TSE (Tallinn) Market Overviews

This week was rather successful at Tallinn Stock Exchange. The total change in stock market index was positive : 0.59 % and it was the only index from Baltic markets which was increased during the week. The biggest winners of the week were Trigon Property Development (TPD1T ), its stock value increased by 40%, Silvano Fashion Group (SFGAT) – increased by 11.11% and Tallink Group ( TAL1T) – incresed by 7.07%. Unfortunately, AS Viisnurk (VSN1T), Olympic Entertainment Group ( OEG1T) and Merko Ehitus ( MKO1T)  experienced fall in the value of stock : - 11.92%, -5% and -4.44% respectively. Total turnover turned out to be 15 858 935 Euro. The experts are concerned that the potential for development of Olympic Entertainment Group is underestimated in the long-run.

A vast growth of the stock value of Trigon Property Development (TPD1T) by exactly 40.0% during the last week is clearly an increase of a surten winner among the OMXT market. Namely, on 30th of November, TPD published its financial results of the 9 months of the year 2007, which showed that they had earned 0.28 € per share, and thus quite a low P/E, whereas the stock price ranges around 1.20-1.30 €. As the press has released statements which predict the market capitalization of TPD to reach hundreds of millions of euros by the end of 2007, the stock price is currently undervalued, hence the strong bullish behaviour is predicted regarding TPD1T. There are also rumours of declaring an emission of further shares, but whether this will occur or not, is decided on Wednesday, 12th of December.

As Viisnurk (VSN1T) was the worst performer of the week. The value of the stock declined 11.92%, from 1.93 to 1.70 euros. There were no announcements throughout the week. So, the reason for the decrease must be As Viisnurk’s 9 months results, which were announced on the 27th of November. Although the 9-months in general were slightly better than for the previous period, investors clearly expected more. However, the main reason for such a big drop, is that the 3rd quarter was much worse, than last year. The net profit was only 60 thousand euros, compared to 226 thousand euros last 3 rd quarter. Certainly, this says that something is wrong there. Actually, from the day the 9-months results were published the stock has decreased 22.7% already. As a recommendation, it is still not the right place to catch the bottom.

Tallink Group was in the center of media‘s attention this week.  The reason for that was the success of its stock, which increased from 0.99 euro to 1.06 this week, in total by 7.07%. Tallink Group was the third best winner this week. It decided to buy back its own stock for the sum of more than 7 million euro. This action showed that the the managers of the company are very confident in the financial success of Tallink Group, although this is the worst season for tourism and fuel becomes more expensive. The purchase of shares made a positive effect and investors liked this action. The turnover of Tallink Group was also the largest one : 4 472 496 Euro, as well at the number of deals : 722

By Maia Sokolova

Veiko Visnapuu