Vienna Stock Exchange News

ATX breaks through 4,000-point mark

(Vienna) At 10.53 a.m., the Viennese leading index broke through the 4,000 point mark on 30 January 2006 for the first time. This is the third year in a row that the ATX has continued to rally: In July 2004, the ATX broke through the 2000 point mark and only one year later it overcame 3,000 points. In the past three years, the performance of the ATX has been far above the international average at approximately 35% (2003), 57% (2004) and 51% (2005).

Investors who put their money in Austria funds have seen their profits grow annually at rates that were even higher in some cases than the ATX. "Despite this impressive and sustainable development, Austrians have not recognized the magnitude of the earnings opportunities of the Austrian capital market", said Michael Buhl, member of the management board of Wiener Börse AG, a bit surprised. "Savings passbooks are still the most attractive investment form. Only 7% of Austrian own shares. A lot of money is just lying there", said Mr. Buhl.

Mr. Buhl does not believe that the "end of the party" is in sight as has been predicted by analysts for a long time, because: "Some 80% of ATX companies are active in Eastern Europe and the dynamic economic growth there will continue to be a driving force for the stock market."

Unlike Austrian investors, foreign investment firms have long since jumped on the bandwagon: While only 2% of total assets of Austrian investment funds are invested in the total assets of Austrian investment companies, at year-end 2005 some 54.5% of trading volume was accounted for by international members. This reflects the dynamic development: Only six years ago, the share of foreign members in total trading volume was practically zero, and two years later – year-end 2003 – this share had climbed to only 23.2%.