In January Latvian capital market turnover was EUR 36.27 million. Equity trading volume was EUR 1.5 million, while trading with debt securities amounted to EUR 34.77 million. Equity market capitalisation at the end of the month stood at LVL 370.97 million (EUR 653.22 million); total value of debt securities was EUR 303.46 million. Dow Jones RSE index appreciated by 1.35% since end of December, while RICI lost 3.87% of its end of December closing value.
Some indicative macroeconomic indicators for 2000 have been released by Ministry of Finance: public budget fiscal deficit is 2.75% of GDP - better than the expected 3.2%. Inflation has been as low as 1.8% in 2000 (year-on-year; 3.2% in 1999). Current account deficit, according to Bank of Latvia, in quarter 3 of 2000 has reduced to 5.8% of GDP (7% of GDP in quarter 2 of 2000). It should also be noted that unemployment rate at the end of 2000 was 7.8%, which is a major improvement over 1999 (9.1%).
There have been certain shifts between the RSE lists: Rezeknes PKK has been transferred from the Official List to Second List, and Naruta has been transferred from Second List to Free List. As a result, the RSE lists altogether 64 companies (7 on the Official List, 13 on the Second List and 44 on the Free List). Changes have taken place in the RSE membership structure as well: the RSE will have 15 active trading members starting with January 2001.
The Riga Stock Exchange operated at a profit in 2000. The accounts have been prepared according to International Accounting Standards and were audited by Deloitte&Touche. The Annual Report still has to be approved by shareholders' general meeting, scheduled for March 8, 2001.
Tallinn
Tallinn Stock Exchange started the year 2001 with increased activity - trading turnover was up 56% to EEK 390 million (EUR 25 mln) on monthly basis while the TALSE index added 1.37% to end January at 140.14.
Main list companies Norma and Merko were the first to announce 2000 corporate results. Both companies showed better earnings amid general economic growth in Estonia as preliminary net sales of construction firm Merko were up 93% while consolidated net sales of seat belt producer Norma increased by 23%. Due to restructured fee structure of TSE, major stock exchange member firms cut substantially their trading fees as well as securities account opening fees for investors starting from February. Transactions made via internet banks were lowered the most where the fees decreased by up to five times. Detailed table of transaction fees charged by different TSE member firms is available on the Internet web site of TSE.
Estonia Q3 2000 GDP growth was 7% according to the data released by the statistics office. Strong exports as well as domestic demand boosted the economy, showing an annual increase of 42% and 8% respectively. By economic activities, growth in manufacturing was 16% and in transit sector 10%. The third largest economic sector or wholesale and retail grew by 5%. Annual growth in consumer price index was 4% in 2000 compared to 3.3% a year ago. Analysts expect the 2000 economic growth at 6…6.6 %. For 2001, the central bank of Estonia has forecasted a 5 to 6% growth and a rate of inflation at 4.2…5.3%.
Vilnius
In January, the greater part of the Stock Exchange turnover fell to debt securities, the turnover of which accounted for LTL 123 million (EUR 33.5 million). This makes the largest turnover of January of all previous years and also the largest turnover of Government securities since April 1999. The total share turnover grew from LTL 25 million (EUR 6.7 million) in December to LTL 41 million (EUR 11.2 million) in January. The most delightful thing, however, is more intensive trading in shares on the central market, the turnover of which stood at LTL 18.9 million (EUR 5.2 million). The average share turnover per session on the central market lifted to LTL 0.86 million (EUR 0.24 million), being the largest turnover on the central market since March 1999. The growth of share turnover was followed by the continuing rise of share prices. The index of the ten most liquid shares LITIN-10 improved by even 8.41%, to 1232.58p. The index has climbed up by 30.57% as compared to the lowest value of 943.98p.of the previous year which was reached on 22 August.
Certain amendmends became effective as of 1 February 2001. Shares of Vilniaus Bankas were shifted from the Official Trading List to the group of Unlisted securities to which central market procedures are applied. Due to the amendments to the Trading Rules of the Stock Exchange, the following changes occurred: calculation of the Current List index LITIN-A is ceased, the closing price instead of the weighted average price is deemed the official quote at the Stock Exchange, the exact opening time of each trading session is to be determined according to the random time generated by the computer, and the time interval of the possible opening is from 9.25 a.m. until 9.30 a.m., besides, the closed auction at the opening of the trading session is changed into the open one, i.e. the brokers are able to see the placed orders. Moreover, it is planned that other investors will also be able to see the opening of the trading session on the website of the Stock Exchange by the end of the second quarter. The closing time of a trading session is extended until 2 p.m., thus, the duration of a trading session will be the same as in Stock Exchanges of other Baltic countries.
