National Stock Exchange Of Lithuania Monthly Report

In June investors were curious to see whether their forecasts would prove true hoping that trading on the stock exchange would be active as expected. This made June different from the summer months of the past year and helped to preserve the trading trends of the current year's second quarter. Investors exhibited most interest in alcohol companies, privatization tenders of which were closed in June, energy companies undergoing preparation for privatization, Lietuvos Dujos AB, in which the Russian concern Gazprom intends to acquire a holding and has submitted to the Government of the Republic of Lithuanian an updated offer. Market participants were also expecting that furniture and paper companies, electronics companies, Lietuvos Telekomas AB, Maþeikiø Nafta AB, Klaipëdos Nafta AB, and other companies would announce good half-yearly results.

Growing share prices evidenced that the market was operating actively. The price of shares of only 11 listed companies went down during the month under review, while as many as 20 companies saw their share prices jump by over 10%. The rise of prices produced not only an 11% increase of the listed stock capitalization but also prompted upward movements of the indices: LITIN index went up by 12%, LITIN-G index grew by 11%, and LITIN-10 rose by 7.5%. From the beginning of the year, share prices of 20 issuers grew 1.5 times, while prices of 10 issuers' shares more than doubled. The indices also grew remarkably: by 34%, 50%, and 33%, accordingly.

By decision of the NSEL Board of 23 June 2003, as of 1 July 2003 securities of public companies Ûkio Bankas, Pieno Þvaigþdës, and Rokiðkio Sûris entered in LITIN-10 are replaced by shares of Rytø Skirstomieji Tinklai AB, Vakarø Skirstomieji Tinklai AB, and Klaipëdos Nafta AB. On 1 July 2003, the comparative weight of Snaigë AB's shares in the LITIN-10 was cut down to 20% and the resulting surplus was distributed among other shares proportionally.

The total securities turnover in June was the highest this year, amounting to LTL 237 m. The same is true about the T-bills turnover, which totaled LTL 188 m, accounting for 79% of the overall turnover of the month. A total sum of LTL 49 m was transferred in share trading. Though it is somewhat less than during the previous months of this quarter still the good news is that for a second consecutive month a greater share of stock turnover is produced via central market trading. Securities of Lietuvos Dujos AB, Lietuvos Telekomas AB, and Sanitas AB were traded on the CM for a total exceeding LTL 2 m and a fractionally smaller sum was processed in trading of the securities of Vakarø Skirstomieji Tinklai AB, Rytø Skirstomieji Tinklai AB, Klaipëdos Nafta AB, and Vilniaus Degtinë AB.

The securities turnover of the second quarter was 45% higher than that of the first quarter, amounting to LTL 593 m. The share turnover (LTL 164 m) doubled compared with the data of the first quarter and constituted 28% of the total turnover.