TSE (Tallinn) Market Overviews
Estonian Stock Market Overview20/02/2006-24/02/2006
It is sad to look at this week’s Main-list trade on Tallinn Stock Exchange – six of the companies saw their share value go down, two experienced no changes, and, like two weeks ago, only one increased. On the contrary, a much nicer situation is in the I-List, where five stocks went up, and AS Kalev (KLV1T) had again a substantial fall in value. The Main List’s poor performance could not avoid influencing the OMX Tallinn index, which decreased by 0.30% to 654.59; the change was so small due to the fact that AS Eesti Telekom (ETLAT), the only stock to have risen, was also the turnover leader this week with a huge trade turnover of €22,353,879.90, by far outperforming AS Tallink Grupp (TAL1T).
Two good news from AS Eesti Telekom (ETLAT) defined its two share value rises in February, namely the Q4 2005 financial results showing net profit growth of 9.5% over the year, and the announcement made by Elion Enterprices AS and AS EMT (100% AS Eesti Telekom subsidiaries), introducing new services for corporate customers. This Bundled Solution, targeted mainly for small and medium businesses, offers an integrated set of telecommunication services with high cost controllability, and is predicted to raise the number of corporate clients as well as the level of customer satisfaction. The abovementioned facts helped the company to stay on a rather fluctuating, but definitely upward-going trend not only this week, but during the whole month.
AS Baltika (BLT1T) published its 2005 financial results this week, which show that its profits grew dramatically over the previous year, more than quadrupling from €956,000 to €4,262,000. Such outstanding performance, however, did not seem to be sufficient to the investors, because the share value fell by 3.97% this week. This first market reaction may not become a long-lasting direction, as the stock already started recovering at the end of the week.
It is worth mentioning AS Kalev (KLV1T), as it was the only one from the I-List to experience a fall in its share value (-2.61%) this week. Such declining trend has been continuing from the middle of January. The acquisition of 31% of shares of Valmetek Invest AS by AS Kalev Paide Tootmine (AS Kalev’s full subsidiary) on Wednesday made the share value go up, but even this could not prevent the overall week’s result from being negative. It can be said that the company’s performance does not correspond with the expectations of its stakeholders.
By Andrii Shekhirev
