TSE (Tallinn) - Estonian Stock Market overview

Tallinn Stock Exchange was quite negative this week. The index fell by 4.04 % in a simple downwards trend. Uncertainty in the world markets were probably reflected with pessimistic mood against Estonian companies.The biggest and almost only winner was Järvevana (JRV1T) with 5 % increase in the stock price. Among the biggest losers were the Harju elekter (HAE1T) with a 5.6 % decline, also Viisnurk (VSN1T) was down to 0.92 per share, from 0.99. Tallink Grupp (TAL1T) had the biggest activity during the week, trading 811,593 securities.

This week Kalev’s (KLV1T) share again fell by 8.4%, as the company consolidated annual report was published. The stock has followed falling trend from the beginning of September. The report was not very comforting either, even though the  profits were up compared to 2006/2007 year, still the proportion of current liabilities on the firm’s balance sheet had increase. This could forecast trouble in Kalev’s future cash reserves to keep the firm running.

Tallink Grupp was surprisingly stable during this week. With 811,593 stock transactions the stock price remained on the same level. It seems that after the latest falling period which started at the beginning of november, the stock price has now stabilized around 0.33 per share. Announcement about Tallink’s passengers was released and it showed 19% increase in passenger volumes compared with november 2007.

Our winner this week Järvevana went up to 0.21 from 0.18, small change but bigger then other. This really reflects the moods in the market. But this also a relief from a long lasting fall in the share price of Järvevana. On 28th November the financial results up to third quarter of 2008 was released. The profit remained almost as big as it was in the 2007. As it is said in the report,the company is not currently active, and the profit since august is created by investing liquid assets. Järvevana is also seeking the termination of the criminal suspicion on the firm to continue normal operations.

Overall, the mood is terribly pessimistic. The weekly winner was a firm which has one employee and which does not operate normally. This reflects the cautiousness of investors. Only grim future is in the minds of investors. One of the rays of light could be Tallink’s share, which may have found its floor.