RSE (Riga) Market Overviews
Latvian Stock Market Overview06/03/2006 – 10/03/2006
This week the turnover went up to 2,254,663 EUR in comparison to the last week’s 1,506,973.18 EUR. OMX Riga index fell by -2.37%, which almost perfectly corresponded to BALTIX index decrease of -2.35%. Latvijas Kuģniecība (LSC1R) was far ahead others in turnover with 758,818.36 EUR and share value decrease with -10.09%. Share price increased only for Latvijas Gāze (GZE1R) and Grindeks (GRD1R) by +2.11% and +0.82% respectively.
Latvijas Kuģniecība (LSC1R) share price decreases every day of the trading week. Financial report which was published on 27th of February is probably playing an important role here. According to un-audited profit of the company in 2005 was 30.4 million USD, which is almost 2.5 times less than 71.4 million USD profit the year before. The share price fall is thus expected to continue.
Latvijas Gāze (GZE1R) abovementioned share price increase seems strange if we take into account that it has received a warning from Riga Stock Market board about violation of its rules. Latvijas Gāze is the only Latvian company from Baltic Main List and Baltic I List which has not released its 12 month un-audited financial report yet, which had to be done until the 28th of February. The explanation might be good unofficial results, provided by insiders.
All in all this was a depressing week for Riga Stock Market. Shares of 4 out of 12 companies decreased in value by more than 6%. It is probably directly related to releasing 12 month financial reports the week before. This could also have contributed to share price increase of Latvijas Gāze, since a lot of money has been released due to sales of other shares. However, it is clear that such sharp fall of share prices is not likely to go on for long, so the next week OMX Riga is expected to decrease, but much less sharply.
By Arturs Kanepajs
