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This week was not very successful at Tallinn Stock Exchange. The shares of only three companies increased in price, the others experienced fall. The price of the main stock market index fell down by 2.16%. The main winners were Olympic Entertainment Group (OEG1T) – stock value increased by 3.93% , Kalev (KLV1T) – increased by 0.56% and Norma (NRM1T) – increased by 0.39%. Unfortunately, Baltika Grupp (BLT1T),  Silvano Fashion Group  (SFGAT) and Trigon Property Development (TPD1T) proved to be losers of the week, their indexes decreased  by 10.89 %, 10.16 % and 9.09 % respectively.

During this week, the biggest stock increase in OMXT was at 3.93% for the Olympic Entertainment Group (OEG). Most of the weeks deals were made particularly with OEG stocks, as its lowest price during the past 3 months had been closed on 17th of October, the week before. Moreover, the OEG signed a deal on Saturday with Admirāļu Klubs, which is the third most largest Casino company in Latvia, buying it for 40 million euros, hence the gossip before could have encouraged to invest in its stocks. The Olympic Entertainment Group stands now at € 5.29.

Baltika (BLT1T), which fell 10.89%, was the biggest decreaser last week. It managed to come down 0.66 euros from its closing price on last Friday, EUR 6.06 and had total turnover of 1.58 million euros. The declining started on Tuesday, when Baltika announced its 9-month sales report. Investors did not like that Baltika’s net profit for nine months fell by 30.5% to 2.5 million euros. However, the net sales were EUR 53.9 million, which means an increase of 36.5% for nine months. Profitability change is most likely due to company’s rapid expansion by opening new shops, especially on the Russian market. Baltika’s sales space has grown 45% last year. So, although in the short term Baltika might be decreasing as the net profit was lower than usual, in the long term, the stock is probably bullish as so far the company has achieved to start succesfully most of the new stores, which means there is expectation for heavy profit increase.

The shares of Silvano Fashion Group (SFGAT) decreased in price by 10.16%. There are no news about this company in media, obviously investors are afraid that in case of economy cooling people will stop buying fashionable clothes.

Olympic Entertainment Group had the biggest turnover : 5,976,729.87.  Substantial growth in the OEG's turnover expected as a result of already mentioned transaction (acquisition of AS Admirāļu klubs).   As Olympic Entertainment Group secured its position on Latvian gambling market, its turnover is expected to grow even more.

© 2007 SSE Riga Investment Fund