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In October Latvian capital market turnover amounted to EUR 73.33 million. Equity trading volume was EUR 9.88 million, as usual, surpassed by trading with debt securities (EUR 63.45 million). Equity market capitalisation at the end of the month stood at LVL 339.30 million (EUR 645.73 million), which is a 5.52% increase over the end of September. Dow Jones RSE appreciated to the previous month by 2.68% and reached its 52 week high of 138.31 on October 31, while RICI index slightly depreciated (by 1.53%). Unibanka, Latvijas Gaze and Ventspils nafta were the top three traded companies (turnover volumes 1.54, 1.28 and 1.24 million LVL respectively). Latvijas Gaze and Unibanka also experienced a notable price gains over the previous month™s close figure (11.18% and 6.84% respectively).
In secondary debt market Government 5 year bond (maturity on 24.03.2005) remained an absolute leader with traded volume of LVL 21.72 million. Government 2 year bond and the recently listed Nordic Investment Bank bond were traded quite actively as well (turnover LVL 3.05 and 3.28 million respectively).
Skandinaviska Enskilda Banken has extended the term for buy- back of Latvijas Unibanka shares till November 13, 2000, and has increased the price to LVL 2.05.
On October 3-4 Securities Market Commission of Latvia and Riga Stock Exchange hosted a OECD workshop on capital markets development in the Baltic Region. The overall aim of the workshop was the dissemination of the shared expertise and knowledge of trends in securities markets, with the view of consolidation of the European Capital Market. Major practical and technical implications for the Baltic securities markets were identified and analysed. The results of the workshop will be included in preparation of a capital market report for the Baltic countries. The Baltic region was represented by market participants from Latvia, Lithuania, Estonia, Norway, Denmark, Finland, Sweden.
On October 19 the Riga Stock Exchange had its Open-house Event, already for the fifth year in row. The attendance is estimated to be 2,000-3,000 people.
Uldis Cerps, President of the Riga Stock Exchange, was appointed by the Parliament for the position of Chairman of the Supervisory Board of Consolidated Capital markets supervisory body. The new structure has to be fully operational from July 1, 2001.
Tallinn
Estonia's GDP in the first half of 2000 totaled EEK 40.7 billion (EUR 2.6 bn) in current prices, an annual increase of 6.4 percent, the Statistics Office said. The latest estimate by the Central Bank of Estonia said the country's GDP this year is likely to grow 5.5 percent from 1999, compared to -1.1% percent drop in the previous year.
The risk of investment into Estonia has substantially declined over the past year, and it has the second smallest investment risk among the former East Bloc countries after the Czech Republic, the recent Economist Intelligence Unit (EIU) said. On a 100-point scale, the risk of investment into Estonia has declined by 12 points to 32 points. Estonia shares positions 9 to 11 with the United Arab Emirates and the Czech Republic.
On October 20 - 21 2000 Tallinn Stock Exchange, together with Reuters and Estonia's main business daily Äripäev, held the first major capital and money markets fair in Estonia, MoneyCompass 2000. The fair gathered all major participants in the Estonian financial market, also the stock exchange issuers and media. The fair was accompanied with seminars and lectures given by well-known investment specialists and experts in the field. MoneyCompass 2000 had more than 4,000 visitors, thus exceeding the organizers' expectations.
Tallinn Stock Exchange decided to delist the shares of Reval Hotelligrupi AS from the secondary list from November 1. Reval HG applied for delisting after take-over by Linstow International Ltd., a subsidiary of the leading Scandinavian and Baltic real estate developer Linstow.
Vilnius
In October, one of the largest growths of the market price of a share throughout the entire history of the NSEL was observed when Vilniaus Baldø Kombinatas surged by 242.11%, from LTL 0.76 to LTL 2.60. After the listing reform, which was carried out on 1 June 1998, the furniture company left from the Current Trading List (last market price equalled LTL 0.50). As the economic and financial results of Vilniaus Baldø Kombinatas improved significantly, on 5 June 2000 the company re-entered the Current Trading List and the first quotation stood at LTL 0.70.
