RSE (Riga) Market Overviews
Latvian Stock Market Overview21/11/2005-25/11/2005
Trading turnover this week was 1,480,707.19 EUR, which stands very close to last week’s 1,436,156.69 EUR. The total turnover amounted to and respectively. The leader in turnover and in number of deals was Latvijas Kuģniecība (LSC1R) with 652,770.57 EUR and 369 deals. Atypically, Both OMX Riga index and BALTIX index fell this week by -2.58% and -0.68% respectively. The top performer was Liepājas Metalurgs (LME1R) with share price increase of +2.42%, while the week’s loser was Valmieras stikla šķiedra (VSS1R) with -7.84%.
Liepājas Metalurgs (LME1R) share price rose in part due to decision to invest 200 000 EUR in manufacturing, points to development and makes larger profits in future more likely. We expect the share price to continue increasing, since the announcement was made on Thursday and therefore many shareholders might not have reacted to it yet.
The large drop in Valmieras stikla šķiedra (VSS1R) share price is definitely related to its 9 month financial results. They were announced on Friday after the closure of stock market and revealed that the profit had been lower than expected. Obviously the large drop was mainly caused by information to which some stock traders got access earlier. Nevertheless, we expect further decrease in share price next week.
Latvijas Balzams (BAL1R) share price went up by 2.07% which was the second best achievement this week in Riga stock maret. On Friday after the closure of stock market Latvijas Balzams published its 9 month financial report; the results indicate 22% increase in sales, 46% increase in export, and 192% increase in profit. Since the trading activity this week was even smaller than usually, leakage of information has not affected the share price much this week, so we expect the share price of Latvijas Balzams to rise noticeably. However, dramatic increase is unlikely to happen, since positive results were expected, partly because of winning in competition for vodka supply to Norway’s alcohol monopoly about a month ago.
