Ljubljana Stock Exchange Monthly Report December 1999

The total turnover of securities on the Exchange amounted to SIT 44.3 billion in December after the amount of SIT21.4 billion in November and was the highest monthly turnover this year. The total turnover in December 1998 was SIT 35.9 billion. The total turnover on the Exchange in the twelve months of this year amounted to SIT 265.7 billion and was 53% higher than the figure in the previous year, which was SIT 173.4 billion. In December 218 block trades (102 in November and 138 in December 1998) were reported by the Exchange members, with a total value of SIT 31.5 billion (SIT 10.7 billion in November 1999 and SIT 25.7 billion in December 1998 - representing 72% of the total turnover of that month). The value of block trades represented as much as 71% of the total turnover in December 1999 (vs. 50% in November) and was much higher than the 1999 average of 49.1%. (the average in 1998 was 37%). In the whole year 1999 the members reported 1072 block trades, with a total value of SIT 130.5 billion. In December 1999, the share of turnover of different types of securities in the total turnover, on all three segments of the Ljubljana Stock Exchange, was as follows: shares accounted for 67.46% (in November 58.23% and in December 1998 65%), bonds reached 9.62% (vs. 11.74% in November and 23.8% a year ago), short-term securities 1.99% (vs. 5.6% in November and 2.9% a year ago) and shares of investment funds made up 19.55% of the total turnover (vs. 20.53% in November and 8.2% in December 1998). Turnover with pension coupons accounted for 1.36% or SIT 606 million (vs. 3.9% one month ago). The most traded shares on the official market of the Exchange were Krka, Merkur, Kovinotehna, Mercator and Lek. The most traded bonds were bonds of the Republic of Slovenia 10th, 9th, 12th and 4th issue and bonds of SKB bank 3rd issue. The average number of transactions per day in December 1999 was 2,279 (vs.2,266 in November), and was much higher than the 943 transactions per day average of 1998. The average of the year 1999 was 1,760 transactions. The average turnover per day in December was SIT 2.01 billion (vs. SIT 1.02 billion in November). The daily average of twelve months of 1999 was SIT 1.0 billion. In December 1999, ten most active Exchange members concluded 62.54% of the total turnover (vs. 62.08% in November). The most active members were GORENJSKA BPD (12.52%), Publikum (11.52%), Probanka (6.77%), MARIBORSKA BPH (5.36%) and Medvešek-Pušnik (5.28%). The negative trend of the index SBI from November continued for the fourth consecutive month in December 1999 and declined further by 0.63%, from 1,817.66 points to 1,806.26 points at the end of the month (and the year 1999). The value of the index SBI one-year ago was 1,705.77 points, which gave a 5.889% yield of the index in the year 1999. From 30 November 1999 until 30 December the prices of twelve shares of those listed on the official market decreased, out of those: Kovinotehna (common shares by 21.04% and preferred shares by 13.54%), NIKA by 7.48%, Petrol by 4.51%, Merkur by 2.83 and Radenska by 2.68%. The prices of the two pharmaceutical firms Lek (A) and Krka decreased by 1.07 % and 1.01% respectively. The prices of eighteen shares increased: SKB banka by 18.76%, Zdravilišce Moravske Toplice by 17.63%, Tehnounion by 10.19%, BTC by by 6.82% and Terme Catez by 6.31%. On 31 December 1999 the value of eighteen shares of those listed on the official market outperformed those on 31 December 1998 - out of that Mercator by 85.38%, Kovinotehna (preferred and common) by 56.14% and 39.53%, Salus by 52.98%, Dolenjska banka by 47.24% and BTC by 34.25%, while the value of ten shares fell - among them: NIKA by 47.05%, Tehnounion by 36.80%, Gradbeno podjetje Grosuplje by 17.19%, Radenska by 12.75% and Petrol by 10.51%. Two issues (preferred shares of Lek and shares of Delo) were not listed on the Exchange at the end of 1998. The GDRs of SKB bank (SKBRq.L) reached their highest price this year on 15 March at USD 15.75, after which their price started to decline and was USD 11.25 by the end of November. In December the price remained unchanged. The price of GDRs of BTC (BTCDq.L) was USD 7.625 on the same day, and USD 7.525 one month ago. Its price was USD 5.425 one year ago. In December 1999 the value of the bond index BIO increased from 107.11 to 108.50 points or 1.28%. One year ago its value was 108.22 points. After the decrease of the index SBI in November by 1.49% its decline continued also in December and it lost 0.63% by the end of December 1999 reaching the value of 1,806.26 points. In the first half of December the value of SBI oscillated between 1,820.14 points (1 December, which was also the highest value of the month) and 1,802.58 points. On 15 December it slipped bellow the level of 1,800 points and reached the lowest point of the month on 28 December at the value of 1,779.04. On the last trading day of the year - 30 December, SBI recovered just to finish the year above the 1,800 level at 1,806.26 points. The spread between the minimum and the maximum value of the index narrowed further form November - 44points to only 41 points, which was the narrowest monthly spread in the year 1999. The movement of PIX followed its own paths in December - depending again on the decisions of the government regarding the sale of state owned companies to the authorised investment funds. The auction is scheduled for 14 February 2000. Following the suggested pattern of behaviour the index declined in value from 1 December (1,433.96 points) until 17 December (1,408.40 points) by 1.79%. After the announcement of the above-mentioned auction PIX increased to its maximum value on 28 December - 1,495.48 points, ending the year at 1,483.50 points. The spread between the minimum and the maximum value of the was 87 points index in December vs. 107 points in November. The most important driving forces behind the price changes were: (1) The government's announcement of the auction of state owned companies influenced mainly the trading and price trend of shares of the authorised investment funds (PIDs). After the completion of the first step of the pension reform - the "exchange" of PIDs shares for pension coupons, the second part of the operation started - the exchange of the coupons for life insurance policies. (2) Ongoing process of new listing of shares on the free market of the Exchange, which is a result of the Dematerialisation Act - five new (smaller) companies were included in trading on the free market in December 1099. (3) The net outflow of foreign investments in Slovenia has contributed to the negative price trend in the stock market for the fourth month - particularly for the pharmaceuticals. (4) Window dressing of balance sheets at the end of the calendar and fiscal year. The total market capitalisation of securities traded on the Exchange (excluding shares of investment companies) on 31 December 1999, amounted to SIT 794.3 billion. It increased by 1.92% from its level of SIT 779.3 billion on 30 November. Compared to 31 December 1998 (SIT 628.1 billion), the market capitalisation of all securities on the Exchange increased by 26.46%. Market capitalisation of listed shares increased in one year's time from SIT 396.4 billion to SIT 432.7 billion or by 9%. The capitalisation of the free market increased in the same period by 55%. At the end of the year 1999, the market capitalisation of all shares traded on the Exchange (official and free markets) (SIT 566.5 billion) made up 17.43% (vs. 17.11% in November and 16.62% of GDP one year ago) of GDP in the year 1998 - SIT 3,249 billion (USD 19.6 billion) at current prices. (Source: UMAR at the Ministry of Economic Relations and Development). Market capitalisation of investment funds increased from January 1998 (when the first fund was traded) until 29 October 1999 (forty-six funds) from SIT 1.9 billion to SIT 125.4 billion SIT. It decreased by 4.15% in December.