Autorius: DnB NORD bankas, Parašyta: 2007-01-29 11:44.
URL: https://www.traders.lt/page.php?id=250
Key stocks for this week
* Optimism may persist in the Estonian market this week. In particular, there may be further growth for Estonia’s construction company, Eesti EhituEesti Ehitus. After a rally last week, the Company announced that it had concluded a contract with the Tartu City Government to construct the extension of the Tartu Kesklinna School.
The contract, which should be completed by October 2007, is worth EUR4.5 million, excluding VAT. The Company’s share price could increase on this news, as it has previously responded positively to the conclusion of new contracts.
* The Lithuanian banks may generate upward movements during the forthcoming week. This follows the positive outlook presented by the DnB Nord Bankas’ economists about the Lithuanian banking sector. In particular, a positive outlook is perceived this week for Ukio Bankas, which is benefiting from high liquidity and which remains to be one of the cheapest listed Lithuanian bank.
* The opinion is less favourable for Lithuania’s furniture company, Vilniaus Baldai. This follows the announcement that the Company’s loss for 2006 of LTL4.0 million exceeded its expected loss of LTL1.9 million. The concern over the share price this week is heightened by the 1.5% decline in Invalda’s stakeholding in the Company.
* This week the Latvian Public Utilities Regulatory Commission will hear the proposal from Latvia’s gas company, Latvijas Gaze, regarding the request to increase its gas tariffs by 42% to 45%.
Although this should already be accounted for in the share price, it is believed that the share price still may have place to move upwards based on the outcome, as has been the case before.
Last week highlights
PKN Orlen order for Mazeikiu Nafta shares
PKN Orlen has submitted an order to purchase all minority shareholder shares for Lithuania’s oil company, Mazeikiu Nafta. The offer will remainat the mandatory offer price of LTL10.25.
Olainfarm concludes another sales order
Latvia’s pharmaceutical company, Olainfarm, experienced a 4.6% increase in its share price to LVL2.94. This followed the announcement that the Company concluded a contract to supply the PASA-sodium salt medication for tuberculosis to Kazakhstan. The contract is worth LVL1.0 million and constitutes the single largest sale of the product.
Bank results released
The Lithuanian banks released their preliminary results last week. Ukio Bankas announced that its consolidated unaudited net profit for 2006 reached LVL45.8 million, and that it projects that it will further increase
its net profit in 2007 to LTL61.4 million. The share price fell by 0.2% to LTL4.37. The share prices of Bankas Snoras and DnB Nord Bankas also fell following their preliminary results announcements. Bankas
Snoras announced that the Company’s profit for 2006 of LTL52.3 million exceeded the Company’s own expectations. The share price reacted by falling from LTL5.69 to LTL5.62. DnB Nord Bankas’ share price fell
by LTL1 to LTL440 when it announced that the Company’s net profit rose from the 2005 level of LTL43.0 million to LTL56.2 million in 2006.
Tallink Grupp in the news again
The share price of Estonia’s passenger liner, Tallink GrupTallink Grupp, was split last week to account for the new share issue. On Friday, the share price rose from the adjusted price of EUR1.43 to
EUR1.50 on the back of the news that the first quarter sales rose by 200% to EUR190 million and the net profit rose by 83%. This was attributed to the company’s increased operations and improved core routes. Also, the Company announced that it chose not to tender for the Gotland ferry service due to the restrictive terms and conditions.
2007 projections for Ventspils Nafta
The Latvian oil transshipment company, Ventspils Nafta, announced that it had not adjusted its 2006 projections for 2007. It continues to project a 2007 sales of LVL52 million and net profit of LVL5 million. The share price reacted negatively to this news and fell 0.8% to LVL2.42.