In the third quarter of 2002, the total turnover of the Stock Exchange reached LTL 621 million. This is the largest quarterly turnover this year and it is by 66% larger than the securities turnover of the corresponding period in 2001. Besides, it is the third largest securities turnover in the history of the NSEL. The portion of share turnover in the total turnover equalled that of the previous year and accounted for 54% or LTL 333 million. As much as 80% of the total share turnover fell to Maþeikiø Nafta AB. On 19 September, Yukos Finance B.V. acquired a 26.85% block of shares of Maþeikiø Nafta AB from Williams International Company through a block transaction worth LTL 226 million. Thus, the Russian company increased its stake in Maþeikiai refinery to 53.7% and took over its management. Thanks to this transaction, share turnover of the period under review was the largest among quarterly turnovers this year as well as one of the largest in the trading history of the NSEL.
Differently from the second quarter marking the fall of share demand, in the third quarter of 2002 share demand increased by one forth, thus, the share supply-demand ratio declined from 5.1 to 2.5. Nevertheless, trading in shares was not very active. Although the number of transactions concluded in shares increased by one third, as compared to the corresponding period in 2001, it was by 30% lower than the number of transactions concluded in the second quarter of 2002. Securities turnover on the central market was LTL 43.9 million (c.f. LTL 17 million in the third quarter of 2001) and equalled that of the second quarter. However, central market share turnover has a tendency to lower every quarter (c.f. Q1 ΠLTL 49.8 million; Q2 ΠLTL 30.1 million, and Q3 Π19.1 million). Accordingly, the share of central market turnover of the Government securities was increasing (c.f. Q1 Π25.8%, Q2 Π31.6%, and Q3 Π56.3%). The consequences of the growth of share demand are evident in changes of share prices, i.e. share prices of 29 Official and Current List companies increased. Thus, values of LITIN-G, index of all listed shares, and LITIN-10, index of ten most actively traded shares, improved by 4% and 8.5%, respectively. Probably, values of these indices, and of the Official List index LITIN in particular, could be higher, if their growth was not limited by the falling price of Lietuvos Telekomas AB. During the quarter, the LITIN index lost 10.7% of its weight, and the share price of the telecommunications company declined by 25.7%, yet the turnover of LTL 3.9 million was the largest on the central market. In addition to Lietuvos Telekomas AB, investors were interested in shares of producers of alcoholic beverages, electricity and shipping companies which are currently undergoing preparations for privatisation as well as in electronics companies which have been operating successfully this year. This was particularly evident in September, when the demand for shares of 30 issues traded on the central market exceeded the supply. Central market trading in the Government securities reached almost LTL 25 million and this quarter it outdid central market share turnover (c.f. in July it accounted for 78% of the central market turnover).
The total NSEL turnover of nine months reached LTL 145.4 million, which is by 16% more than nine-month turnover in 2001, and accounted for 79% of the annual turnover of the previous year. Share turnover equalled LTL 524 million, and trading in the Government securities stood at LTL 927 million (accounting for 62% and 92% of respective turnovers in 2001). Securities turnover on the central market also increased. The total CM turnover was by 37% higher than that during the corresponding period in 2001 and accounted for 94% of the annual CM turnover of 2001. Central market turnover showed a 27% increase over the three Πquarter turnover of 2001 and comprised 89% of the annual CM share turnover of the previous year. The trading volume of block transactions increased by 10%, yet, accounted for as little as 58% of the annual turnover of block transactions in shares in 2001. Thus, results of the third quarter did not alter the general tendencies at the Exchange. In addition, block transactions in shares are becoming considerably smaller. The number of block transactions concluded since the beginning of the year was 1.8 times larger than that of the corresponding period last year, although the turnover increased just by LTL 40.5 million. Since the beginning of the year, central market share turnover and trading volumes of the Government securities have demonstrated the most rapid growth.
It is very likely that the decision of the Government of the Republic of Lithuania to give shares of public companies Lietvos Telekomas (10.03% of the authorised capital), Lietuvos Jûrø Laivininkystë (6.58%), Rytø Skirstomieji Tinklai AB (5%), and Vakarø Skirstomieji Tinklai (5%) as a compensation for existing real property, which will be followed by a lot of free float coming to the market, will intensify trading at the Exchange in the last quarter of the year. Besides, the approaching end of the year forces investors to consider and review the composition of their investment portfolios.
