National Stock Exchange Of Lithuania Monthly Bulletin - July 2003

In July, the securities market was not affected by summertime spirit. A 12.5% increase in share demand proved that there are enough traders in securities. The interest of traders was encouraged by good semi-annual results announced by companies. One of the significant stock events to mention is a LTL 74 million profit earned by AB Mazeikiu Nafta during six months of the current year. A notice from E.ON Energie AG (Germany) about the exchange of share blocks of Lietuvos Elektrine and Lietuvos Energija held by the company into a 20.28% share block of AB Rytu Skirstomieji Tinklai, and intentions of both electricity distribution network companies to increase their authorised capitals out of additional contributions also stand out among other stock events.

Active trading in shares slightly diverted attention of market participants from trading in Government securities. In July, the number of transactions concluded in the Government securities was by a third smaller and their turnover was twice lower than that in June. Therefore, the share of these securities in the total turnover lowered from 79% (in June) to 69,5%, and the total securities turnover was relatively small standing at LTL 150 million.

In July, the number of transactions in shares increased by more than 12%, and the turnovers both on the central market and by block and other transactions exceeded those recorded in June. The total share turnover, reaching LTL 60.6 million, was the largest not only this year but also among turnovers generated in July over the last four years. This came as a result of the dynamics of share prices and positive changes thereof. During the month under review, share prices of only 8 companies decreased. After the holding company Invalda announced its preliminary profit for six months of 2003, the company's share price surged by 61.9%, and from the beginning of this year it increased by 6 times. Share prices of AB Lietuvos Energija and AB Lietuvos Dujos went up by 38.9% and 32% respectively, and that of AB Snaige moved up by another 29%. Six companies generated over LTL 1.5 million on the central market this month, and the total turnovers of 4 companies exceeded LTL 5 million.

Activeness on the share market created conditions for the increase of capitalisation of listed shares by LTL 1 billion and for further growth of equity indices. In July, the weight of the index LITIN-10, in the basket of which three companies were replaced as of 1 July, added another 14%, and on 30 July it climbed over the margin of 2000 points. The LITIN-G index demonstrated a similar growth, and at the end of the month it stood at LTL 1559.21. The last time when the index had reached this level was recorded in June 1998. The Official List index LITIN grew by 6.9%. It could be anticipated that the activity of trading in shares would remain at the same level in August as well, which is proved by trading results during the first trading sessions of this month.

On 1 August 2003, the second stage of compensation for citizens for the existing real property in the state owned shares begins. Thus, 9.03% of AB Lietuvos Telekomas, 2.60% of AB Vakaru Skirstomieji Tinklai, and 2.60% of Rytu Skirstomieji Tinklai shares have been allocated for this purpose.