Value of Tallinn companies down by EUR 1 billion in six mon

While companies paid out EEK 2 billion in dividends, their value has at the same time gone down by 15 billion kroons.

Tõnis Oja writes there is nothing strange since share prices are at the lowest level for the last three and half years. The last time that the Äripäev index that tracks the most traded stock prices in Tallinn was as low as today was in January 2005. TALSE, the official stock index of Tallinn Stock Exchange has not been so low since March 2005.

According to Oja, there is an interesting analogoue: six months after the stock market crash in 1997 the value of Estonian listed companies had also fallen by EEK 15 billion. This gives them reason to call it the second stock market crash, with the exception that share prices have been falling by more than half over 18 months.

This may be the final phase of the crisis and things can only get better from now on. There have been two optimistic events recently: the news that businessman Toomas Tool purchased EEK 50 million worth of Arco Vara stock and Danske Capital funds acquiring 6.7 percent of Ekspress Grupp. Notably, both share prices have fallen by more than 50 percent in the last six months.

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