October, according to its statistical image, presented itself as volatile and erratic. While the broadly funded way out of the Covid-19 pandemic initially carried the economic growth hope, this changed dramatically after the emergence of a sharp increase in the number of cases associated with greater government intervention in daily life. The previously higher stock markets turned sharply into negative territory and deepened this to a sad monthly performance. In addition, of course, the uncertainties surrounding the upcoming US presidential election and Brexit, which is supposed to be all about keeping one's face, have had an impact. The hard Brexit has long been accepted in the markets.
However, Austria's stock market was able to perform significantly better than its European benchmark indices, especially at this stage of increasing uncertainty. Of course also because the ATX-YTD performance was the worst in Europe until then and no one wanted to part with its shares at this enormously low level. But it was also encouraging business results from industry and financial stocks that helped the index to lose less than its peers in October. An indication of the potential of our market should be that the lock-down measures, together with the financial assistance that has just been relaunched, should generate economic growth that deserves to be thought through the Covid-19 crisis.
Then the very fact that our ATX is one of the most cyclical stock exchanges in Europe would have to change from a burden to an advantage that makes the performance of the last few months fade as a ridiculed memory.
Author:
Wolfgang Matejka, CEFA
Managing Director of Matejka & Partner Asset Management GmbH
4 November 2020
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Note
Wiener Börse AG would explicitly like to point out that the data and calculations given in this report are historic values, which do not permit any conclusions as regards future developments or value stability. Price fluctuations and loss of capital are possible in securities trading. The contribution is the personal opinion of the analyst and does not constitute a financial analysis or a recommendation for investment by the exchange operating company, Wiener Börse AG.
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