Tallinn 10:00-14:00
Riga 10:00-14:00
Vilnius 10:00-14:00
Moscow 09:30-17:45
Stockholm 10:00-18:20
Helsinki 10:00-18:20
ETFs 16:30-23:00

All times: GMT +2
2009-01-01 14:28:01
EUR/USD 0.7186
EUR/LVL 1.4144
EUR/LTL 0.2896
EUR/EEK 0.0639
EUR/SEK 0.0924
EUR/RUB 0.0255
Indices: / OMXR 0.00% / OMXV 0.00% / OMXT 0.00% / OMXS30 0.00% / OMXH25 0.00% / MICEX 0.00%                     Stocks: VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00% / VTBR 0.00% / OMXV 0.00% / OMXR 0.00% / EEH1T 0.00% / GAZP 0.00%                     Porfolios: StraterS 0.00% / koncik 0.00% / Laime 0.00% / Life 0.00% / RIX 0.00%
 

VSE (Vilnius) - Lithuanian Stock Market Overview

Year: 2008 Week: 50

Although the Christmas is coming, the investors feel that a red-dressed Grinch has stepped into OMXV market and is willing to steal the Christmas joy. The market finished the week with a decrease of 1.31 percent to 170.46 points. The investor’s actions were highly influenced by the world news. The most destroying this week was that the USA Senate rejected the 14 billions of USD car manufacturers saving plan. After the announcement, the stock markets worldwide were heading the same direction – down down. So the total Grinch’s performance during the week caused a plummeting of 3.51 percent. Although during the week there were 2,769,415.49 EUR put into action, only some of them brought positive profits.  

The Grinch obviously overlooked Invalda (IVL1L) as the stock price rocketed by fantastic 36.29 percent to 0.49 EUR., breaking the way through the 13 EMA (Exponential Moving Average).

 

Also, Sanitas (SAN1L) took an advantage of positive circumstances. The stock price increased by 15.26 percent to 2.60 EUR. One more company, City Service (CTS1L) has risen by 12 percents to 0.97 EUR, stressing an imperfect work of Grinch. However, Agrowill Group (AVG1L) experienced the hugest losses during the week as the stock market price decreased by 22.45 percent to 0.55 EUR. Snaigė (SNG1L) also lost a fifth of its stock price (20 percent) and ended the week at 0.17 EUR. During the last trading session 6 companies increased and 16 decreased, so overall, the Grinch’s marginal rate of productivity was high.  

The investors positively accepted the news that Invalda (IVL1L) is going to sell 3 real estate projects, so that the company could increase its assets. The stock price rallied by 36.29 percents. However, at the end of the week the announcement came that Invalda has sold the shares of a company “Girių Bizonas“. Invalda had 122,497 stocks (25 percent). The investors took this new as a sign of a pessimistic situation and forced the price to go down by 14.65 percent. Unfortunately, there are no significant signs (except not-working technical analysis) that the price will recover and show the same performance as this week.   

How can Ūkio Bankas (UKB1L) not be in this market overview, when there was an announcement of their 11 first months results of the year for which all the investors were waiting and which was like the most important announcement this week. Even though investors had quite negative insight on the results, they were better than some of the investors could have expected. On Tuesday price has also completely abolished the increase made on Monday‘s session (6.85 %), its price has dropped by 5.13 % and unfortunately even the announcement of 21.3 % increase in Net profit of the period from January to November compared to last year‘s same period hasn‘t changed direction of the price for whole remaining week. Investors judged the results differently, because if the profit gained in sell of real estate building had not be counted, eleven months result would have been 12.9 percent lower. Overall, the price over the week has shrunk by 9.59 percent. Ūkio Bankas (UKB1L) has postponed its plans to release a new emission of shares, as they are not satisfied with the current price of the stock. However, negative company‘s announcements should not push the price up next week. 
 

Agrowill Group (AVG1L) has experienced a really dark week concerning its share index value in the Vilnius Stock Exchange. On Tuesday morning it was announced that Agrowill Group (AVG1L) has made an agreement of cooperation with the biggest Milk Industry enterprise DeLaval. The agreement should improve the efficiency by 40 percent. However, investors didn‘t seem to like this agreement very much as the share price decreased by 8.06 percent that day. Unfortunately that wasn‘t even the worst day for the share, because on Thursday its price has dropped by 14.78 percent suspiciously before the company‘s announcement about its short term future plans. Company is not willing to expand anymore in the nearest future; it will focus on improving the efficiency and minimizing the costs. Moreover, analysts are worried about the intensive borrowings of the company. On 30 September, company‘s debts exceeded its own capital. After Friday‘s trading session it was announced that ŽIA Valda has dropped the agreement to buy 3,090,030 of shares. This kind of actions could lead to the remaining decreasing trend next week as well, as this week, pessimistic investors has forced the price to drop by 22.45 percent. 

To sum up, like always, there are plenty of opportunities for traders and pessimistic week ahead for the long-term investors. The next week does not seem to be bright as well. The forecasts, released by the Head of Seimas Budget and Finance Committee Kęstutis Glaveckas showed that the Lithuania‘s GDP is going to shrink by 4.8 percent in 2009. So tighten your portfolio safe-belts, there is very volatile period ahead. 


Review by: Justina Banytė, Vytautas Liatukas