Last year, the securities markets in Tallinn and the Baltics saw a lot of activity. Consolidation of the Baltic securities markets continued, which resulted, among other things, in new and coherent indexes, joint membership, and the Alternative Market that will be opened this year. As developments this year, the stock exchange sees the implantation of corporate governance, enhancement of investor education, an increase in the efficiency of supervision and the entry of new, rapidly developing enterprises to the stock exchange.
In 2006, the inflow of new enterprises to the Tallinn Stock Exchange continued. A successful issue of shares was made by Eesti Ehitus and Olympic Entertainment Group, the prices of both enterprises had increased more than 80% by the turn of the year. Rakvere Lihakombinaat left the stock exchange. The Tallinn Stock Exchange index OMX Tallinn rose to a historic high – 856,27 points (annual growth of 29%). The new Baltic reference index – OMX Baltic Benchmark (OMXBBGI Capped) – saw an annual growth of 17% (665,78 points).
"Even though numbers show a positive trend, scandals connected with publicly traded companies also left their mark on history last year. We should not forget that publicly traded companies and affairs related to them are always visible. These are observed and followed. Unfortunately, negative examples are also infectious. We see our role in improving cooperation with market participants, raising wise and judicious investors and promoting saving to guarantee a secure future," said Kaidi Ruusalepp, Chairman of the Management Board of Tallinn Stock Exchange.
The number of securities accounts registered in the Estonian CSD rose to 103 302 last year (annual growth of 18%) and the number of stock exchange transactions increased 52% (62 893 transactions, as compared to 41 291 transactions in 2005). A total of 3 788 investors made at least 5 stock exchange transactions (growth of 55%). The turnover of the stock exchange in Tallinn last year was 766.2 million euros.
For the second year in a row, trading inside the Baltics is marked by a considerable growth in activity. The number of cross-border transfers of securities between Estonia and Latvia almost doubled last year (4 703) and the number of transfers of securities between Estonia and Lithuania was more than three times higher (21 309) than in 2005.
The percentage of private persons in stock exchange trading has increased. A pronounced indicator of this is the decrease in the average size of a stock exchange transaction by almost 75% (average stock exchange transaction in 2005: 47 002 and in 2006: 12 182 euros). Estonians’ increased interest in investing is also manifested in the placement of money in funds. The volume of investment funds registered in the Estonian CSD was 605 million euros, as of the end of 2006, of which 163 million was made up of investments by private persons. By the end of 2006, 14 827 private persons had invested in funds, which was 30% more than the year before. A total of 114 funds have been registered in the Baltic Fund Centre.
"The unexpected prosperity and continuous high economic growth is, to a great extent, due to the higher incomes of households and the resulting increased consumption. We should keep in mind, however, that things do not always go so well, and thus the state should encourage the initiative by private persons’ to secure their future, for example, by making long-term investment income tax free," Kaidi Ruusalepp added.
As of the end of the year, 6 337 enterprises were registered in the Estonian CSD. The number of registered public limited companies remains stable (5 175 registered), but the registration of private limited companies (1 162 registered) indicates a strong growth. The registration of a private limited company in the central register of securities enables the performance of purchase and sale and pledging transactions more comfortably, and on more favourable terms, without notarial operations. The value of securities registered in the Estonian CSD is more than 9 billion euros.
