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Indices: / OMXR 0.00% / OMXV 0.00% / OMXT 0.00% / OMXS30 0.00% / OMXH25 0.00% / MICEX 0.00% Stocks: VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% / VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% Porfolios: StraterS 0.00% / koncik 0.00% / Laime 0.00% / Life 0.00% / RIX 0.00%
Latvian Stock Market Overview 08/01/2007 – 12/01/2007
Even though the Stock market was operating during holidays with respect to investment game this is our first trading week. The total turnover increased from 2,777,376.56 EUR to 5,097,481 EUR this week, which was also reflected in national mass media. This might indicate that in future there will be more investors in Riga Stock market, which could stimulate business environment in Latvia. Nevertheless, during this week there were 3 rises, 6 falls and 2 unchanged positions. The largest rise was showed by the Olainfarm (OLF1R) which increased by 13% to EUR 4,08, the largest decrease was experienced by Liepajas Metalurgs (LME1R) by 5% to 3,33 EUR. Ditton pievadķēžu rūpnīca (DPK1R) which showed the largest rise in week 11/12/2006 till 15/12/2006 decreased slightly by 1%. Both indices OMX Riga and BALTIX showed a small increase of 0,71% and 1.29% increase respectively. However this increase was not sustained during the whole weak as indices were decreasing until 12/01/2007.
Olainfarm (OLF1R) continues its trend of increasing share value; however this increase was sustained during the whole week, even though the trading week started with no significant movements of the price. However the increase could also be justified by a large deal of delivering medicine to Novartis of over than 1.1 million EUR. This press release justified investor’s confidence in Olainfarm cooperation with large international pharmaceutical companies and thus resulted in price increase. However, Olainfarm has showed a sustainable price increase during last few weeks. And thus it should be expected that the price would increase within foreseeable future.
Liepajas Metalurgs (LME1R) showed a decrease of 5% this week. It was associated with an official LME1R press release that budgeted year 2007 profit would be approximately 1 million EUR, in contrast to this year profit of over 9 million EUR. One of the main reasons for such significant difference is increase of energy prices and situation in the global market. LME1R was also mentioned and discussed in large business magazine – “Dienas Bizness” and as this enterprise is very affected by the global demand for its product, the extra attention to the risks might fear the investors even more. Even though LME1R are considering possible future expansion by more than 60%, unless it is clearly decided we might expect that this news will not affect decision of the investors. However, as soon as this decision is announced the share value would increase significantly. Similarly we could expect emission of new shares in order to cover expansion expenses. Thus we can expect that the prices will decrease; however these prices are very vulnerable to news events and investors should seriously consider buying these shares as the fluctuations might be unpredictable.
For other companies we can observe that the price changes were very small and can be explained due to some technicality, while there evidently was no significant fundamental reason for price changes.
By Natalja Avramenko
Aleksandrs Graholskis
Juris Rumba
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