RSE (Riga) Market Overviews
Latvian Stock Market Overview14/11/2005-17/11/2005
This week was less active than the previous one. The total turnover amounted to 1,436,156.69 EUR (the week before it was 1,859,345.34 EUR). However, during next week the turnover is expected to increase, because of upcoming Q3 reports of Latvijas Balzams (BAL1R) and Valmieras stikla sķiedra (VSS1R). The leader in turnover during the overview period was Latvijas Kugnieciba (LSC1R) with 252,905.54 EUR. As usually, OMX Riga index outperformed the BALTIX index by increasing +1,92%. The later managed to add only +0,26% which is explained by weak Estonian and Lithuanian markets during the past week. The top performer and loser of the week was already mentioned Latvijas Balzams (BAL1R) with +8,71% and Grindex (GRD1R) with -2,07% respectively.
Despite the fact that investors haven’t received any official information about Latvijas Kugnieciba (LSC1R) performance during the past few weeks, its share price climbed by 6,67% to 1,28 EUR per share reaching a record price in the company’s history. Basically, the continuous increase in price is due to investors’ expectations concerning high profits of the company. We expect the price of LSC1R to rise in the short term.
Latvijas Balzams (BAL1R) had the biggest increase in share price during this week comparing to other companies. The price of the company’s shares increased by 8,71 % and amounted to 3,87 EUR per share. The company had 34 deals and a turnover of 26,681.42 EUR this week. In the future the price of Latvijas Balzams shares might also increase as the company is going to announce its financial results for past 9 months between November 21 and November 25. Increase in share price partly could also be explained by the expected positive effect on company’s profit due to supply of vodka to Norway’s Vinmonopolet, the country’s state liquor monopoly.
Grindeks (GRD1R) share price decreased by 2,32% and amounted to 7,10 EUR per share. The company had 47 deals and total turnover of 143 548.05 EUR this week. The decrease in price could be caused by market participants’ willingness to lock in profits after remarkable share price increase on speculations about flu pandemic. This week Grindeks lost the opportunity to acquire Polish pharmaceutical company’s shares by offering a rather low price. Lithuanian pharmaceutical company “Sanitas” offered a higher price and left Grindeks behind winning the auction. However, this fact should have a positive short term impact on companies share price as Grindeks will not face the high acquisition costs.
Olainfarm (OLF1R) had almost thrice as little deals as during the previous week, 43 deals with a turnover of 22 599 EUR. The price per share decreased by 0.52 %. However, in future the price per share might go up because on November 16 Olainfarm announced that it is going to develop new service – provision of its clients with laboratory services. This may result in attraction of new clients and in higher profits as well.
By Niklavs Zemzaris
Viktors Ivanovs
