TSE (Tallinn) Market Overviews

Esto1nian Stock Market Overview
27/02/2006-03/03/2006

Spring came, but no one feels that when they are outside. Nevertheless, investors and traders decided to find where spring is and left investing and trading issues in hands of destiny. So this week Estonian Stock Market experienced a fall in overall turnover; it was equal to €9,487,351.14. On the other hand, those who left in market should be happy enough, because OMX Tallinn index rise up from 653.22 to 660.50 by 1.11%. Reason for that should be that the prices of 8 stocks went up, when only 4 fell down, and 3 stayed at their previous positions. Surprisingly, but this week AS Tallink Grupp (TAL1T) wasn’t so much in front of others when comparison factor is turnover. AS Baltika (BLT1T) and AS Eesti Telekom (ETLAT) had similar turnovers and this triplet practically took all turnover of the week.

The only producer of medications in Estonia is AS Tallinna Farmaatsiatehas (TFA1T), which offers full range of quality medicines. Unfortunately, this week the value of the shares has decreased by 2.86%. Maybe Estonians started to ill less and less; therefore last week Tallinna Farmaatsiatehas reported 25% fall in annual sales. This substantial decrease was a strong reason for investors to react in the way which conditioned diminishing price of shares. It is not advisable to invest into this company, because trend goes down with strong fluctuations.

AS Viisnurk (VNU1T) is a multibusiness wood processing company with over half a century of experience in adding value to wood. The company has concentrated on export markets. This week it reported unaudited financial results for 2005. This action rocketed up the price of shares. Even 9.96% increase has been noticed. Expectations of investors became higher. After loss in 2004, AS Viisnurk showed in the financial results that 2005 it had 0.6 mill profit. What’s more the company prognoses that this year it will have even bigger profit. There are no reasons to not believe, so AS Viisnurk is attractive for investors. However, they should wait while the boom of unaudited financial results will be not escalated.

The only one company from Baltic Main list which will be reviewed this week is AS Merko Ehitus (MKO1T). The reason for that is 1.74% increase in stock value. This company works in construction field. The news that Merko Ehitus has begun LVL 4.4 mln project, called Skulte port, Skultes Kokosta, in Latvia, reasonably changed the price of shares and activity of traders. Unluckily, when it seems to be a right company to invest with news like last one coming from it, in the long run the trend of this company’s shares’ price has been moving down for several years


By Linas Liktorius