- Quarterly trading volumes nearly double yoy
- ATX with upside potential: Ukraine and Russia weighed down performance in March
- International investors showing revived interest in Viennese market
(Vienna) Equity trading on the Vienna Stock Exchange expanded in the first quarter of 2014. The average monthly trading volumes were up by over 46% compared to the same period of the preceding year (01-03/2013: EUR 3.26 billion, 01-03/2014: EUR 4.76 billion). At a volume of EUR 4.7 billion in March, equity trading continued the very robust trend of the two preceding months (01/2014: EUR 5.35 billion, 02/2014: EUR 4.23 billion).
"The first quarter of 2014 was a very good one for the Vienna Stock Exchange. While the first months of a year traditionally feature the highest trading volumes, the increase this year was remarkable. Equity trading volumes returned to the level of the year 2011. This development reflects the interest of investors in Austrian stocks," stated Birgit Kuras, member of the management board of the Vienna Stock Exchange.
Upside potential for the ATX:
The ATX stands at 2.530,25 index points by 7 April 2014 and shows a 0,64% decrease year-to-date. After a rally in January (year-high 15 Jan. 2014: 2,729.07), the ATX lost its slight gain of February (year-low 14 Mar. 2014: 2,386.96). The five largest companies on the Vienna Stock Exchange (ATX5) weighed down the performance of the leading index in the first quarter. The reason was mainly the crisis in the Ukraine. Finally, in the first week of April the Austrian stock market regained momentum. Analysts forecast a performance upswing to last until the end of the year. This year’s top performers in the ATX are Zumtobel (+44.93%), Telekom Austria (+26.85%) and Wienerberger (+18.87%). The biggest losers during the same period were OMV (-6.29%), voestalpine (-5.68%) and Verbund (-2.67%). Total market capitalization on the Vienna Stock Exchange stood at EUR 88.07 billion at the end of March.
Revival of interest from international investors
According to a study carried out on behalf of the Vienna Stock Exchange, the share of free float in Austrian ATX prime stocks increased from EUR 32.4 billion to EUR 38.1 at the end of 2013 billion due to higher demand and higher prices. Institutional investors hold 59.8% of free float, Austrian retail investors 23.1% and the share of non-financial institutions is 17.1%. A detailed analysis of institutional investors shows that the US regained its leading position (22.8%) followed by institutional investors from Austria (19.3%) and Great Britain (13.7%). Within Continental Europe, demand for Austrian stocks came mainly from institutional investors from France, Norway, Germany, the Netherlands, Poland and Switzerland.
"The rising international demand for Austrian stocks is in line with the overall European trend," explains Michael Buhl, member of the management board of Wiener Börse AG. "In 2013, foreign investors started investing more capital in European companies again. Moreover, they reshuffled their funds from bonds into stocks. Currently, there are few alternatives to equities. This phase also seems a good entry opportunity for private investors."
About the Vienna Stock Exchange
The Vienna Stock Exchange is a 100% subsidiary of the CEE Stock Exchange Group (CEESEG) which includes the stock exchanges of Budapest, Ljubljana and Prague. The CEE Stock Exchange Group is the largest stock exchange group in the region. In addition to the four stock exchanges, CEESEG operates three commodity exchanges and holds stakes in five clearing systems (CCPs) and two central securities depositories (CSDs). CEESEG makes access and trading on the local markets easier with the aim of improving liquidity. The CEESEG stock exchanges cooperate with 12 exchanges in Central and Eastern Europe and are highly appreciated worldwide for their unique CEE know-how.