Observer Eesti Oü

WEEK 43rd 2003

Friday, 24th of October, 2003

Increase of rating would be a good sign
On Wednesday, rating agency Fitch Ratings Estonia raised the outlook of Estonia's foreign currency rating from stable to positive. This might be good news for the local stock exchange. Time has proven that after the raising of rating's outlook, the rating will soon change. Currently, the rating of Estonia's foreign currency remains on A-. Increase of rating would make Estonia's foreign loans or issued bonds more trustworthy in the eyes of foreign investors.

Thursday, 23rd of October, 2003

Fitch to revise Estonia's foreign currency rating
On Wednesday, International rating agency Fitch Ratings raised the outlook of Estonia's foreign currency rating from stable to positive.
(Eesti Päevaleht)

Wednesday, 22nd of October, 2003

Sale of housing loans up
Major banks doubled the amount of housing loans issued in the 3Q compared to last year.
Hansabank set this year's sales record of housing loans and leasing in the 3Q. Compared to respective time period last year, the sale of housing loans and leasing increased by 40 percent in Hansabank.
Ühispank's sale of housing loans increased more than two times in the 3Q compared to last year.

Industrial production on the rise
According to the data corrected by the amount of workdays, production of Estonian industrial enterprises in September increased by 9.7 percent compared to last year.
(Eesti Päevaleht)

Hotel construction boom to create new jobs
New hotels of Tallinn that open doors this and next year, will increase the number of tourists staying at hotels and create hundreds of new jobs.
According to Tarmo Bachmann, sales director of Reval Hotel Group, 900 new hotel places will accrue to Tallinn next year.
The greatest hotel to be constructed in Tallinn is Tallink's hotel that will contain 350 rooms. Tallink's hotel alone will employ 100 people.
(Eesti Päevaleht)

Tuesday, 21st of October, 2003

Pension money to move towards stocks
Most interesting new voluntary pension fund launched by Hansabank is V3 that can allocate all the savings of a pension collector into stocks and hence conceals a higher risk, but also a greater opportunity to earn money. Until now, four voluntary pension funds have invested up to 50 percent into stocks, which is as much as the most aggressive involuntary pension funds.
During past 12 months, total amount of third pillar savings pension funds has nearly doubled, increasing from EEK 43 million to EEK 82.2 million.

Hansabank active in Russia
Mihhail Petrov, head of St. Petersburg International Bank's Estonian office admitted that next week would bring news about the new cooperation projects of Hansabank and the bank of St. Petersburg. Petrov added that the cooperation is primarily related to real estate and construction.
Compared to Russian banks, Hansabank Group is big. In terms of total assets, Hansabank is on a honourable third place after first six months of the year.
(Eesti Päevaleht)

Monday, 20th of October, 2003

Hansabank to create two new funds
Alternatives of voluntary pension insurance expand, while Hansabank opens two new pension funds in November. As of October 15, Hansabank will have three voluntary pension funds: Hansa Pension Funds V1, V2 and V3. Difference of funds is in different risk level. The current Hansa Pension Fund V2 will become V1 fund with a stock percentage of 30. V2 fund will invest 60 percent and V3 fund will invest 100 percent into stocks.
Currently, there are four voluntary pension funds in Estonia. Besides Hansa Pension Fund there are also LHV, Sampo and Ühispank's complementary pension funds. By today, nearly 60,000 people have joined the third pillar savings pension in Estonia.

Private investors to allocate millions abroad
This year, Hansabank has helped a private investor to mediate stock deal abroad in the value of EEK 78 million, Ühispank in the value of EEK 20 million and LHV in the value of EEK 5 million.
According to Lauri Lind from Hansabank Markets, this year's record investment by a private person into a foreign company during one stock deal reached EEK 78 million. Investment was made into a Finnish company. Jaak Raivo from Ühispank admitted that one of their clients invested EEK 20 million into a Russian company. LHV's client allocated EEK 5 million into US stock market.
Market experts agree that compared to last year, private investors are investing more money into stocks of foreign companies, domestic market has moved to the background.

Foreign factors to make Hansa fly
On Friday, Hansabank's stock continued to increase fast, adding 2.8 percent to its price and reaching up to EEK 341.10 or EUR 21.80. During last three days of a week, the stock managed to grow 7.1 percent by the turnover of nearly EEK 123 million. According to Sten Sumberg, board member of investment bank Suprema, Hansabank's stock grew mainly due to positivism of foreign markets and a recent increase of Russian's rating.

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