RSE (Riga) Market Overviews
Latvian Stock Market Overview12/12/2005 – 16/12/2005
This week was relatively more active than the previous one. The total weekly turnover amounted to 1,793,497.19 EUR (the week before it was only 1,240,107.11 EUR). The leader in turnover was Latvijas Kuģniecība (LSC1R) with 251,021.17 EUR. It might already sound like a rule of thumb that OMX Riga index performs better than BALTIX index. This week was not an exception – the former increased by 1,60%, while the BALTIX index managed to add only 0,76%. It is only because Estonian and Lithuanian stocks didn’t perform very well during the overview period. It seems like some kind of “year end profit-taking” is starting to take place in both of before mentioned stock exchanges. It is also expected that something alike could happen with Latvian stocks during the upcoming weeks as well. The top performer and loser of this week were Ditton pievadkezu rupnica (DPK1R) with +6,67% and Grindex (GRD1R) with -0,14% respectively.
Latvijas Kugnieciba (LSC1R) was the leader in turnover which amounted to 251,021.17 EUR this week. The price of the company’s shares climbed up by 0.78% and reached 1.84 EUR per share. In the end of November the price of Latvijas Kugnieciba shares reached a maximum, after which price experienced a slight correction. As a result, it is a good buy opportunity for new investors. Therefore we suggest that the share price could continue to increase in the future as well.
This week was rather intensive also for Rigas Kugu Buvetava (RKB1R). The company’s price per share increased by 3.17 % and amounted to 1.85 EUR per share. The main reason for the increase could be the fact that Rigas Kugu Buvetava has won the competition organised by Riga Free Port; the company will produce 2 special ships (ice-breakers). This success makes investors more confident about the company’s future, therefore, the price of shares increases.
Ditton pievadkezu rupnica (DPK1R) demonstrated the top performance of the week by adding +6,67%. This might still be the effect of better than expected Q3 report which creates a long term optimism about the company. For this reason we expect the share price to rise in the future; however, before mentioned year’s end profit-taking could cause the price to decline in short term.
Grindex (GRD1R) was the only stock among Riga Stock Exchange main list and I-list that managed to decrease in value during the week, although the decline was not very sufficient (-0,14%). At the moment the stock is experiencing a consolidation after the correction caused by exaggerated speculations about flu pandemic.
By Artūrs Kaņepājs
Viktors Ivanovs
