Estonian securities market in the third quarter of 2008

09.10.2008 TLN

Press release of NASDAQ OMX Tallinn Stock Exchange and Estonian Central Securities Depository of 9 October 2008

Slowed economic growth and more pessimistic forecasts have also affected the securities markets of Tallinn and the Baltic states. By the end of 3Q 2008, the NASDAQ OMX Tallinn stock exchange index (OMX Tallinn) had dropped to 471.39 points and the Baltic Benchmark index to 362.57 points. Compared to the same period last year, both indexes have lost nearly one-half of their value.

“Being part of the European and world economy, the Estonian securities market has not remained unaffected by these nervous times. Today, it is especially important that people clearly consider their investment objective – if it is long-term, then short-term fluctuations on the shares market should not be overestimated. The worst thing which one could do is to make decisions based on emotions,” said Andrus Alber, chairman of the management board of the NASDAQ OMX Tallinn Stock Exchange.

Within nine months of 2008, a total of 52 189 transactions in the amount of MEUR 533.87 were concluded on the NASDAQ OMX Tallinn Stock Exchange. According to the turnover, the shares of Norma, Tallink and Arco Vara changed owners the most, a majority of the transactions took place with the shares of Olympic Entertainment Group, Baltika and Tallink.

In connection with the division of AS Merko Ehitus (trading identification MKO1T), the business name of the company changed to AS Järvevana (JRV1T). On 11 August, 17 700 000 shares of new AS Merko Ehitus (MRK1T) were listed on the Tallinn Stock Exchange.

By decision of the Listing and Surveillance Committee, the listing of shares of Saku Brewery was terminated in the main list of the Tallinn Stock Exchange as of 20 September, because Carlsberg Estonia Holding OÜ acquired 100% of the shares of the company. Due to the termination of listing of Saku Brewery, the composition of the Baltic Benchmark index was adjusted in the third quarter.

On the NASDAQ OMX Tallinn Stock Exchange, two new bonds were listed on 12 September – 6500 ABC Group bonds with a nominal value of EUR 1000 and 10 310 SEB Bank bonds with a nominal value of EEK 10 000. Three new members were added to the Baltic stock exchanges: Finasta bank, Skandinaviska Enskilda Banken and Evli Bank Plc. Evli Securities left the membership.

The frequency of cross-border securities transactions has fallen in the Baltic States – the number of cross-border transactions between Estonia and Latvia has fallen by nearly one half, and the number of transactions between Estonia and Lithuania is lower by nearly one quarter compared to the same period last year. Within the first nine months of this year, 4475 and 42 817 securities transactions were made between Estonia and Latvia, and Estonia and Lithuania, respectively.

The volume of investment funds registered with the Estonian Central Securities Depository totalled MEUR 379 as of the end of the third quarter, of which MEUR 79 accounted for investments by private persons. Compared to the same period last year, investments by private persons have decreased by nearly one half (3Q 2007: EUR 169.8), at the same time the number of private persons who invest in the funds has fallen only 9% at the end of September compared to the last year, reaching 13 685 people.

The volume of additional pension funds has remained at the same level compared to the same period of the last year, reaching MEUR 62.8. The number of people joining the pension funds has shows a slight upward trend, with 48 780 people having joined the additional funded pension system. A total of 573 891 people have joined the mandatory funded pension system as of the end of September, the volume of mandatory funded pension funds was MEUR 800.

“This year, one month remains until the deadline for submission of applications for joining the funded pension system and changing a fund. We once again remind people that the selection of a fund must be based on the investment policy, risk level and charged fees of the fund, and it should be remembered that it is a long-tine investment,” Kristel Vanasaun, executive manager of the Estonian Central Securities Depository, commented on the current situation on the pension market.

As of the end of the third quarter, 6682 companies were registered with the Estonian Central Securities Depository, of which 4896 were public limited companies. The registration of private limited companies has slowed down a little compared to the previous quarters of 2008, 94 private limited companies registered their shares in the third quarter, a total of 1786 private limited companies had registered with the central register as of the end of September. The value of securities registered with the Estonian Central Securities Depository totals MEUR 7311.

NASDAQ OMX Tallinn Stock Exchange statistics by years (PDF)