Vienna Stock Exchange News

Vienna Stock Exchange: EUR 3.1 billion in capital raised in 1HY 2014

  • Successful 1HY 2014: solid growth in trading volumes
  • Transaction volumes year-to-date higher than aggregate of two preceding years
  • New record in market making mandates – lively interests of international trading members
  • ATX with upside potential – moderate valuations in international comparison


(Vienna) In the first half of 2014, Austrian companies raised more than EUR 3.1 billion in fresh capital through the Vienna Stock Exchange. This volume is larger than the aggregate volume of the past two years (transaction volume 2012 and 2013: EUR 2.1 billion) and the highest level achieved since 2007. The volume consists of the capital increases of Raiffeisen Bank International (EUR 2.78 billion), Porr (EUR 120 million), and the successful initial public offering of FACC (around EUR 213 million).

This year, the Vienna Stock Exchange has posted year-on-year gains in trading volumes every month up to now. The total increase in trading volume in the first half of the year in Austrian equities was around 30% (January to June 2014). By contrast, equity trading volumes (January to May 2014) on the London Stock Exchange rose 23%, on Deutsche Börse 11% and on the Warsaw Stock Exchange 1.4%. Total trading volume in equities on the Vienna Stock Exchange in 1HY2014 was EUR 24.7 billion, which is EUR 5.5 billion more than in 1HY2013. The average monthly trading volume was EUR 4.1 billion (average monthly trading volume in 1HY2013: EUR 3.2 billion).

"These figures show that the Austrian stock market is currently developing very well. Investors recognize quality and we have a lot of quality to offer in Austria. Many of our domestic companies are global market leaders in their industries, and will need capital for expansion and innovation over the medium term," explained Management Board members Birgit Kuras and Michael Buhl. "The ground has been prepared for further capital market transactions this year; it is fruitful and ready for new issues. Summer is traditionally a slow season, but we hope that the uptrend of the first half-year will continue in the autumn."


Top stocks and trading members in the first half of the year

The best performers on the prime market were Zumtobel (+50.31%), followed by AT&S (+37.06%) and Valneva SE (+30.56%). The most actively traded stocks in the first half-year were Erste Group Bank followed by Raiffeisen Bank International and OMV.

The ranking of trading members by trading volumes on the Vienna Stock Exchange in 1HY2014 shows Raiffeisen Centrobank AG at the top with a share of 9.8% in total trading volume ahead of Deutsche Bank AG (8.4%) and Morgan Stanley & Co (8.1%). Ranks 4 and 5 were achieved by the exchange members Erste Goup Bank AG (7.3%) and Merrill Lynch International (7%).

As of 1 July 2014, there are 224 market making mandates on the Vienna Stock Exchange, which is the highest level in ten years. With the highest number in market making mandates, two of Austria's major banks, Erste Group Bank and Raiffeisen Centrobank, play the most important role as liquidity providers in the prime market. In addition, a growing number of international banks are showing an interest in market making for Austrian Stocks, i.e., providing additional liquidity in continuous trading on the Vienna Stock Exchange. Currently, 13 exchange members act as specialists or market makers for the prime market by entering binding buy and ask quotes.


ATX has more upside potential

The ATX was slightly down in the period from January to June at a minus of 1.79%. If one factors in dividends, like in the ATX Total Return index, the net result is positive at 0.23%. In comparison to the half-year cut-off date of 2013, the ATX gained 12.45% (28 June 2013: 2,223.98 points; 30 June 2014: 2,500.85 points), and including dividends, it is even higher at 15.82%. After a rally in January (year-high 15 Jan. 2014: 2,729.07), in March, the ATX lost its slight gain of February (year-low 14 Mar. 2014: 2,386.96) due to the situation in the Ukraine. In April and May, the ATX fluctuated at this lower level. The upswing at the end of May was boosted by the ECB interest rate cut: the ATX fluctuated for around one month over the year-end level of 2013. At the end of June, a correction in banking stocks pushed the ATX down again.

"We strongly believe in the potential of the ATX. By comparison to Western Europe and the US, stocks on the Austrian market have moderate valuations and this makes them more attractive to investors," explained Management Board members Birgit Kuras and Michael Buhl. The price-to-equity ratio is currently around 1. This means that the stocks in the ATX are being traded on average at the book value of the equity capital. There are currently hardly any indices worldwide that have such a low price-to-equity ratio.


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 facilitates access and trading on the local markets 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.