TSE (Tallinn) Market Overviews
Estonian Stock Market Overview28/11/2005-02/12/2005
With the beginning of winter comes the feeling of Christmas. That can also be felt in Estonian Stock Market, as the values of 9 stocks went up this week, two companies even made about a 10 percent increase: Saku Õlletehas (SKU1T) with a significant 11.50% rise and Kalev (KLV1T) with an increase by 10.00%. However, stocks of 4 companies faced a decrease in value; in addition, stock value of 1 company didn’t change. The week’s overall turnover was € 6,117,480.54. Tallinn OMX index rose by 0.33% from 676.93 to 679.15.
Maybe many Estonians decided to buy many bottles of beer produced by the biggest and oldest brewery in Estonia Saku Õlletehas (SKU1T) this week, as the value of stocks increased by 11.50%. To be serious, it is not a phenomenon of the past week, but of the entire year, as the company’s profits grew by 43% compared with 2004. Investors were pleased when they saw the financial report for the third quarter of this year, causing the stock value to rocket on Thursday morning. As long as men are men, there is stable demand for beer; it is only a question who will take a leading position in the industry. Stock value of Saku Õlletehas depends on how competitive it is in the market. From the past results it can be seen that the company eventually catches the wave, and something similar can be expected in the future.
Kalev (KLV1T) faced a 10.00% increase this week. The rise could be explained by three different effects. Firstly, Christmas season is the best time for confectionery industry in which Kalev operates, therefore it is expected that Kalev will make bigger profits in this period. Secondly, this week financial results for the third quarter were announced, showing 3 times bigger profit compared with the same period last year. Finally, investors presumably expect that the company’s shares are undervalued, thus not expecting any further falls. Eesti Telekom (ETLAT) made the biggest turnover (€ 1,539,014.53) this week. Unfortunately, the value of stock decreased marginally by 0.9%. This happened as a consequence of the end of the trading boom caused by the purchase of MicroLink. Moreover, this week the Estonian Communications Board decided to declare EMT, a 100% subsidiary of Eesti Telekom, a significant market power (SMP). This will result in the reduction in prices, forcing telecommunication companies to receive fewer profits. Nevertheless the shares of Eesti Telekom are still attractive to investors because the company has a significant share of Estonian telecommunication market.
By Linas Liktorius
Andrii Shekhirev
