VSE (Vilnius) Market Overviews
Lithuanian Stock Market Overview20/03/2006- 24/03/2006
The ratio of increased and decreased shares was 1.9 as there were 23 rises and 12 falls in Lithuanian Stock Market this week. The total turnover of the week reached 7,285,846.54 EUR since coming shareholders’ meetings made investors interested in stocks; furthermore, there were 2,676 deals made. The most active company was Lietuvos Telekomas (LTK1L) which made 206 deals and ended the week with the biggest turnover of 2,079,196.60 EUR. Moreover, NORD/LB Lietuva (NDL1L) demonstrated the best performance with increase in share value by 13.43% whereas the Linas (LNS1L) sustained the greatest drop in stock value by 12.50%.
Lietuvos telekomas (LTK1L) was an absolute leader of the week trading shares. The total turnover reached 2,079,196.60 EUR. But the share price stayed almost unchanged (0.40%) at 0.72 EUR per share. So far the share buyers’ interest in Telekomas stock could be diminished by the lower than expected dividend rate and the emission of compensational shares. Probably, some shareholders would choose to sell the shares even for the lower price to obtain cash. Moreover, Telekomas announced the annual general meeting of the company’s shareholders, on 24 April 2006. Decisions of the meeting will influence the actions of the shareholders.
NORD/LB Lietuva (NDL1L), one of the largest commercial banks in Lithuania, sustained a great increase in stock value by 13.43% from 101.37 EUR to 114.98 EUR. In the ordinary general meeting of shareholders on 23 March 2006 the company’s profit of 12.47 million EUR earned in 2005 was approved; moreover, the biggest part of the profit was distributed to increase the bank’s share capital. The decision to allocate the profit for further strengthening made shareholders to believe that NORD/LB Lietuva can achieve its main goal - to be the country’s best bank. By the way, the shareholders also decided to change the bank’s name into AB DnB NORD bankas which would reflect a name of a new shareholder: Norwegian largest financial group DnB NOR.
Linas (LNS1L), one of the biggest manufacturer and exporter of linen products, presented dramatic results with weekly decrease in stock value. The share price dropped by 12.50% from 0.23 EUR to 0.20 EUR per share. Moreover, a general meeting of shareholders will be held in a month where the company is going to approve its performance report. Consequently, the price of stocks is decreasing since the results of Linas are quite unpredictable.
By Mantas Juknevičius
Sigita Juodeikytė
