Estonian securities market in the third quarter of 2010
05.10.2010, Quarterly commentary by NASDAQ OMX Tallinn
The NASDAQ OMX Tallinn index increased to 603 points in the third quarter, rising 16.0% within three months and 49.1% compared to the beginning of the year. Thirteen companies increased their value, five of them by more than 25%. The largest growth was demonstrated by Silvano Fashion Group (71.3%) and Ekspress Grupp (69.0%). The market value of the companies on the Tallinn Stock Exchange increased by 9.8% during the quarter, to EUR 1.45 billion.
In September, the new issues of the shares of two listed companies – Baltika and Olympic Entertainment Group – were quoted on the stock exchange. The share capital of Baltika increased by 47.5% during the private placement carried out in June.
In August, the membership of HQ Bank AB, a stock exchange member from Sweden, in NASDAQ OMX Tallinn Stock Exchange ended. At the same time, Citadele banka became a member of Tallinn Stock Exchange instead of Latviani Parex banka.
Cresco Väärtpaberite AS and AS Redgate Capital were added to the list of advisers of First North alternative market in September and at the beginning of October, respectively. There are altogether 18 advisers in the alternative markets of the Baltic States, of whom eight provide their services in Estonia: Law Office of Aare Raig, Law Office Lepik & Luhaäär LAWIN, Law Office Sorainen, Cresco Väärtpaberite AS, Deloitte Advisory, Redgate Capital, SEB Enskilda and Swedbank. In October and November, NASDAQ OMX Tallinn Stock Exchange will be organising seven free-of-charge seminars, in six Estonian cities, to introduce the alternative market – new financing possibilities to ensure the development of companies.
The Estonian Central Securities Depository provides free-of-charge advising to registered public limited companies and private limited companies in matters related to the conversion of share capital into euros (Euro information phone: 640 8888, e-mail: firstname.lastname@example.org). The company also has the corresponding calculators at its disposal, which are available with other additional information at www.e-register.ee/euro.
The EPI index reflecting the average return of the funded pension funds increased to 140.8 points by the end of the third quarter, growing by 2.7%. The volumes of funded pension funds increased by 3.7%, reaching EUR 1.03 billion, which is 12.6% more than in the 3rd quarter of the previous year.
In September, the choice of funded pension funds was complemented by new fund ERGO Pension Fund 2P3. The new pension fund has an aggressive strategy that allows up to 75% of its assets to be invested in equities and equity funds.
The EPI-75 index reflecting the return of the aggressive funds increased to 109.4 points (+6.9%) by the end of the third quarter. The index of aggressive funds increased the most among the funded pension EPI indices, reflecting positive disposition in the economy and the increase having taken place in the share markets.
Applications for changing the second pillar pension fund of the funded pension can be filed until the end of October. In comparison with the 2nd quarter of the year, the number of applications for changing the funded pension funds and directing contributions to a new fund was 20% larger in the 3rd quarter. Activity has also increased significantly compared to the previous year – the number of applications for changing the fund is 38% larger and the number of applications for directing the contributions is 50% larger compared to the 3rd quarter of 2009.
The Estonian Central Depository for Securities advises you to actively monitor your investments and not to passively go along with changes:
- weigh your different options thoroughly;
- do not rush to change your decision based on any campaigns you may have heard or seen;
- compare different funded pension service providers and their experience;
- compare the service fees of pension funds, not only their historical return;
- take into account that changing a fund is never a free-of-charge service.