VSE (Vilnius) Market Overviews

22/10/2007-26/10/2007

OMX Vilnius yield index was fluctuating this week but at the end of the period it resulted in a drop of 0.11% and closed at the value of 579.43, with negative results in the majority of intensively traded positions. There were 23 falls versus 12 rises in the OMX Vilnius main and secondary lists. Due to many companies announcing their third quarter results, traders were quite active: the grand total of deals was 5446 and the overall turnover reached 16,503,463.65 EUR. The biggest winners this week were Rytų skirstomieji tinklai (RST1L) and Pieno žvaigždės (PZVL) while the biggest drops were Snaigė (SNG1L) and Utenos Trikotažas (UTR1L).

The biggest decrease in price of stock was experienced by Snaigė (SNG1L) with a drop of 5.84 % to 2.23 EUR, total turnover of the week reaching 1,089,148.54 EUR. This decrease is a continuation of a huge dive of the price of shares of Snaigė after it published its financial results of the first half of the year, which showed that the company made a loss during that period. Moreover, the announcement of an extraordinary general meeting of shareholders, which will take place on November 29th, may have affected the price negatively.

Utenos Trikotažas (UTR1L) was the second loser of the week: it had a decrease of 4.90 %. All week it remained stable at 1.55 EUR with only a few deals and only dropped to 1.47 EUR on Friday, October 26th. At the end of the day adjustments of previous half years’ financial results and preliminary results of all three quarters were announced. Worse than expected results were caused by low utilization of production capacities, particularly in Ukraine, which led to an inability to accept all production orders. More active trading with a downward trend in this position can be expected for the next week as a result of these pesimistic announcements.

Rytų skirstomieji tinklai (RST1L), a distributor and public supplier of electricity, experienced the highest growth in stock value in the main list by 9.09% to 1.59 EUR this week. RST1L was the first on the main list by the number of deals (739) and the total turnover reached 1,271,919.51 EUR. The biggest gain (from 1.44 EUR to 1.62 EUR) was seen on 24 October due to the publishing of preliminary results of the 3rd quarter and prediction of the annual results for 2007. During the week, the highest suggested price was 1.68 EUR on October 25th and since then it fluctuated a lot. Therefore, it would be hard to predict the value of shares next week; on the other hand, huge increase or decrease should not be expected.

There was a significant increase of 4.04% in the price of stock of Pieno Žvaigždės (PZV1L), a manufacturer of milk and dairy products. This position reached its all time high of 1.79 EUR, generating a total turnover of 660,819 EUR during the week. The reason could be investors’ expectations of good 3rd quarter results which should be announced soon. Also, on Friday, 26th October, the company started the execution of a share buy back and approved the price of 1.74 EUR (6.00 LTL) for this offer. Execution is scheduled for 14 days so the price of this stock should not drop below 1.74 EUR in the upcoming weeks and more trading activity in this position could be expected when the results are announced.