Market Overview: NASDAQ OMX Vilnius 2011, wk.

14
Highlights:
 Extremely passive mood – low turnover.
 Vilkyskiu pienine (VLP1L) announced dividends
 Pieno Zvaigzdes (PZV1L) announced dividends

The 14th week was extremely passive. Even announcements concerning dividends and the first
quarter results did not generate any higher turnover. Moreover, pessimistic mood dragged down the
OMX Vilnius index. It decreased by 1.60% from 399.56 to 393.18 points per week. The total
turnover throughout the week reached only 1 527 715.16 EUR. During the week total of 9 stocks
increased, 23 declined and 6 have not changed their price. The biggest winner this week was Lifosa
(LFO1L) with 5.59% gain, although this was done by 3 deals which amounted to 402.55 EUR. The
more reasonable increase occurred in two milk production companies Pieno Zvaigzdes (PZV1L)
and Rokiskio Suris (RSU1L). Stocks rose up by 4.84% and 3.85% respectively. The biggest
negative gain in stock prices had Klaipedos Nafta (KNF1L). It dropped by 9.22%. These stocks
were followed by Snoras (SRS1L) and Panevezio Statybos Trestas (PTR1L) which similarly
declined by 4.42% and 4.26%.

Chart 1 OMXV index in week 14. Source: nasdaqomxbaltic.com

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX Vilnius 2011, wk. 14
Rather complicated beginning of the year and low dividends yield had a negative impact to
Klaipedos Nafta (KNF1L) stocks. The company loaded 1.85 million tons of oil products to the
tankers and unloaded 1.87 million tons of oil products to the shore tanks, which are 4% and 1% less
than the first quarter last year. The company directors explain this decline happened due to bad
weather conditions this winter, especially due to a lot of snow on land. In addition, March was
significantly worse than it was last year – 7% decrease in revenue. The other important reason for
the decline in the stock price was low dividends yield which now amounts to 2.2%. There was an
announcement about decisions made after general meeting of shareholders on the 5th of April. The
company will pay 0.01 EUR per share. Finally, Klaipedos Nafta announced their results for last
year and it can be explained from different perspectives of view. The company reloaded almost 8
million tones of oil products and it was 3% more than previous year. They had the first crude oil
reloading from Venezuela. However, due to written-off unused property (2.5 million EUR) and
increased expenses the net profit decreased by 31%. Obviously, investors estimated these reasons
negatively.
Company which is not in the list of winners or losers of the 14th week Siauliu bankas (SAB1L)
decided to follow other Lithuanian banks and issue new shares worth 30 million litas (8.7 mill.
euros). These shares will be sold to the small investors to increase their share of the pie. One share
will be worth 0.301 euro while the price in the market on Friday was 0.311. It can be regarded as
good news but at the same time investors can expect a small decline in the price as new issued
shares will be cheaper.
Pieno Zvaigzdes (PZV1L) which is one of the leading companies in milk procurement processing
and realization sector Pieno Zvaigzdes is going to pay 24.8 million litas (7.2 mill. euros) as
dividends. It is equal to 0.14 euro per share. This announcement exceeded all expectations because
last year’s dividends were 0.067 euro per share. At the same time company decided to increase its
capital by issuing new shares worth 20 million litas (5.8 mill. euros). This decision was taken not
very kindly by investors as they think it is an attempt of the biggest owners to increase their share in
the company. Despite this fact company has very high plans for the future to increase their net
profit by 50% next year from 17.197 million litas to 28 million. Also they expect rising income
from export. All things considered Pieno Zvaigzdes led OMX Vilnius market this week.
Vilkyskiu pienine (VLP1L) also announced dividends equal to 0.0695 euro per share. It exceeded
expectations as last year they paid only 0.029 euro per share and analysts this year expected
dividends between 0.031 – 0.05 euro. Company has earned 3.064 million litas (0.887 million euros)
of net profit and it was lower by 25% then it was in 2009. Therefore the price of the stock hasn’t
risen and stayed almost in the same position during the whole week.
Authors: Tomas Matulionis, Martynas Samulionis, Mindaugas Vaznonis, Gerard Chmyznikov,
Auris Germanavičius.

2 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.