THE DYNAMIC OF VALUES IN LITHUANIAN STOCK MARKET FROM YEARS 2010 TO 2020

Abstract

Lithuanian stock market still lacks of attention from big investments despite its merger with Latvian and Estonian stock markets. Now all three markets are part of NASDAQ stock exchange group and making new steps to be more attractive. And the main attraction for investors is growing value of their portfolios. The main article’s purpose is estimation of change in value of Lithuanian stock market in past 10 years from 2010 till 2020 by using Present Value calculations. The results show positive growth of portfolios by at least for 50% per last 10 years with inflation taken into account. Such growth was assured by cash flows received from dividends and stock prices on ex-dividend day of 2020. The advancers of Lithuanian stock market are Telia Lietuva, Ignitis and Apranga. These companies apply generous dividend policy and it made impact to growth of their value from 100% to 200%. Few companies showed negative growth of their Present Value during last decade. As a rule, such companies have poor dividend history, i.e. the amount of paid dividends was small or equal to zero. At last, COVID-19 has made the negative impact on all stock markets and Present Value ratios calculated in this article.