RSE (Riga) Market Overviews
Latvian Stock Market Overview28/11/2005-02/12/2005
Despite the fact that during the week a lot of Q3 reports came out, the trading was rather inactive. The total turnover amounted to 1,896,094.04 EUR (the week before it was 1,480,707.19 EUR). OMX Riga index continued outperforming the BALTIX index by adding +0,65% while the later decreased by -0,25%. The negative change in the BALTIX index was influenced by reasonably weak Lithuanian stock performance during the week. The leader in turnover among RSE emitents during the overview period was Latvijas Kugnieciba(LSC1R) with 741,032.57 EUR. The top gainer and the top loser were Latvijas Balzams (BAL1R) with +8,86% and Liepajas Metalurgs (LME1R) with -3,30% respectively.
Latvijas Kugnieciba (LSC1R) with total turnover of 741,032.57 EUR represented the most traded share on OMX Riga; however, the share price on the Friday closed at the same level as it opened on the Monday. Such an increased activity could be explained by the fact that Latvijas Kugnieciba announced its financial performance results on the 29th November. The company’s profits doubled comparing to the analogical period in the past year. Therefore, the company’s investors are entitled to have high expectations about Latvijas Kugnieciba successful performance in the future.
Latviajs Balzams (BAL1R) price per share continues to go up rather steadily. This week it increased by 8.86 % which was the highest increase in share price among all companies. According to the announcement of the company’s performance results on the 25th November, its profits for three quarters of the year 2005 amounted to 2 898 000 EUR. The management of Latvijas Balzams explains such a successful performance by increased export to the West Europe. The company also sold its shares of a Lithuanian company “Baltijos Alkoholiniai Produktai” to SPI “Worldwide Trade Limited”. The shares were sold in order to make the restructurization of Latvijas Balzams and, thus, to make the distribution of the company’s products in Lithuania simpler. Due to the successful performance and planned improvements the price of Latvajas Balzams shares might increase even more.
Valmieras stikla šķiedra (VSS1R) was the second best performer of the overview period. The share price increased by 5,96% during the week. As a reason for that could serve the fact that on the November 25th Q3 report was announced which could have stimulated some optimism among the investors about this company’s future performance; however the third quarter results were not as good as the second. Still it is expected for this share to continue increasing in value during the next week.
Ditton pievadķēžu rūpnīca (DPK1R) also was one of this week Q3 report announcers. Results were not bad actually. Ditton had performed better than forecasted; however, the share price declined during the period by -3,26%, which was the second worst result. Market participants should have anticipated even better results.
By Niklavs Zemzaris
Viktors Ivanovs
