National Stock Exchange Of Lithuania Monthly Bulletin – May 2004

In May, the monthly turnover at the Exchange amounted to LTL 158m, exceeding the average monthly result of the previous year, but falling behind the trading values of the current year. Investors became more selective; retail investors dominated on the market but they failed to keep share prices up. Lack of positive news in the market forced share demand down faster than supply, resulting in the share price correction. The number of winning and losing shares was the same, 20. A significant decrease in the share price of Mazeikiu Nafta and Lietuvos Telekomas, however, resulted in reduced capitalisation of listed securities to LTL 19.8 billion, while values of the indices dropped by almost 5 percent each.

Share turnover of the month amounted to LTL 55 million. Three times the average turnover of the trading session was lower than that in the previous month. In May, the share turnover per trading session on the central market fell below LTL 1 million only three times as well, but it was only during two trading sessions that it exceeded LTL 2 million. Shares of Vilniaus Vingis and Lietuvos Telekomas won the leading positions back. Trading in shares of just five companies constituted more than a half of the aggregate turnover. The turnover of debt securities slightly exceeded the April value reaching LTL 103 million.

From the beginning of the year, the aggregate securities turnover at the NSEL accounted for LTL 1396m, out of which LTL 711m fell to debt securities and LTL 685m to shares. The latter exceeded last year’s total share turnover by LTL 91m.

On 28 May, OMHEX, Northern Europe’s largest securities market operator, and the Lithuanian State Property Fund (SPF) closed the transaction, whereby OMHEX purchased 44.3 percent of the shares of the National Stock Exchange of Lithuania (NSEL) and 32 percent of the shares of the Central Securities Depository of Lithuania (CSDL).

OMHEX has already transferred LTL 5.01m for the NSEL shares and LTL 5.81m for the CSDL shares into the account of SPF. OMHEX ownership in the NSEL currently amounts to 81 percent. A mandatory tender offer to the minority shareholders of the NSEL will be launched in June this year, as OMHEX intends to acquire up to 100 percent of the NSEL shares.

On 28 May, a meeting of the NSEL Supervisory Board took place, which removed the Board of the Exchange from office and elected the Board of a new composition. Dalia Jasulaityte was elected Chairwoman of the Board; Vidmantas Drobelis was elected Deputy Chairman of the Board.