Market Overview: NASDAQ OMX Tallinn 2011, wk.

11
The 11th week of the year in Tallinn market was an odd due to situation in Japan which made all the
markets shine in red and OMX Tallinn (OMXT) was not an exception. As we can see from the
graph (Figure 1), the index dipped by 7.56% until the end of Tuesday. However, this attracted
buyers who wanted to get some “cheap” stocks and from then on everything turned vice versa. The
OMXT index rose again by 9.4% from Wednesday and the week ended up with the soaring by
3.21%. The OMXT index closing value was 732.83 points last Friday and the last closing value
(18th of March) is 741.10 points.

Figure 1 Baltic market indexes in 11th week

Source: www.nasdaqomxbaltic.com

The best performances were shown by the companies Trigon Property Development (TPD1T)
and Järvevana (JRV1T), going up by 4.57% and 4.05% respectively. The greatest losers of 11th
week were Harju Elekter (HAE1T) and Arco Vara (ARC1T), declining 4.75% and 1.92%.
Overall, in the Nasdaq OMX Tallinn 4,315 deals were made and 5,760,614 securities have
changed their owners which resulted in turnover of 7,866,035.53 EUR.
Even though one of the leading real estate development companies Arco Vara (ARC1T) went
down a lot during the week (Figure 2), there are good news for its investors that were not yet seen
during the trading week. The companies’ associate attracted 11.4 million EUR for Tivoli project
development, which allowed the company to repay its SEB loan and receive 6 million EUR funds
for financing the construction. This funding makes it possible for the company to proceed with the
development of the Tivoli project and start the construction of a new residential area already in
autumn 2011. It is expected that these news will boost the confidence of the investors and raise the
price of the stock the following week.

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX Tallinn 2011, wk. 11

Figure 2 Arco Vara (ARC1T) in 11th week

Source: www.nasdaqomxbaltic.com

The group of construction companies AS Nordecon (NCN1T), which slightly shrunk by 0.29 %
and didn’t experience much fluctuation in 11th week (Figure 3), made a contract of 3.1 million EUR
with Järva County Vocational Training Centre that ensures the company to build a new student
dormitory and a canteen. This socially oriented investment is expected to raise the price of the stock
the next week or at least to contribute to the upward going trend of the stock in the long run as well.

Figure 3 Nordecon AS (NCN1T) in 11th week

Source: www.nasdaqomxbaltic.com

In the beginning of the week official news were spread that the company of media AS Ekspress
Grupp (EEG1T) and Vivarone OÜ agreed to restructure their present partnership in Eesti
Päevalehe AS. By this agreement, Vivarone OÜ will be the owner of the real-estate owned by Eesti

2 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: NASDAQ OMX Tallinn 2011, wk. 11
Päevalehe AS and AS Ekspress Grupp (EEG1T) will become a solo owner of Eesti Päevalehe
AS. In addition to savings, 100% ownership in Eesti Päevalehe AS will allow Ekspress Grupp to
better use its expertise while improving competitiveness of Eesti Päevaleht as a daily paper. Even
though these news were not able to make the stock resist the overall trend downwards in the
beginning of the week (it fell by 7.3% until Wednesday, Figure 4), restructuring is expected to help
the price of the stock go up in the long run.

Figure 4 Ekspress Grupp (EEG1T) in 11th week

Source: www.nasdaqomxbaltic.com

To conclude, the 11th week had both bearish and bullish moods; however, companies’ dividend
paying time is coming soon, which help the prices of stocks to go only up; thus, we will probably
face raising prices of stocks until the time the dividends are paid.

Review by: Oleg Demidov, Liudvikas Galvanauskas, Liene Putnina, Paulius Jurgutis

3 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.