Market Overview: NASDAQ OMX Riga 2011, wk.

12
Highlights:
 During the week 12 NASDAQ OMX Riga index fell by 4.75%
 SAF Tehnika (SAF1R) increased in stock price by 9.63% this week
 Valmieras stikla šķiedra (VSS1R) had a dramatic fall, losing 6.89% of
its share value

Week 12 in NASDAQ OMX Riga was a quite steady week with almost no changes until Thursady,
24th of March, when Latvian Stock market index fell by 4.39%. Overall week changes of OMXR
index accumulated in -4.75%. Decline was induced by a tremendous plunge of Latvijas
Krājbanka (LKB1R) share value which dropped by 43.07%. The reason of the fall was
announcement of the OMXR stock exchange on the 24.03 that 31st March is the last day when
Latvijas Krājbanka shares are going to be traded. At the end of the last week the closing value of
OMX Riga index was 432.72 points and this Friday it closed at 412.18 points. The biggest winner
of the week was SAF Tehnika (SAF1R) with 9.63% gain, followed by Latvijas Tilti (LTT1R),
the previous weeks’ biggest loser, which finally rose by 9.52%. Whereas the biggest losses were in
Valmieras stikla šķiedra (VSS1R) with 6.89% fall in share value and Ventspils nafta(VNF1R)
with 5.91% stock price decrease this week. The total turnover of the Latvian Stock Market was
294 863.35 EUR.

Chart 1: OMXR index in week 12. Source: nasdaqomxbaltic.com

During week 12 SAF Tehnika (SAF1R) had a 9.63% increase in its share price. One of the reasons
for the rapid growth could be situation on market in past few weeks, when share price of SAF
Tehnika was constantly decreasing. Some investors now may see company’s shares quite attractive
due to the very low prices. The other reason could be the statement of the company’s officials from
23rd of March announcing that even though the company has 46% of its orders from African and

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 Riga 2011, wk. 12
Asian region, no orders were cancelled and most likely also would not be cancelled in the future
due to current unrests in the middle east. (bns.lv)

Chart 2: SAF1R in week 12. Source: nasdaqomxbaltic.com

The second best performing stock in Latvian stock market during the week 12 was Latvijas Tilti
(LTT1R), whose share value went up to 32.726 EUR (9.52%) from 29.880 EUR after a sustainable
fall lasting from the 8th of March, when its stock value was 36.895 EUR (Chart 3). As it can be
clearly seen on the graph 4, the most significant increase of the share price happened on Wednesday
(23rd of March), when it rose by 4.71%. After that the share price experienced two more noticeable
upward movements on Thursday (24th of March) and Friday (25th of March) by 2.32% and 2.22%
respectively. Latvijas Tilti is one of the biggest construction companies is the country, which
specializes in building and reconstructing bridges, tunnels, viaducts and mooring berths. We believe
that quite large increase in the share value during the last week is mostly a result of a price reaching
its lowest level. Traders do not expect a further decline and feel more confident in investing their
funds into LTT1R shares.

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.
Market Overview: NASDAQ OMX Riga 2011, wk. 12

Chart 3: LTT1R performance during the last month. Source: nasdaqomxbaltic.com

Chart 4: LTT1R in week 12. Source: nasdaqomxbaltic.com

The worst performer of the week 12 was the winner of the week 11 – Valmieras stikla šķiedra
(VSS1R) with a 6.89 % drop this week. . JSC Valmieras stikla šķiedra is one of the world's leading
manufacturers of glass fiber and its products. In fact, the company exports 95% of its production.
Generally the stock value of VSS1R is growing, having a 26.23% increase during the last 6 months.
But as it usually is after the big gains (10.27% growth in week 11), the fall of the stock price has
followed as some shareholders prefer to sell shares after such huge growths, not hoping for an even
bigger rise, so the decline can be explained by technical analysis. However, the beginning of the

3 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 Riga 2011, wk. 12
week was very stable for VSS1R particularly and Latvian stock market in total, where almost no
changes took place.

Chart 5: VSS1R in week 12 comparing with OMXR index. Source: nasdaqomxbaltic.com

One of the worst situations on the market in week 12 was also for Ventspils Nafta (VNF1R) which
lost 5.91% of its share price. This could be connected with the poor performance of the company, as
comparing to the previous year’s turnover it fell by 8.4%. In 2011 the company has reloaded 1775
thousand tons of oil products in the terminal which is for 4.42% less than in same period last year.
(bns.lv)

Chart 6: VNF1R in week 12. Source: nasdaqomxbaltic.com

4 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 Riga 2011, wk. 12
Due to a drop of some major stocks, such as Grindeks (GRD1R), Latvijas kuģniecība (LSC1R) and
Ventspils nafta (VNF1R), as well as an unexpected crash of the share price of Latvijas Krājbanka
(LKB1R), 11’s week increase of OMX Riga index gave way to another decline during the week 12.
This was especially curious, since most of the world stock markets were building-up after quite a
sustainable fall throughout the last weeks due to events in Japan and Libya, as we also forecasted in
the eleven's week market overview. We are still expecting that Latvian stock market will be moving
up by reason of investors feeling ground under their feet. In particular, we would recommend
shareholders putting their funds into the shares of Latvijas Tilti (LTT1R), since it is very likely that
its stock price recapture its lost positions.

Review by: Aleksejs Razživins, Andrejs Zavertjajevs, Santa Kratule

5 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.