RSE (Riga) - Latvian Stock Market Overview

As the temperatures outside are getting lower and lower, so are most of the stock values at Riga Stock Exchange (RSE). Another week has passed and for another week the OMX Riga (OMXR) index has experienced a fall; this week it was by 13.75 points, or 4.91%. On the contrary, the OMX Baltic Benchmark GI (OMXBBGI) index increased by 0.32%. The total turnover of main list was 84,141.85 EUR, which is a decrease of 1.79%. The amount of deals decreased by 29 in comparison to the first week of December and ended up at 216. There was only one company, whose stock value rose during the week, and it was SAF Tehnika (SAF1R). All other companies on the main list - Grindeks (GRD1R), Latvijas Kuģniecība (LSC1R), Ventspils Nafta (VNF1R) and Olainfarm (OLF1R) - had to face a decline.

This week was quite good for some firms. The biggest winner was Latvijas Tilti (LTT1R), which stock value rose by amazing 28% and almost reached the value of 4^th week of October. Second winners of the week SAF Tehnika (SAF1R) stock value rose by 14.5% from EUR 0.384 to EUR 0.441 after a month of decline. This effect is due to the “The Baltic Market Awards” ceremony last week where SAF Tehnika was declared as the best in three categories of “The Best Investor Relations”. 53 deals were made which is almost quarter of total deals in RSE main list. Another winner was Latvijas Krājbanka (LKB1R) with 9.3% increase to EUR 1.181. No radical changes here, because Latvijas Krājbanka’s stock value has been fluctuating at around EUR 1.80 since 18^th of November.

The biggest loser of the week was Ventspils Nafta (VNF1R) with 15.5% drop and reached a new record low value of EUR 1.067 during past 3 years. While the economic crisis is raving there is no chance in stock value to increase.

A reward from “The Baltic Market Awards” has not helped another loser Grindeks (GRD1R) which stock value dropped by 1.6%. While the winter season has not started the radical increases here are not expected.

Although it was predicted for Latvijas Gāze (GZE1R) stock value to increase, it has not happened. Company experienced a decrease of 327 points or 5.1% and continues decreasing since October when new tariffs of the gas were implemented. This is because of the low prices on gasoline which is linked with a purchase price of natural gas, thus in next year is predictable a price decrease of 3%-5% for households. Moreover, the decreased tax for delivery of natural gas will hold in 2009 at the rate of 10%.

The owner of two thirds of RSE secondary list turnover Liepājas metalurgs (LME1R) metalurgical production company also experienced a tiny drop by 1.7% this week. There was a change in shareholders announced last week, when Kirov Lipman acquired 17833 shares in 3 months and increased his ownership. (http://www.db.lv/Default2. aspx?ArticleID=35ec1e05-71aa- 4a88-8838-ff249183fc8e)