OREANDA-NEWS. January 10, 2007. Last year, the securities market was characterised by active trading. A significant event was the establishment of the alternative market "First North" in the Baltic States and the launch of the investor education programme "Invest Mentor" in Estonia, reported the press-centre of Tallinn Stock Exchange.

To increase the attractiveness of the market, the trading rules of the Baltic stock exchanges were brought into conformity with the requirements of the Markets in Financial Instruments Directive (MiFID), which creates significant advantages in performing securities transactions.

"2007 was an extraordinary year for the Tallinn Stock Exchange. On the one hand, we saw the stock exchange index drop after 8 years. At the same time, four times as many transactions were performed on the stock exchange than during the previous four years combined. Considering future development, two other important developments must definitely be pointed out. Firstly, the preparations for opening the alternative market "First North" as a completely new market segment were completed. Secondly, we launched the investor education programme "Invest Mentor", in the course of which, among other things, the first investment textbook in Estonia was published and the investment trade fair tradition was relaunched,” said Andrus Alber, Manager of the Tallinn Stock Exchange.

In 2007, the number of exchange transactions increased by 127,2% (142 921 transactions, 2006: 62 893 transactions). The proportion of private persons in exchange transactions kept increasing in Estonia, indicated by a decrease in the volume of an average transaction by up to 14% (average exchange transaction in 2007: 10 677 Euros and 2006: 12 182 Euros). The turnover of the Tallinn Stock Exchange was a record-breaking 1,526 billion Euros.

Last year, shares of a new publicly traded company established as a result of the division of Ekspress Grupp, Arco Vara and Viisnurk were listed in the Main List of the Tallinn Stock Exchange. Tallinna Farmaatsiatehas was removed from the stock exchange list. In 2007, the OMX Tallinn Stock Exchange index increased to the highest level in the history of the Tallinn stock exchange – 1043,29 points, ending the year at 742,45 points. The Baltic benchmark index OMX Baltic Benchmark Gap GI reached 608,89 by the end of the year. 7 new companies were added to the list of Tallinn Stock Exchange members last year – JSC FBC Jusu Tarpininkas, AS Norvik Banka, AS Baltic Trust Bank, Trasta Komercbanka, DnB NORD Bankas AB, Bankas Snoras AB and Svenska Handelsbanken.

The most outstanding publicly traded companies in the Baltics were recognized within the framework of the "Baltic Market Award 2007", which took place at the end of the year. Out of almost 70 applicants, the Lithuanian company TEO LT was selected as the publicly traded company with the best investor relations in the Baltics, and Hansapank as the best stock exchange member. In addition to this, Tallinn Stock Exchange, in cooperation with Estonian universities, awarded a prize for the best student work on the topic of the securities market.

There has been a notable increase in trade within the Baltics. More than twice as many cross-border transfers of securities were performed between Estonia and Latvia in 2007 (10 600 transactions) and almost four times as many transfers of securities between Estonia and Lithuania (78 205 transactions) than in 2006. The activation of cross-border transactions in securities was facilitated by the possibility of the members of the Baltic stock exchanges and central depositories to settle transactions versus payment outside the stock exchange, in addition to exchange transactions. With this, the depositories of the Baltic States provide a full solution for the transnational settlement of securities.

Similarly to the trend over the last few years, investments into funds continued. As at the end of 2007, the volume of investment funds registered in the Estonian Central Securities Depository was 641,7 million Euros, of which 156 million was made up of investments by private persons. At the end of 2007, there were 15 060 private persons who had invested in funds. The number of securities accounts increased to 125 910 (ca 20% increase) in the year.

"The investment activity of Estonians continues to increase. The number of exchange transactions took a record-breaking leap – when compared to last year, the number of exchange transactions in Estonia and cross-border transactions increased by more than two fold. In 2007, more new securities accounts were opened than in 2005 and 2006. Again, great attention was paid to long-term investments and ensuring one’s old age. In order to keep people interested in investing in the future as well, the equal treatment of physical and legal persons when taxing investment income must be guaranteed," said Kristel Johanson, Managing Director of the Estonian Central Securities Depository.

As at the end of the year, 6608 companies were registered in the Estonian Central Securities Depository. The number of registered public limited companies remained stable (5046 registered), whereas the registration of private limited companies has increased (1562 registered, annual increase of ca 25%). The registration of a private limited company in the Estonian Central Register of Securities allows to make purchase, sale and pledging transactions in a more comfortable and remunerative manner, without any notarial operations. The value of the securities registered in the Estonian Central Securities Depository is more than 9,3 billion Euros.