Tallinn Stock Exchange goes into hibernation16.01.2012, 11:37
“Foreign investors have stopped buying local stocks, there is no market for stocks or bond and local pension funds play a marginal role. It’s like Central Africa,” says Sven Kunsing from the asset management arm of SEB.
Andrus Alber, CEO of NASDAQ OMX Tallinn, agrees that the situation looks bad. The turnover of the Tallinn Stock Exchange in 2011 was the smallest in the last 15 years.
Kunsing and Alber believe that there are two possibilities to breathe new life into the stock market: list minority shareholdings of large Estonian state enterprises and increase the investments of local funds on the stock market.
“In average, in Western Europe, pension funds have invested about 60 percent of their assets in local stock market. In Estonia, the share is 6 percent,” says Alber.