NASDAQ OMX BALTIC Year: 2012 Week: 12

12th week of 2012 in the Baltic main market ended at the same mark where it started, at 469.02. Chart 1 shows that the index increased in the beginning of the week until March 21, when a continuous fall was observed till it regained and exploded 0.3 per cent points, which was followed again by a sharp drop and stabilization at the level from previous week in just one day (23.03).

Chart 1: NASDAQ OMX Baltic index comparison 16.03-23.03. Source: nasdaqomxbaltic.com

Top stocks of week 12: Nordecon (NCN1T) price went up by 5.24%, from 1.03 to 1.085 EUR per share, which is the biggest increase in Baltic market this week. During the 12th week there were no announcements which could have caused the price increase. But one of the reasons behind the growth could be explained by announcement of Estonian Statistics on 09.03.2012 which claimed that in the 4th quarter of 2011 economic activities in construction field increased by 24%. Indeed, some investors could see this as a potential growth of Nordecon (NCN1T) in near future.

Chart 2: NASDAQ OMX Baltic benchmark and NCN1T index comparison 17.03 23.03. Source:

nasdaqomxbaltic.com

Second place belongs to City Service AB (CTS1L), which faced a 4.68% rise of its stock price, notwithstanding that there were no announcements which could have

caused such an increase. The only explanation could be that the increase in real estate business could have increased investors interest in City Service AB (CTS1L) - a company which manages building maintenance services in Baltic States.

Chart 3: NASDAQ OMX Baltic benchmark and CTS1L index comparison 17.03 23.03. Source:

nasdaqomxbaltic.com

The last of top 3 performers this week was Lithuanian investment company Invalda (IVL1L), which stock price climbed up by 4.50%, from 2.18 to 2.278 EUR. Despite of no news about the company and price decrease by 11% starting from 18 February 2012, the increase in stock price could be explained by the fact that Invalda (IVL1L) had 61 million EUR profits in 2011, thus investors could see a price increase potential.

Chart 4: NASDAQ OMX Baltic benchmark and IVL1L index comparison 17.03 23.03. Source:

nasdaqomxbaltic.com

The worst performers of the week were three Latvian companies: Latvijas kugnieciba (LSC1R), Ventspils Nafta (VNF1R) and SAF Tehnika (SAF1R). They suffered 6.52%, 4.52% and 3.73% declines in stock prices respectively. Reason why Latvijas kugnieciba (LSC1R) has lost some value of its shares might be in fact that it for the first time published its ship charter rates, which might have had upset investors being unexpectedly low. Although almost three weeks ago LatRosTrans announced 7.4 milion investment in the next four years, price per share of Ventspils Nafta (VNF1R) dropped; we think the reason is that investors did not like that the company announced it will publish its financial statement for the first three months only in May 24-31. Ambiguous fact is

also that Ventspils Nafta is the biggest share holder of the Latvijas kugnieciba (LSC1R). Notwithstanding the fact that the share price of SAF Tehnika (SAF1R) has been decreasing for one and a half year, it should be taken into account as a potential future investment. The reasoning behind that is the announcement at CeBIT 2012 on March 6, 2012, the company was first to introduce five year warranty in the industry for hardware and software related issues completely free of charge.

Chart 5: NASDAQ OMX Baltic benchmark and LSC1R, SAF1R and VNF1R index comparison

17.03 23.03. Source: nasdaqomxbaltic.com

Looking forward at the 13th week of 2012 it is most likely that OMX Baltic index will increase or stay at the same level, as it has been for two previous weeks. Regarding stocks and their movement, they are tightly connected to fiscal and monetary policies of the Baltic countries. As the stock market is driven mostly by the investor future expectations, the government has important role in making these expectations and also fulfilling them in real life. Armands Ikaunieks Anastasija Muravjova Krlis Znoti Julius Simulionis