- All-time high in number of executed orders
- Corporate bonds break record in number and total volume
- 25 years ATX: 2016 brought investors returns of 10.45% YTD (13.71% including dividends)
- Vienna Stock Exchange to set up IT reporting service in conformity with MiFID II: Approved Publication Arrangement (APA)
(Vienna) The highlights of 2016 on the Vienna Stock Exchange featured returns of 10.45% (13.71% incl. dividends) for the Austrian leading index, the ATX, and record levels in new corporate bond issues and transactions. 45 new corporate bonds are traded on the Vienna Stock Exchange with a total volume exceeding EUR 7.28 billion for the first time. In mid-December 2016, 8.6 million executed exchange orders marked an all-time high.
“The Vienna Stock Exchange is the clear market leader in domestic stocks trading. It offers the narrowest trading spreads compared to other trading platforms and the fullest order book, which makes it the most inexpensive stock market for investors,” said Christoph Boschan, the new CEO of the Vienna Stock Exchange. The decisive quality criterion for equity trading is the narrowest spread, that is, the smallest possible difference between buy and sell quotes. When spreads are narrow, it is less expensive to resell or buy a stock. The independent research firm Liquidmetrix reports that the Vienna Stock Exchange offers a spread of around 13 basis points for shares in Austria's leading ATX index (1 basis point = 0.01 percent).
“Internationally, the Vienna Stock Exchange is increasingly gaining attention, as demonstrated by our record volume of foreign bond listings. We are planning to build on this strength. Both locally and internationally, customer focus is of utmost importance for us. For example, to ease the regulatory burden for our customers, we are working on introducing new services in the near future,” said Boschan.
Highest trading quality and liquidity in Austrian shares
After a three-year uptrend (+50% turnover 2013 vs. 2015) in trading volumes for Austrian shares, the figure remained stable on the Vienna Stock Exchange this year. Total equity trading volume on the Vienna Stock Exchange this year until 19 December 2016 was EUR 54.31 billion (1 January 2015 to 18 December 2015: EUR 57.51 billion).
International trading members account for 83% of stock trading. International institutional investors continue to lead the way in terms of investments in ATX prime stocks, with the U.S. taking the top spot followed by Austria, Great Britain, Norway, France and Germany.
All-time high in executed exchange transactions and plans to expand IT services
With a total of 8.60 million exchange orders executed as of 16 December 2016, the Vienna Stock Exchange reached an all-time high this year. By the end of November, the number of executed orders stood at 8.1 million, thus exceeding the total figure for 2015 and breaking a new record. In 2016, the trading system Xetra® operated by the Vienna Stock Exchange processed 2.54 million transactions (2015: 2.28 million) on the daily average. On 24 June 2016, for the first time since 2011, the threshold of 4 million transactions was passed. The highest figures for exchange trades were recorded on 24 and 27 June 2016 (BREXIT vote) and also on 10 November 2016 (decision week of presidential elections in the U.S.).
Ludwig Nießen, Management Board member responsible for technology and the operation of the stock exchange, stated: “Only a solid system like that of the Vienna Stock Exchange can meet these high requirements. In the coming years, we also plan to expand our IT services. Specifically, we plan to support trading participants in meeting regulatory requirements and will be offering a new service for this purpose.”
With the introduction of MiFID II, new transparency requirements for OTC trading enters into force that concern all asset classes (shares, participation certificates, ETFs, certificates, bonds, structured financial products, emission allowances and derivatives). Up to now, the rules had only applied to shares. Trading data will have to be published in real time to the extent it is technically possible through a so-called “Approved Publication Arrangement” (APA). The Vienna Stock Exchange plans to enlarge its existing reporting portfolio for this purpose.
ATX leading index ranks among top European stocks & Austria’s best-performing stocks in 2016
In the period 1 January to 16 December 2016, the ATX surpassed its average annual average yield of 6% and gained 10.45% (13.71% incl. dividends). This is an excellent performance in a European comparison versus indices like the DAX (+ 6.15%) or the Euro Stoxx (-0.25%).
This year, there were more gainers than losers among the major exchange-listed companies as of 16 December 2016. In the ATX, Lenzing AG (+ 66.36%), Schoeller-Bleckmann Oilfield Equipment AG (+ 49.75%) and voestalpine AG (+ 35.95%) were the top gainers. STRABAG SE (+ 42.59%), KTM Industries AG (+ 36.65%) and Polytec Holding AG (+ 35.38%) also yielded solid profits for investors. As of 16 December 2016, market capitalization on the Vienna Stock Exchange was EUR 95.55 billion, which is an increase of 8.66% over the year-end level of 2015.
Debt capital currently the trend
At present, 90 stocks of 84 companies are traded on the Vienna Stock Exchange as well as over 450 corporate bonds issued by around 220 companies (regulated and unregulated markets). In 2016, two companies carried out capital increases on the Vienna Stock Exchange and raised a total of EUR 223 million in equity. Three companies were added to trading on the Third Market: GVC Holdings PLC (22 Feb.), Dr. Bock Industries AG (14 Jul.) and BPG hramba plemenitihkovin d.d., class A shares (10 Nov.). On the debt capital side, 45 corporate bonds with a total volume exceeding EUR 7.28 billion for the first time were newly added to exchange trading. These include 21 corporate bonds of domestic issuers (EUR 1.43 billion) and 24 corporate bonds of foreign issuers (EUR 5.85 billion). 2016 will be another record-breaking one in terms of the number and volume of new corporate bonds. In 2015, 36 corporate bonds with an issuing volume of over EUR 5.3 billion were added to the Vienna Stock Exchange. EUR 3 billion were foreign issues.
“Times of low interest rates like today do not keep companies away from the stock market; yet rather than issuing shares, they issue bonds instead. The quotation list is growing longer in this area,” explained CEO Boschan. “However, as regards stock market capitalization, at 26% of GDP, Austria is far behind the euro zone average of 59%. I would like Austria to achieve at least the European average and hope that all domestic stakeholders will work towards this goal together with the Vienna Stock Exchange.”
About the Vienna Stock Exchange
The Vienna Stock Exchange is the only securities exchange in Austria. It features a modern infrastructure and supplies market data and relevant information. It offers Austrian companies maximum visibility, high liquidity and utmost transparency. Investors can rely on the smooth and efficient execution of exchange trades. The Vienna Stock Exchange operates a central market datafeed for Central and Eastern Europe (CEE) and is well established as an expert for the calculation of indices with a reference to the region. Wiener Börse AG, together with its holding company, CEESEG, cooperates with over ten exchanges in the region and is globally recognized for this unique know-how.
