Extract from the 1998 guide to central and eastern European equities
Despite the negative effects of the financial turmoil in emerging markets as a result of the economic meltdown in Asia, the Tallinn Stock Exchange (TSE) still enjoyed a successful year in 1997.
Boosted by Estonia's impressive economic performance, which earned the country Baa1 and BBB+ ratings from Moody's Investors Service and Standard&Poor's respectively, in 1997 the TSE's headline TALSE index recorded a 65% increase for the year in both local currency and Deutschmark terms, closing on December 31 1997 at 265.35, from 162.5 as at January 1 1997.
At one point in August the TALSE tested the 500 level, but then fell back sharply on the back of an emerging-market sell-off which hit all the Baltic markets. In 1998 the TALSE is forecast to reach at least the 450 level which equates to at least a 50% rise.
Some 11 new stocks were listed in 1997 and in 1998 a number of major new additions are expected, including Estonian Shipping Company, Estonian Insurance and Estonian Telecom.
These new listings are expected to boost the total market capitalization from $1.08