- Equity trading volume in 1Q 2016 up by 3.8% to EUR 15.7 billion
- Average monthly trading volume at EUR 5.23 billion
- Upside potential for ATX: Performance YTD – 5.28%
- Strong inflow of liquidity: 265 market maker and specialist mandates add to liquidity
(Vienna) The uptrend in stock trading on the Vienna Stock Exchange continued unbroken in the first quarter of 2016: Equity trading volumes reached a total EUR 15.7 billion, which is a gain of 3.8% over the preceding year (Q1 2015: EUR 15.1 billion). In March, stock trading hit EUR 5.68 billion thus seamlessly continuing the strong trend of the preceding two months (01/2016: EUR 4.70 billion, 02/2016: EUR 5.32 billion). The average monthly trading volume in 2016 is EUR 5.23 billion. The number of trades executed is also very high: February and March 2016 saw the highest number of transactions since October 2008 with over 810,000 trades executed. This represents a gain of 20.9% versus the like period of the previous year.
“We are very pleased about the very robust start into the year 2016. Currently economic fears eased and the interest rate cut by the ECB is boosting stock markets all over Europe,” explained Birgit Kuras and Michael Buhl, management board members. “Already in the years 2014 and 2015, equity trading on the Vienna Stock Exchange had widened year on year by over one-fifth. We expect trading to continue at around this volume this year as well.”
Upside potential for the ATX
In the course of the first quarter, Austria's leading index, the ATX, dropped by 5.28% and stood at 2,270.38 points on 31 March 2016. The performance of the ATX was slightly better this year than the indices of most other major European stock markets. The ATX hit an all-year high on 5 January 2016 (2,362.73 points). The uncertainty that prevailed from January to mid-February caused the leading index to drop to its all-year low on 11 February 2016 (1,957.05 points). The cut in the European key lending rate to 0% as well as the easing of economic fears and of pressure on oil prices were factors that subsequently helped the ATX to recover.
“International investors, especially institutional investors, showed a lively interest in Austrian stocks. The current situation has potential: low stock prices are always good entry market points for investors. Some stocks withstood the general market trend and achieved solid gains in the first quarter,” stressed Birgit Kuras and Michael Buhl.
To further increase international interest in Austrian stocks, the Vienna Stock Exchange organises regular roadshows at major financial centers worldwide, most recently in London and Amsterdam, and this week in Paris. Additionally, the stock exchange is working intensely to fill the pipeline for potential public offerings. Through IPO workshops and personal visits of companies, especially Austrian companies in growth sectors that want to finance further growth via equity, should be attracted.
Top performers, most-actively traded stocks and trading members
The list of stocks with the best performance on the prime market paints a mixed picture. STRABAG SE (+12.70%), Flughafen Wien AG (+9.59%), Semperit AG Holding (+9.32%), Telekom Austria (+7.22%) and Andritz AG (+7.11%) are the top five. By industry, the poorest performers in the first quarter of 2016 were banks and insurance companies. Total market capitalization on the Vienna Stock Exchange was EUR 84.17 billion at the end of March 2016.
At the top of the list of the most actively traded stocks in the first quarter of 2016 was Erste Group Bank AG with a total trading volume of EUR 3.06 billion followed by OMV AG with monthly total trading volume of EUR 1.94 and voestalpine AG with monthly total trading volume of EUR 1.73 billion. Fourth and fifth place are taken by Raiffeisen Bank International AG (EUR 1.4 billion) and Andritz AG (EUR 1.15 billion).
A ranking of trading members by highest trading volume in 1Q 2016 puts Morgan Stanley & Co with a share of 8.33% in total trading volume on the Vienna Stock Exchange ahead of Wood & Company Financial Services (8.13%) and Deutsche Bank AG (8.05%). Places 4 and 5 were achieved by the exchange members Hudson River Trading Ltd (7.70%) and Spire Europe Ltd (7.59%).
Trading on the Vienna Stock Exchange is bolstered by the additional liquidity provided by market makers and specialists. They improve the quality of the order book and increase liquidity with the ultimate objective of generating higher order and trading volumes. As of 1 April 2016, there were 265 market maker mandates on the prime market of the Vienna Stock Exchange. The two major Austrian banks Raiffeisen Centrobank (38 mandates) and Erste Group Bank (35 mandates) play a key role in providing liquidity for the stocks listed on the prime market. Over the past years, the exchange also succeeded in acquiring international trading members to act as market makers for Austrian stocks. Currently, there are 16 exchange members who act as specialists or market makers on the prime market and enter binding bid and ask quotes – the highest number of trading members ever. The larger the number of market makers, the higher the volumes in the order book and the easier the execution of also large orders of institutional investors becomes.
About the Vienna Stock Exchange
The Vienna Stock Exchange is the only securities exchange in Austria. It features a modern infrastructure and also supplies market data and relevant information. This guarantees the smooth and efficient execution of stock exchange transactions and enables the exchange to serve as intermediary for all market participants. The Austrian power exchange EXAA and the CEGH Gas Exchange are also operating under the license of the Vienna Stock Exchange. Together with its holding company CEESEG, it cooperates with 12 exchanges in Central and Eastern Europe and enjoys a solid reputation worldwide for its unique CEE know-how.