- Equity trading volumes up by around 25% in 2015
- The ATX leading index among top performers in international comparison
- Market capitalization climbs to EUR 86.28 billion
- Stocks still an attractive investment
(Vienna) The Vienna Stock Exchange can look back at a year of solid developments on the stock market in 2015. The uptrend in equity trading volumes has now been sustained for more than two years: trading volumes were up by 24.3%; the ATX, the Austrian leading index, gained 11.20%, and innovations in bond trading were the highlights of the year. Market capitalization on the Vienna Stock Exchange reached EUR 86.28 billion on 15 December 2015. This was a gain of 7.86% over the year-end figure of 2014.
“We have two years of robust trading volumes behind us, driven by the strong interest of international investors. Trading volumes on the Vienna Stock Exchange have reached a stable, sustainable level this year. Despite the size of the Austrian market, we saw a steady rise in liquidity - this is a pleasing development. We will see trading volumes at around the same level in the coming year. The ATX ranks as one of the leading indices in European comparison thanks to the good performance of our Austrian stocks,” said Birgit Kuras and Michael Buhl. “The interest rate decision in the US is likely to increase appeal of European stocks in 2016.”
Leading index, ATX, top performer in Europe
The ATX had a positive trend in 2015 and gained 11.20% (incl. dividends 13.42%) from January to 16 December 2015. This is an outstanding achievement in European comparison and on par with indices like the DAX (+ 9.26%) or the Euro Stoxx (+6.86%).
After the all-year low hit in January (year-low 14 Jan. 2015: 2,122.08 points), a rally followed in the first half of 2015. The ATX peaked in mid-May (year-high: 15 May 2015: 2,681.44 points). This uptrend was supported, among other things, by the abatement of the Russian-Ukrainian conflict, the low price of oil and the depreciation of the euro. Around the end of the first half-year, the positive sentiment was dampened by the payment difficulties experienced by Greece. The collapse of the stock market in China added to the prevailing insecurity, although the ATX managed to recover very well in international comparison. Since the end of the third quarter, the ATX has been on another uptrend driven by the announcement of the ECB regarding further easing of European monetary policy.
This year there were more winners than losers among the major exchange-listed stocks as of 16 December 2015. Some companies on the prime market, the top segment of the Vienna Stock Exchange, doubled their stock market value, such as Kapsch (+107.02%) and Cross Industries (+98.53%). AT&S (+58.34%), Do&Co (+52.95%), and in the ATX, Wienerberger (+48.14%) also saw a significant boost. Apart from Wienerberger, the stocks of Erste Group Bank (+45.05%) and Conwert Immobilien Invest (+38.35%), Lenzing (+32.94%) and Zumtobel (+24.49%) in the ATX were among the top performers.
Equity trading volumes up by almost 25%
Equity trading activity remained at a high level throughout the year and was 24.3% higher than in the preceding year. The total equity trading volume on the Vienna Stock Exchange this year reached EUR 56.69 billion on 15 December (versus 1 Jan. 2014 to 15 Dec. 2014: EUR 45.62 billion). From February to November, the Vienna Stock Exchange recorded a gain in trading volumes every month versus the preceding year. The months of March, June and November were exceptionally strong. In March, at almost EUR 5.7 billion, monthly trading volumes reached the highest level since August 2011. In June, the Vienna Stock Exchange saw the second-highest widening of trading volumes of the year when it reached EUR 5.48 billion (+60% vs. 06/2014); trading volume in November was EUR 5.12 billion (+65.8% vs. 11/2014).
Companies were more hesitant about raising capital this year
After a record-breaking year in capital increases last year (volume in 2014: approx. EUR 4 billion), companies were more cautious this year. There were six capital increases by four companies that raised a volume of around EUR 320 million. WP AG, an Upper Austrian component producer for the motorcycle and automotive industry, joined the mid market segment. A small downside were the delistings of ATB, HEAD, MIBA and BENE, which disappeared from the price list of the Vienna Stock Exchange due to takeovers, company reorganizations and changes in ownership this year. On the other hand, corporate financing through bonds continued to develop well. After a particularly strong year in 2014, there were 30 new corporate bond issues this year with a total outstanding volume of around EUR 5.2 billion (preceding year: 7.2 billion, 39 corporate bonds). The largest new corporate bond issues were those of OMV with EUR 1.5 billion, Strabag with EUR 200 million and CA Immo with EUR 175 million. This year, the Vienna Stock Exchange also took further measures to stimulate the secondary market and make it more transparent by introducing continuous trading for selected bonds.
“We work very actively with companies interested in raising capital through the stock market. Changes to corporate strategies have to be planned for the long term in order for a company to be able to benefit from the capital market sustainably. This year, our Austrian companies have been very cautious and hesitant about making investments,” said Birgit Kuras, explaining this year’s modest volumes of equity capital raised, but she also added that “sentiment will reverse again, and we are already seeing some first signs. A listing has to be planned well in advance anyway. We are seeing lively demand and the need for information at our customized information workshops and regular visits to companies.”
Themes for 2016
The Management Board of the Vienna Stock Exchange expects interest from investors and trading members to remain robust in 2016, above all, because the quality of Austria’s listed companies will continue to convince investors in the coming year. “The low interest rate policy, the weak euro and the continued low energy costs could be supportive of an uptrend of the ATX in the coming year,” the Management Board of the Vienna Stock Exchange concludes, concurring with analysts’ opinion.
The Vienna Stock Exchange continues to appeal to policy-makers to strengthen equity capital financing and investment culture in Austria. “The individual measures such as the Prospectus Directive within the framework of the capital market union promise to make the situation easier especially for smaller and medium-sized companies. Work in Austria should continue along these lines at the national level without delay. Deterrents such as the financial transactions tax, which does not even enjoy support throughout the EU, should urgently be removed from the agenda,” said Michael Buhl.
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.