Estonian Stock Market

Estonian Stock Market

* Although the number of companies listed at the Tallinn Stock Exchange (OMX Tallinn) is the smallest, practically all of them are included on the Main List.

* Similar to the other Baltic countries, the stock exchange was an important instrument in the privatization of state and municipal companies. The Central Securities Register was established in 1994, whereas in 1995, ten banks, nine brokerage companies and several Estonian authorities (the Bank of Estonia, the Economics Ministry, the Compensation Fund) established the Tallinn Stock Exchange, which commenced operation in 1996 offering the shares of eleven companies.

* In 2005, the Tallinn Stock Exchange had a record turnover of EUR 1.9 billion thanks to Hansapank’s exit from the regulated market. However, already the next year, turnover fell by 63%.

* Over the past 20 years, there have been many companies listed on the Estonian stock exchange, however, unlike the stock exchanges in Latvia and Lithuania, Estonia placed the emphasis on quality rather than quantity – there are fewer issuers, but the shares are of high quality (good corporate governance, shareholder structure favoring growing turnover, transparency, etc.).

* Companies – including major banks – were only leaving the Tallinn Stock Exchange for seven years until 2005, when municipal water supply company Tallinna Vesi shares were listed at the stock exchange. Since then, several companies have used the Tallinn Stock Exchange as a platform to heighten resources, including media company Express Grupa, real estate company Arco Vara, shipping company Tallink Grupp, casino and gambling operator Olympic Entertainment Group. In 2013, for the first time, two companies, including an Estonian company (Telescan), were included on the NASDAQ OMX’s First North alternative market list for smaller companies and growth companies, but in 2015 Estonian food producer Linda Nektar was included on the First North list as well.

* In 2016, just one company had its shares listed at the stock exchange that originally entered the bourse in 1996 – Tallinna Kaubamaja.

* At this time, shares in these and other companies listed at the stock exchange belong to strategic as well as financial investors. In tandem there are many minority shareholders, each owning under 10%, which ensures higher free float or number of shares in circulation, and thus, companies are more attractive for the active sale of their shares.

* Further development of NASDAQ OMX Tallinn will also depend on the alternative securities list First North created by the Baltic stock exchanges a few years ago for small and medium-sized enterprises.

Facts 2016

* In 2016, the companies listed on the Tallinn Stock Exchange saw their prices move different ways – some stocks rose while others fell. The steepest decreases were recorded for clothing group Baltika (by 17.25%) and real estate developer Pro Kapital Grupp (by 12.11%).

* Lingerie maker Silvano Fashion Group showed the steepest rise – by 131.25%. Retailer Tallinna Kaubamaja Group also showed good results, growing by 22.11% in 2016.

* In 2016, the most trades – 10,414 – were registered with shares in gambling operator Olympic Entertainment Group with a total turnover of EUR 36.42 million. Shipping company Tallink Grupp boasted the biggest turnover on the stock exchange last year at EUR 61.03 million made in 9,204 trades.