RSE (Riga) Market Overviews
Latvian Stock Market Overview09/01/2006 – 13/01/2006
In overall this was quite an uninteresting week as no new important information or clues about possible price movement were issued. It seems like a slight profit-taking takes place after the previous year’s rally. So far the best beginning of the new year is for BAL1R (Latvijas Balzams) which has already increased by 17,78% on speculative optimism about the future performance.
The total turnover amounted to 1,346,888.87 EUR (the week before it was only 886,239.51 EUR as in W1 stock exchange was open only for 4 days). OMX Riga index added +0,08% while OMX Vilnius and OMX Tallinn finished the week in negative territory, therefore the BALTIX index also dropped (-0,59%). The leader in turnover among RSE emitents during the overview period was Valmieras Stikla skiedra (VSS1R) with 217,516.29 EUR. Only three stocks from the main list and I-list managed to increase in value during the week, namely Latvijas Kugnieciba (LSC1R) with +0,78%, Latvijas Balzams (BAL1R) with 3,92% and Liepajas Metalurgs (LME1R) with +0,95%. The biggest loser of the overview period was Rigas Transporta Flote (RTF1R) with -3,03%.
During the last week the price of Latvijas Gaze (GZE1R) shares slightly decreased by 0.09% to 10.91 LVL per share. Nevertheless, it is quite reasonable to suggest that there won’t be a big decrease in price, vice versa, it would rather go up as the company announced that its profit for the year 2005 is expected to be high. Furthermore, Latvijas Gaze is going to increase the gas tariffs because Russian giant Gazprom has increased the export price. Thus, the revenue of the company is expected to be even higher and it may have a positive influence on profits.
Latvijas Balzams (BAL1R) share price continues to go up steadily. This week it went up by 3.92% and amounted to 5.30 LVL per share. The previous week BAL1R added very impressive 13,33%. The future perspectives might be optimistic since the government has increased the excise tax for alcohol drinks and thus the company’s competitors have to increase the price which may result in bigger demand for Latvijas Balzams products.
Valmieras Stikla skiedra (VSS1R) which is considered as a rather passive stock was the most active this week. The change in price was, however, negative what is most likely a natural correction after the rally in the end of previous year.
The biggest loser Rigas Transporta Flote (RTF1R) dropped 3,03%. At least for the moment it is difficult to find a particular reason for such a move. Might be because of already before mentioned profit taking, which more or less is visible in the stock markets worldwide, in combination with rather vague performance in the last quarter of previous year (only +4,21% while OMX Riga increased by +17,37%).
By Niklavs Zemzaris
Viktors Ivanovs
