“It’s buying panic on Tallinn stock exchange”

Share prices in Tallinn have been growing for eight consecutive days and OMX Tallinn Index is now at its highest level in 15 months, mainly buoyed by growing speculation that Estonia is on its way to the euro zone.

Yesterday’s Äripäev writes that the OMX Tallinn index has jumped 24% this year, making it the world’s best- performing equity market and extending last year’s 47% advance. In one year, share prices in Tallinn have increased 60%.

Some professionals already warn about overconfidence of investors. Mehis Raud, fund manager in Trigon, said that those investing right now in stocks for speculative purposes are taking a huge risk. “Markets have going up very rapidly and the results of companies and news from foreign markets may not be so strong,” he said. 

Raud warned that one should look out for companies with high debt because potential new share issues could dilute the value of holdings.

Raud said that the share price rally of recent days was buying panic. “On the one hand you have institutional investors who have revalued their risks and want to acquire large holdings before the euro decision comes. On the other hand you have local investors who are withdrawing deposits and investing them in stocks.”

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Value of listed companies grew 32 pct

The market capitalisation of the companies listed on the Tallinn stock exchange grew 32% during 2009 to 28.94 billion kroons.
During 2008, the companies’ market capitalisation dropped 2.93-fold to 21.96 billion kroons.
The star performer in 2009 was Harju Elekter, which saw the value of its share more than double.
Retailer Tallinna Kaubamaja soared 74%, builder Merko Ehitus 79% and Olympic 57%.
Losing the most, or 37% of its value, was the garment company Baltika.
The OMXT index put on 47.21% during the year to finish at 404.58 points. The Lithuanian market showed almost equal performance with a 46.04% rise in the index to 261.77 points.
The OMXR index of the Riga stock exchange moved up by just 2.82% and the joint Baltic index finished the year 37.83% higher at 314.42 points.
The total turnover of the Tallinn stock exchange generated in 84 547 transactions during 2009 was 4.17 billion kroons.

Source: Estonian Review

Government endorses sale of holding in Eesti Telekom

The Estonian government Thursday decided to give its consent to the sale of shares in Eesti Telekom at 93 kroons (EUR 5.94) per share.
Eesti Telekom has also convened a general meeting of shareholders in order to decide the payment of additional dividends of nearly 7 kroons per share.
It is also planning to endorse for three years a dividend policy according to which Eesti Telekom will pay out in dividends in the years 2010-2012 the whole net profit over the preceding period, the government communications office said.
In considering its decision, it was decisive that the Estonian state had no strategic interest of continuing as shareholder in Eesti Telekom and in 2009 the state would be paid more than four billion kroons, which would contract the loan need of the country and improve the government sector budget balance by 518 million kroons.
It is also important for the state to ensure in the next few years a guaranteed inflow of income tax that will be enabled by the agreed-on guaranteed dividend policy.
The Estonian government currently has a 24% and the Estonian Development Fund a 3% holding in Eesti Telekom.

Source: Estonian Review

Laar: Eesti Energia will be listed

Mart Laar, the chairperson of Pro Patria and Res Publica Union (IRL) said at the conference Business Plan that listing Eesti Energia has been decided, aripaev.ee reports.

“Officially not,” Laar answered to Meelis Mandel’s question if he heard correctly and Eesti Energia will be listed.

Source: BBN

Estonia will collect 3.5 bEEK from the sale of Eesti Telekom

The state will improve its budget balance by EEK 518 mln already this year, but not all small shareholders and analysts are pleased about the state accepting the offer, Äripäev reports.

Yesterday the Ministry of Finance announced that the state has agreed in principle to sell its holding in Eesti Telekom. The price for the holding would be EEK 93 per share plus EEK 964 million from the retained earnings as an additional dividend of EEK 6.99 per share of Eesti Telekom and approve a dividend policy to distribute profits retained during the business years 2009 till 2011.

“Dividends are very important for the budget balance. That’s why we agreed on extraordinary dividends, on which the state also gets income tax,” Jürgen Ligi, the Minister of Finance said.

Estonia will collect EEK 3.5 bln from the sale of Eesti Telekom.

“The income of EEK 3.5 bln will not improve the budget balance, but increases liquidity and saving on loan interests,” Ligi said.

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Kalev adopts new name – Luterma

The listed Estonian food and real estate group AS Kalev has adopted AS Luterma as its new business name.
The extraordinary general meeting of shareholders that endorsed the change also approved corresponding amendments in the statutes of association, Kalev told the stock exchange.
At Thursday’s general meeting 85.43% of the company’s registered capital was represented.
Oliver Kruuda, the majority shareholder of Kalev, has previously said the name change arises from the wish to leave the name Kalev fully to the confectionery factory that is part of the Kalev group.
AS Kalev earlier this week filed for delisting from the Tallinn stock exchange.

Source: Estonian Review

Starman delisted

On March 5, 2009, the Listing and Surveillance Committee of NASDAQ OMX Tallinn Stock Exchange decided to satisfy the application of Starman AS from January 22, 2009, and to delist its shares from the Main List of TSE starting from the next day after the Estonian CSD has transferred the minority shares to the majority shareholder – Baltic Moontech Investments Holding AS.

On February 25, 2009, the extraordinary general meeting of shareholders of Starman decided to approve the takeover of shares from the minority shareholders by Baltic Moontech Investments Holding AS against a fair monetary compensation in the amount of EEK 89,96795 (EUR 5,75) per share. After the takeover of shares, Baltic Moontech Investments Holding AS will be the only shareholder.

Source: BBN

Kalev filed delisting request

AS Kalev submitted on February 23rd, 2009 to NASDAQ OMX Tallinn Stock Exchange an application for delisting AS Kalev shares. 

Management estimated that failure by Alta Capital Partners to execute food industry enterprise sales agreement concluded on 2007 to AS Kalev does not allow to execute business plans planned on fall 2007. Amongst other things AS Kalev does not see the opportunity to comply with freefloat requirement set by the rules of Tallinn Stock Exchange.

Resolution on satisfying or rejecting the delisting request will be made by Stock Exchange within three months as of submitting application of delisting request, by exception of the rules of Tallinn Stock Exchange resolution may also be made during six months.

Source: BBN

President visits stock exchange

“In Estonia, a way out of the current economic recession is being sought. Therefore, Estonia requires a long-range view of the future, a vision of the steps that will bring us closer to achieving our goals,” President Toomas Hendrik Ilves said today while visiting the Tallinn Stock Exchange and meeting with members of the management. “New ideas and innovative approaches are the solution. Our people are resourceful, but often the realisation of ideas can be hindered by a lack of enterprise or money. We should be bolder in coming out with new ideas and introducing them to others. In this way, by finding allies and partners, we can arrive at solutions,” said the head of state. Andrus Alber, the chairman of the management board of the NASDAQ OMX Tallinn Stock Exchange, added, “The Stock Exchange and the Central Depository for Securities are continually developing new products and services for our companies and investors. The Tallinn Stock Exchange’s participation in the NASDAQ OMX Group provides Estonia with knowledge and experiences from the world’s largest markets. I hope that our entrepreneurs know how to profit from the advantages that this provides.” President Ilves became acquainted with the Tallinn Stock Exchange’s idea for an alternative market. First North, an alternative market of the NASDAQ OMX Tallinn Stock Exchange, operates simultaneously with the regulated markets in the Baltic countries. It was created specifically to cater to the needs of small- and mid-sized businesses. The alternative market provides good ideas and new financing opportunities for small businesses. It also provides investors with the opportunity to participate in the rapid development of future businesses.
“I believe that the creation of an alternative market is beneficial for the entire Estonian economy. It provides an opportunity for small companies to take in additional capital and to expand,” noted the head of state.

Source: Estonian Review

Stock exhange market dropped by 60 percent in 2008

On the securities markets, last year will be marked by a global financial crisis. Pessimism reached the securities market earlier than in the real economic statistics, resulting in a more than 60% drop in stock exchange indices (OMX Tallinn -62.98%, Baltic Benchmark Cap GI -66.69%). The annual turnover of NASDAQ OMX Tallinn Stock Exchange was MEUR 618 at 77 265 transactions. The average value of a stock transaction was EUR 7997.

The largest stock exchange group in the world, which was formed last year as a result of the merger of NASDAQ and OMX, launched the trading environment NASDAQ OMX Europe in September, which is based on the technology platform of NASDAQ OMX; at the end of the year, the information transfer services of the Nordic and Baltic stock exchanges were joined under the trademark GlobeNewswire. Since January of this year, the price information of the stocks listed on the Baltic stock exchanges of NASDAQ OMX can be observed in real time and as of February, the Baltic stock exchanges will extend their trading period by two hours. As a result of the integration process, the business name of Tallinn Stock Exchange was changed – as of December 2008, it is NASDAQ OMX Tallinn.

At the contest Baltic Market Awards, which took place for the third year in a row, the Baltic stock exchanges of NASDAQ OMX identified the publicly traded company with the best investor relations in the region, which in 2008 was SAF Tehnika; SEB Bankas was nominated as the best member of the stock exchange. Of the companies listed on the Tallinn Stock Exchange, Baltika was recognised as the best. At the end of last year, Tallinn Stock Exchange launched the book “Väärtpaberite teejuht” in order to raise the awareness of people, which was a sequel to the investment textbook “Investeerimise teejuht” published in 2007. Similarly to last time, this book will also be presented to all Estonian upper secondary schools, universities and libraries as a gift, so that investment related materials would be available for all interested people.

As a result of the division of AS Merko Ehitus, the shares of AS Järvevana, a new issuer, were listed in the main list of Tallinn Stock Exchange in 2008. In relation to the takeover bid of AS Carlsberg, AS Saku Õlletehas was removed from the main list of Tallinn Stock Exchange on 20 September 2008. In 2008, Instinet (UK), Finhill (Lithuania), SEB AB (Sweden), Bankas Finasta (Lithuania), and Evli Bank (Finland) became members of the Baltic stock exchanges; Ukio Bankas (Lithuania) became a pan-Baltic member and Nordnet (Rootsi) and Evli Securities (Estonia) ended their membership. As of the end of the year, the Baltic stock exchanges had 42 members.

Trade in the Baltics also showed signs of slowing down; the number of transactions dropped by almost one fifth during the year. A total of 69 470 cross-border securities transactions were made between Estonia, Latvia and Lithuania. In addition, 132 transactions were made between Estonia and Poland. The cooperation agreement between the Estonian Central Securities Depository and the Polish Central Securities Depository was entered into in July 2007.

As a result of the global financial crisis, the volumes of investment funds also decreased. As at the end of 2008, the volume of investment funds registered in the Estonian Central Securities Depository was MEUR 257.6, of which MEUR 47.4 was made up of investments by private persons.The volume of additional pension funds dropped compared to the previous year, but the number of new joiners increased at a constant pace throughout the year. As at the end of 2008, 49 861 people had joined the additional pension funds.

As at the end of the year, 6666 companies were registered in the Estonian Central Securities Depository, of which 4842 were public limited companies. In 2008, the number of private limited liability companies in the Estonian Central Securities Depository increased by 262; there were 1824 private limited liability companies registered in the Central Registry at the end of the year. The value of the securities registered in the Estonian Central Securities Depository is more than BEUR 6.1. 

 Source:  Press release of NASDAQ OMX Tallinn 14.01.2009

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