This year, the Estonian government issued bonds targeted at retail investors for the first time. Among the 7,300 buyers, there were certainly some entering the securities market for the first time. The offering of retail bonds was oversubscribed by a factor of four.

"When you look at the stock market statistics, trading is relatively active, I'd say. The last time I checked, the turnover for this bond was over €2 million," said Janno Luurmees, head of the State Treasury at the Ministry of Finance.

"We will certainly issue more bonds, as the state will have funding needs both next year and the year after. However, we have not yet decided on the specific instruments we will use," he added.

Analysts, however, believe there could have been even greater interest in government bonds, given that €12 billion is sitting in household savings.

Overall, it was a poor year for Nasdaq Tallinn. The OMX Tallinn GI posted a negative return of nearly 2 percent, while the alternative First North market saw a 9 percent decline. Only nine stocks on the exchange achieved a turnover exceeding €10 million.

"Not great. To be honest, we're essentially back at pre-pandemic levels. Looking back, in 2020 there was a dual effect. First, banks waived transaction fees for stock trading. Second, the pandemic wave encouraged people to save and invest, leading to extensive stock market activity. Now, we've reached a point where all those peaks have been erased," explained Valeria Kiisk, a partner at Redgate Capital.

Lithuanian energy and banking stocks performed significantly better this year.

"Ignitis Group had quite a good year, whereas Enefit Green's performance was considerably weaker. Lithuania's Šiauliu Bankas delivered stronger results than Coop Pank and LHV Pank in Estonia. As for maritime-related stocks, both Tallink and the Port of Tallinn had weaker results this year. The Port of Tallinn, for instance, has delivered virtually zero returns," noted Peter Priisalm, head of investments at Avaron.

The stock exchange also lacked major initial public offerings (IPOs) and foreign investor interest in Estonia remains low, Kiisk observed.

"The stock market acts as a forward indicator, typically reflecting conditions a year to a year and a half ahead of the economy. This would suggest that if the stock market remains stagnant, our economy could stay in the same situation for another two years. I'd like to believe that won't be the case," Kiisk added.

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