Capital Market Activity Barometer
Capital Market Activity barometer
English

About the Barometer

The first analytical review of its kind in Latvia, the Signet Bank Capital Market Activity Barometer (hereinafter referred to as – the Barometer) combines historical and current data on the domestic capital market activity from 2018 to 2024. It offers a data-driven and transparent insight into market dynamics, as well as into how the media and society, and local entrepreneurs in particular, perceive the capital market.

The Objective of the Barometer

The objective of the Barometer is to create a transparent and trustworthy source of information that helps entrepreneurs, investors, politicians, industry professionals, and the public as a whole to better understand the directions in which the Latvian capital market is developing as well as its potential for growth. It is hoped that the Barometer will inspire long-term changes by encouraging more companies to leverage various financing instruments.

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"The Capital Market Activity Barometer is not merely an indicator – it is a compass that helps guide the capital market towards sustainable development."

"The Capital Market Activity Barometer is not merely an indicator – it is a compass that helps guide the capital market towards sustainable development."

Roberts Idelsons
Roberts Idelsons
Chairman of the Management Board, Signet Bank
Chairman of the Management Board, Signet Bank

Right now, the development of the Latvian capital market is comparable to the formative growth stage of a business, whereby a stable foundation has been built, positive development inertia has emerged, and the key imperative now is to focus on scaling up to achieve a significant breakthrough.

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The Growth Vector of
the Latvian Capital Market
The Growth Vector of
the Latvian Capital Market

"Growing activity on the part of investors indicates that there is capital seeking opportunities in Latvia – the question is which businesses will be brave enough to offer such opportunities. These days, good brands attract not only buyers but also investors – and the stock exchange is becoming a bridge between these roles."

"Growing activity on the part of investors indicates that there is capital seeking opportunities in Latvia – the question is which businesses will be brave enough to offer such opportunities. These days, good brands attract not only buyers but also investors – and the stock exchange is becoming a bridge between these roles."

Valters Smiltāns
Valters Smiltāns
Investment Analyst, Signet Bank
Investment Analyst, Signet Bank
Investors – the Driving Force Behind the Market
Signet Bank Latvian Capital Market Activity Barometer
(2018=100)

Overall, it is evident that interest among investors in the domestic capital market is growing healthily, despite the fact that at present the choice of opportunities remains limited. Meanwhile, a clear signal is being given that the listing of large and high-quality companies on the stock exchange could significantly activate institutional investors and could likewise make the offering more attractive to small investors. Overall, this would precipitate an increase in activity in the domestic capital market.

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The Untapped Potential
of the Capital Market
The Untapped Potential
of the Capital Market

Although awareness on the part of entrepreneurs is growing, action remains sluggish, and as a consequence – the potential of the capital market remains untapped.

Since 2021, knowledge about all alternative financing instruments has decreased among entrepreneurs, especially in regard to public programmes and investors. This might be attributable to the fact that these instruments were more heavily promoted during the pandemic, subsequent to which communication and, hence, interest have declined. However, although state support instruments are no longer quite as relevant as they were, the capital market has still not filled this vacant niche. State support mechanisms (Altum, EU programmes) continue to dominate entrepreneurs' financing choices, whereas listing a company on the stock exchange and bond issues are viewed with caution or not considered at all.

Despite the decline compared to 2021, overall the level of awareness about alternative financing options displays a positive dynamic. The level of awareness about capital market instruments in particular is very good – entrepreneurs are best informed about attracting capital through investors (46%), while 28% are aware of stock listings. Only 12% of entrepreneurs admit not having heard about any of these solutions, which is a positive signal, indicating that the market is no longer "anonymous”.

of entrepreneurs acknowledge having heard about the opportunities offered by the capital market. This is the highest level of awareness to date.

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Lots of Talk, Little Action:
Lots of Talk, Little Action:
the Capital Market in the Media Space
the Capital Market in the Media Space

"Although the capital market is increasingly being discussed in the public space, action remains sluggish. The Barometer has the potential to be a tool that helps discussions turn into progress, not just opinions."

"Although the capital market is increasingly being discussed in the public space, action remains sluggish. The Barometer has the potential to be a tool that helps discussions turn into progress, not just opinions."

Ivars Svilāns
Ivars Svilāns
LETA Data Service Development Manager
LETA Data Service Development Manager
Publicity Analysis Methodology

A key aspect of the Barometer is analysis of the publicity of topics linked to the capital market in the Latvian media. The analysis was conducted using the national news agency LETA's media monitoring database STATION, compiling over 20 million publications. STATION is currently the most comprehensive database of Latvian media publications available.

The Barometer analysis covers the period from 2018 to 2024, with a more detailed focus on 2024. To assess the coverage of the capital market in the public space, print and internet portal materials were analysed using keywords in the following groups: capital market, bonds, Nasdaq Riga, stock exchange listing, IPO, share issue.

12 427
In total, the keywords were mentioned in 12,427 articles in 2024, potentially reaching an audience of 370 million (no. of mentions x media audience).
Topic mentions
January-December 2024
The Media Environment as a Basis for Strategic Choices in the Capital Market

The capital market and corporate financial management demand strategic thinking and a responsible approach. Therefore, decision-making in this realm is a long-term process requiring careful preparation. Information available in the public space forms the background or context in which the foundations for further actions are laid. Studying this information in-depth facilitates the timely recognition of market trends and making predictions about potential development scenarios.

The dynamics of topics related to the capital market have been analysed in LETA's media monitoring databases since 2021.

It is evident that although the capital market is one of the topics that many have tried to discuss, genuine action is often lacking. Discussions about listing companies on the stock exchange and the development of capital market instruments in Latvia have been ongoing for years, but only recently have concrete steps been observed in the practical use of these instruments – steps that have been common practice elsewhere in the world for decades.

Six main topic blocks are considered in this analysis: bonds, Nasdaq Riga, stock exchange listing, capital market, IPO, and share issue. In turn, three of them are the focus of deeper research: bonds, the capital market, and stock exchange listing.

Topic mentions
January-December 2024

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Study Authors and Data Partners

The authors of the Barometer are Roberts Idelsons, Chairman of the Management Board at Signet Bank, Latvia's leading investment bank, investment analyst Valters Smiltāns, and other team experts. The study they have drawn up includes a summary of data on the development of the Latvian capital market, an analysis of historical and current trends, as well as a specially developed Barometer formula – a methodology that makes it possible to assess the dynamics of market activity.

The research partner is the national news agency LETA, whose Head of Data Services Development, Ivars Svilāns, backed by a team of over 30 industry experts and data analysts, have conducted a qualitative and trustworthy analysis of media data. They have collated information on coverage of the capital market in the Latvian media space, offering insight into the shaping of public opinion and the development of capital market topics in the information environment.

The survey of financial sentiment among Latvian entrepreneurs was conducted in cooperation with the media agency Mindshare Latvia in April 2025. The survey involved 503 owners, managers, finance directors, and other leading specialists at Latvian companies, who offered their assessment of the financial situation, the availability of diverse financing, and the business environment over the last 12 months (from April 2024 to April 2025), as well as regarding development plans for the immediate future. In addition, the Barometer also includes survey data regarding entrepreneur sentiment from previous years, obtained in the period from 2021 to 2023, thus providing an opportunity to analyse development dynamics and long-term trends.

In order to have a strong capital market in the long term, it is necessary to change habits, switching from a short-term to a long-term view, and from caution to strategic action. This is not just about financial growth and economic prosperity; it concerns a change of values wherein capital market players play a decisive role. No instrument creates change of its own accord. It is created by people: entrepreneurs, investors, and policymakers, who are able to look beyond today's comforts, use data, and make bold and strategically sound decisions.

The Latvian Capital Market Activity Barometer is the first step in this direction – a tool that enables you to look at the market not fragmentarily, but systemically through data, trends, and perception analysis. It is a platform that will facilitate informed decision-making and determine the next steps along the path to development. The Barometer will be updated annually, providing a consistent assessment of the tempo and direction of capital market growth. However, the Barometer in itself is not going to change the market – it is up to us, as a society, to do that. In order for the capital market to evolve into a genuine platform for growth, we must bolster the understanding and trust of entrepreneurs, devise practical state support mechanisms that reduce risks and encourage potential issuers, provide simple and foreseeable regulation that does not generate bureaucratic obstacles, and build a positive information environment in which the media, experts, and companies speak a common language about development.

Latvia has considerable capital market potential – the demand exists, there is growing interest, and the political will is becoming more tangible. All that remains is to take action and use all the opportunities on offer in a timely and meaningful way.

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