Riga
In November Latvian capital market turnover amounted to EUR 130 million. Equity trading volume was EUR 82.8 million, surpassing trading with debt securities (EUR 47.2 million). Equity market capitalisation at the end of the month stood at LVL 352.67 million (EUR 657.92 million), which is a 1.89% increase over the end of October. Dow Jones RSE appreciated to the previous month by 3.25% and hit another high mark since the beginning of the year of 145.32 points on November 22. The index has increased by 62.71% over the end of 1999. RICI index showed an immaterial depreciation since the close of the previous month (-0.15%).
Due to the buy-back exercise, Unibanka demonstrated a record-high turnover for the month (LVL 40.5 million). Thus, Skandinaviska Enskilda Banken buy-back of Latvijas Unibanka shares has been succesfully completed, resulting in a 98.2% ownership and Unibanka becoming a member of SEB group. Consequently, it can be expected that Unibanka will be delisted from the RSE Official List.
Latvijas Gaze was the next most traded company during the month, the trades were LVL 1.15 million worth. The price of the company remained in the same high LVL 3.66 level as in the previous month. On December 18 an auction will be run at the RSE on behalf of Privatisation Agency, where another 2% of Latvijas Gaze state-owned shares will be offered to the market.
In secondary debt market Government 3 year and 5 year bonds (maturity on 06.11.2003 and 24.23.05 respectively) were traded at very similar volumes - LVL 7 million and 7.45 million. Nordic Investment Bank corporate bonds were traded at total value of LVL 2.95 million. Tallinn
Estonia's economic growth was an annual 6.9% in Q3 2000 according to preliminary estimates of the Statistical Office, compared to 7.4% and 5.2% in Q2 and Q1 respectively. The GDP growth has been continuous since Q4 1999, lasting also throughout the third quarter of 2000.
According to European Union's economic forecasts, Estonia is expected to post a 6.2% growth this year, leading a growth surge among in Eastern and Central European 13 nations applying for EU membership.
The Ministry of Finance has prepared the draft version of the new Securities Market Act and sent it for approval to the Ministry of Justice. The new act will replace the current outdated 1993 act and bring it fully in line with respective European Union requirements and other international standards. Different regulative acts from several European countries (Denmark, Germany, Sweden, Finland) were used in drafting the paper, as well as respective documents of the European Union membership candidate countries, such as Hungary, Czech Republic and Slovenia. According to the draft law, the enforcement date of the law is July 1, 2001.
Moody's upgraded Optiva's deposit rating from Ba2/Not Prime to Baa1/P-2 level, and assigned a positive outlook to its financial strength rating E. The ratings were changed after the announcement about sale of majority holding in Optiva Pank to Sampo-Leonia Group. Moody's also upgraded to Baa1/P-2 fromBaa2/P-3 the deposit ratings of Eesti Ühispank. A positive outlook was assigned to the D financial strength rating. The rating action follows the announcement that, as a result of its offer to purchase the outstanding shares in Eesti Ühispank, Sweden's SEB (rated A2/C/P-1), currently holds just over 95% in the bank. Vilnius
The execution of Skandinaviska Enskilda Banken (SEB) tender offer to buy up the remaining shares of Vilniaus Bankas was the most significant event of the month. SEB acquired 6,997,156 (out of 7,318,103) shares of Vilniaus Bankas for LTL 349.86 million (EUR 102 million). Therefore, upon execution of the tender offer the Swedish bank owns 97.9 per cent of shares in Vilniaus Bankas. This turnover considerably improved statistical results of the NSEL for the current year. During eleven months, the NSEL's share turnover accounted for LTL 783.8 million (EUR 221.27 million).
Pursuant to the Law on the Reorganisation of the Public Company Lietuvos Dujos adopted by the Parliament of the Republic of Lithuania on 17 October 2000, and to the Company Law of the Republic of Lithuania it was decided to reorganise AB Lietuvos Dujos in accordance with the company division method, i.e. by separating certain portions of the assets, rights, and liabilities from AB Lietuvos Dujos, which shall continue its activities, and setting up the following new companies on the basis of the above assets, rights, and liabilities: public company Suskystintos Dujos and public company Dujiniai Árengimai. It was also decided to annul the special purpose status. The general meeting of shareholders, held on 3 November 2000, approved the reorganisation project.
AS A Le Coq, the major shareholder of Ragutis, acquired more than 50% of Ragutis shares and announced a tender offer to buy up the remaining shares at LTL 5.00 per share. Pursuant to laws of the Republic of Lithuania, this shareholder was obliged to announce a tender offer at a price which is not lower than the weighted average price of 12 months. On 24 November 2000, AS A Le Coq purchased 400 shares by block transaction at LTL 5.00 per share, thus, the price of the tender offer is also LTL 5.00. When purchasing 49.9% of Ragutis shares AS A Le Coq paid over LTL 20.00 per share but that was more than 12 months ago.
