National Stock Exchange Of Lithuania Monthly Bulletin - April 2003

Over the first quarter of 2003, GDP grew by 9.1%, which led the Ministry of Finance to increasing the forecasted growth of the real GDP of the current year from 4.9% to 6.1% and reducing the forecasted inflation from 2.5% to 0.1%. According to analysts, Lithuania's robust economic growth, preparation for the EU accession, more optimistic corporate indices, compensations for real property subject to restitution in form of shares of four companies, and the anticipated privatisation of major state companies are likely to set in 2003 the securities market growth as an established long-term trend. This trend started developing back in March and grew more widespread in April. The market received more impetus from foreign investors' interest in the securities of Lithuanian companies rather than from corporate activity results.

In April, debt securities turnover was by a quarter lower than in March, due to which the total securities turnover of the month under review was 9% lower than in March with the record level turnover. Analysis of other transactions with shares, the turnover of which jumped by one third in a month, shows that 9% of transactions were privatisation-related, while the major portion (LTL 33 million) were block trades. The latter were not very widespread - only six companies saw their shares turnover exceed LTL 1 million, with the shares of Klaipedos Juru Kroviniu Kompanija AB dominating (68%) the group.

Investors were actively involved in the CM share trade, where the turnover has been growing since the beginning of the year and in April alone went from LTL 11.6 million to LTL 23.87 million. The amount of transactions on the CM jumped by a quarter and the turnover of 12 trading sessions exceeded LTL 1 million. A notable fact is that the turnover of shares on the CM over the current four months accounts for 42% of the share turnover on the CM of the entire 2002, with the portion of share turnover in the total monthly securities turnover rising from 22% to 36%.

The increased CM vitality caused movements in share prices - share prices of only 12 companies fell during the reviewed month. HC Invalda recorded the biggest rise of share price (83%), the share prices of bank Snoras, Grigiskes, and Vilniaus Degtine went up by over 40%. Welcome news for market participants were the positive results of Mazeikiu Nafta AB activity in the 1st quarter of 2003. The company's share price jumped by a third and the capitalisation took the top position among the listed companies. Following the trend of the current two months, the share indices were on the increase: LITIN grew by 5%, LITIN-G by 9%, and LITIN-10 by 7%.

About 30 investors acquired sets of public tender documents of four alcohol companies in privatisation. 16 of them filed applications with the State Property Fund, which are currently scrutinised. The privatisation of those companies is to be completed by 1 July, i.e. upon the abandonment of the state monopoly in alcohol production.

A General Meeting of the NSEL held on 30 April approved the Board's report and the audit conclusions, as well as resolved to change the name of the Stock Exchange to Vilnius Stock Exchange.