Following the 2.9% Baltic Benchmark decline in Sep-Oct, Nov. was strong with a gain of 2.8% as Artea Bank, Infortar, and KN Energies posted double-digit gains. However, the Nov. Advance/Decline ratio (rising/falling stocks) of 0.8 shows the market’s gain was not broad-based. Overall, 2025 appears to be a constructive year with the Baltic Benchmark +14% year-to-date (as of 2 Dec.). This year’s winners among tradable stocks are Akola Group (+54%), KN Energies (+48%), and Merko Ehitus (+35%). With the Baltic Benchmark Index 50-day MAV just 1% below the 200-day MAV, we reiterate our “Positive” Baltic market outlook, mainly based on valuation. Our Overall Top pick list (3 stocks) is up 32% while our “Stable dividends” Top picks list (3 stocks) is up 45%. With this said, we switch 2 out of 3 names in both lists as we think some stocks need to consolidate after stellar gains and we see compelling new overlooked cases for 2026 (since 2023, we have only made two changes to our top pick lists). From a sector perspective, we like banks as interest rates seem to stabilize at current levels and retail bond investors are happy to take over non-performing loans i.e., the bank’s loan impairments might not be as bad as we feared (might even see reversals). From a country-perspective, we favor Lithuania who seem to do everything right, while Estonia is doing the opposite. Furthermore, the Lithuanian pension reform might trigger a rally in Lithuanian stocks (likely 30-50% of the pension savers will take their money out either to invest themselves or to spend it). See this Premium article for our 2026 Top picks.