National Stock Exchange Of Lithuania Monthly Bulletin - November

After a period of active trading on the NSEL in September and October, November was a much quieter month. Investors were passively watching the news and changes on the market and seemingly lived in the mood of anticipation for the appearance of shares obtained by residents of the country as a compensation for the property bought out by the state. This attitude was not stirred by the privatisation of two alcohol producers (Stumbras AB and Vilniaus Degtinë AB), announcement of the winner in the tender for privatisation of Vakarø Skirstomieji Tinklai AB or suspension of the privatisation of Rytø Skirstomieji Tinklai AB. Higher results of share trading on the central market were often caused by 1 or 2 transactions in shares of a few companies, and there were only seven sessions with the turnover exceeding LTL 1 million. In November, the number of share trades was four times lower than that in October, yet the average value per transaction rose from LTL 6 to7 thousand. The share turnover on the central market was by 14% and that of negotiated deals by 12% lower than in October. Other types of share transactions accounted for the increase of 35% compared to the previous month, but that made up only 2% of the total share turnover. November has confirmed the main trend of the NSEL trading this year, namely, the growing portion of the share turnover on the central market - during the period under review it accounted for 67%. The average turnover of T-bills per session underwent hardly any changes, amounting to LTL 5.6 million.

The leading position remained with shares of Lietuvos Telekomas AB (26% in the total share turnover). The most actively traded shares on the central market were those of Maþeikiø Nafta AB, Vakarø Skirstomieji Tinklai AB, Lietuvos Dujos AB, Rokiðkio Sûris AB. Prices of 21 shares went up, and those of 13 dropped.

It is notable that despite a relatively passive trading in securities, the total level of share prices did not fall, which is a sign of confidence in the stock market. All share indices, those of listed companies including, as well as total capitalisation of the NSEL added 2 % in weight; the increase in indices during the 54 weeks was significant - the value of LITIN grew by 59%, that of LITIN-10 went up by 79%, and LITIN-G soared by 82%.

Total turnover of the NSEL as well as turnover of debt securities and shares was almost twice as high as last November, yet among the lowest this year. Total securities turnover accounted for LTL 140 million, that of shares was LTL 29 million and that of T-bills equalled LTL 111 million.

From the beginning of the year, the total turnover of securities amounted to LTL 1.8 billion, and was 7% up on the corresponding period in 2002. Share turnover on the central market was twice as high as last year, but that of negotiated deals and other types of transactions accounted for just a half of it. Therefore, total share turnover was 8% lower than that of the previous year.

From the beginning of the year, turnover of debt securities augmented by 15%. On 3 December 2003, a general shareholders' meeting of the NSEL AB was held. After the NSEL shares had been taken over by the State Property Fund of the Republic of Lithuania from the Ministry of Finance of the Republic of Lithuania, the meeting removed members of the Supervisory Board of the NSEL and elected a new Supervisory Board of five persons, who will start work after registration of amendments to the Articles of Association.

On 4 December this year, the Privatisation Commission agreed to sell in one block by way of a public tender shares of two public companies, the Central Securities Depository of Lithuania AB and the National Stock Exchange of Lithuania AB, held by the state by right of ownership together with shares held by private owners. The initial price for the 32 % block of shares of the Central Securities Depository of Lithuania AB is LTL 4.1 million. The initial price for the 54.47 % block of shares of the National Stock Exchange of Lithuania AB is LTL 3.35 million. This block contains 44.31 % of state owned shares and 10.16 % of shares in private hands.