QE could enliven Tallinn stock market, say experts (1)
Financial experts are hoping the European Central Bank's bond buying program could give the Tallinn stock market, where volumes have long been in decline, a 25-percent boost this year.
Kristofer Vähi, a stock market analyst at SEB, said the program will give markets around the world an injection of energy. “Why not on the Tallinn stock exchange. We have already seen a 13-percent increase on the Tallinn market this year, which is the third fastest in the world. Based on that a few dozen percent increase sounds realistic,” he added.
Swedbank is predicting a 24-percent increase this year. The bond program will see all Eurozone nations buy up bonds, with Estonia's share at three billion euros.
The program should weaken the euro and boost export-oriented companies. Marek Randma of Swedbank said the Tallinn stock market has few companies relying on exports, and growth will depend on what size companies will issue bonds.
Alo Vallikivi, head of stock brokers at LHV, said more companies, especially start-ups should join the stock market. He said LHV itself is also planning the move, but not in 2015.