In September total Latvian capital market trading volume reached EUR 39.26 million (LVL 22.38 million). Equity market trading amounted EUR 15 million (LVL 8.5 million), and, though, the volume traded was smaller than in August, it was still well above the average trading level of this year in RSE. Similarly to previous months, major stake (more than 80%) of equity market turnover consisted of Latvijas Gaze share trading. Trading turnover in Debt market was EUR 24.26 (LVL 13.83).
Total nominal value of debt securities reached EUR 534.5 (LVL 304.66) million, while equity market capitalization as of September 30 was EUR 560 (LVL 319.24) million in comparison with EUR 734.7 million (LVL 416.39 million) in August. If compared to the end value of the previous month, RICI index dropped by 6.08% or 9.41 point, while Dow Jones RSE fell even more by 24.28% or 49.15. Both the fall in capitalization and indexes should be explained by rather sharp decrease of Latvijas Gaze share price that declined from EUR 12.53 (LVL 7.14) to EUR 8.25 (LVL 4.70) in September. The price fall is the result of diminution of interest of Latvijas Gaze shares after the auctions of state owned stocks in July and August, and, what is more, the free float of shares has diminished to about one per cent.
The major price increases in September were observed for Mangalu KRR ñ 30% or LVL 0.03 and Liepajas ML ñ 28.57% or LVL 0.04, but from the Official list equity securities price rose for Ventspils nafta shares ñ 2.86% or LVL 0.02 and Balta ñ 1.49% or LVL 0.03. According to the Central Statistical Bureau of Latvia, compared with August, producer price index in the Latvian industry in September declined by 0.2%. Inflation in September was 0.6% over August (CPI rise in August was 0.7%), but unemployment rate as of October 1 has diminished to 7.6%. Bureau also reports pleasant 8.8% semi-annual increase of GDP in Latvia.
Tallinn
Share prices fell in September following the downward trend in the whole world intensified by the terrorist attacks in the U.S. TALSE index fell 3.85 % to 122.72 in September while the market turnover was up by two times to EUR 24 million.
The parliament passed the Pension Act, which will launch the second pillar of the pension system in Estonia. TSE considers it a significant legislative step for the long-term development of Estonian economy and capital markets. People will be able to join the second pillar and choose obligatory pension fund starting from March 1, 2002. Payment collections to the second pillar funds will start on July 1, 2002.
Hansabank Groupís strategic shareholder Swedbank (Fˆrenings Sparbanken) and Eesti ‹hispankís strategic owner SEB (Skandinaviska Enskilda Banken) called off the merger negotiations and would continue their operations individually. Hansabank announced that it would continue to follow its own strategy after the original merger announcement in February of this year and the decision to discontinue with the merger in Sweden will have no significant impact on the operations of Hansabank Group.
TSE started to publish shareholder lists listed companies via Internet in order to add transparency and reliability to the securities market.
Foreign direct investments into Estonia during H1 2001 amounted to $265.96 million, Estonian Investment Agency reported. It is compared to $393 million for the whole 2000. In terms of direct investment per capita, Estonia ranked second in 2000 after the Czech Republic among Central and Eastern European countries with investments of $286 per capita.
Vilnius
In September, trading in shares at the Stock Exchange was much more active than in the previous two months of the third quarter. Shares contributed 77% to the total turnover, and the total share turnover of September of LTL 129.3m was the record high turnover of this year and all-time high September turnover. Trading volume of debt securities of LTL 39m was one of the smallest this year. Therefore, the total turnover (LTL 168m) was lower than that of March and May.
In September, KlaipÎdos Juru Kroviniu Kompanija and SnaigÎ took the position of market leaders. Share turnovers of the two companies were LTL 80.8m and LTL 36.6m respectively. Securities turnover since the beginning of the year accounted for LTL 1,247m, including share turnover of LTL 463m and turnover of debt securities of LTL 784m.
On 1 October, AB Kauno Tiltai (construction of bridges, road building) was admitted to the Current Trading List of the NSEL. The total nominal value of the issue is LTL 14,033,500.
At the beginning of October, the Government of the Republic of Lithuania resolved to sell equal 34% stakes to a Western strategic investor of AB Lietuvos Dujos and a Russian gas supplier, which will be able to form a consortium with its partners in Lithuania. According to the plan, the Government would retain 24% of shares. On 8 October, an agreement was signed between Baltic Beverages Holding AB and Bryggerigruppen A/S regarding sales of an 86.6% block of AB Kalnapilis shares. The total value of the share block amounts to LTL 135.1m.
