EQUITY MARKETS DRIVE INVESTORS TO THE BALTIC STATES
One of the world’s leading business information websites FT.com announced that equity values in the Baltic States of Lithuania, Latvia and Estonia have been speedily growing, however, Baltic shares still remain cheap by global standards, and this drives investors to pour back into the three markets.
The OMX Baltic benchmark, the main measure of the three markets, has gained nearly 80 % in the past six months and nearly a third in the past month, putting Lithuania, Latvia and Estonia among the best performing markets in the world this year. Lithuania has enjoyed the sharpest climb, more than doubling in value since March, with Latvia up 72 % and Estonia 62 % over the same period.
Baltic economies remain in the grip of a recession, however “the region will come out of the crisis stronger and leaner,” says Marcus Svedberg, Chief Economist at East Capital, a Stockholm-based investment company focused on Eastern Europe. “We will get back to the long-term growth potential, maybe not next year but the year after.”
