaigĂ. Shares of these profitable companies appreciated by 16% and 10% during the month, and by 57% and 35% from the year start, respectively.
The securities turnover of the Stock Exchange during the second quarter reached LTL 437 million (EUR 126.6 million) and was by 9.3% higher than during the first quarter of the year. Block trading in T-bills was much more active than the one in shares. This determined the rise of total turnover. Block trade turnover advanced by 19.5%.
The turnover of the first six months of 2002, as compared to the same period of 2001, was less by LTL 39 million (EUR 11,3 million). As forecasted, trading in T-bills was more active and augmented by 5%. The total central market turnover increased by 18%.
