- In January and February, monthly trading volumes rose by more than 50% versus 2013
- Erste Bank Group, Raiffeisen Bank International and OMV are the most actively traded shares
- Current political situation in the Ukraine is fuelling uncertainty
(Vienna) An optimistic economic outlook for 2014 boosted the market in Vienna at the start of the year: In January, equity trading volume on the Vienna Stock Exchange was EUR 5.35 billion, and therefore, around 60 percent higher than in January 2013 (01/2013: EUR 3.32 billion). The month of February proved that it was not just a one-time event: At an equity trading volume of EUR 4.23 billion, it was 50 percent higher than in the same period of the previous year (02/2013: EUR 2.75 billion). The positive trend of the second half of 2013 was sustained in the beginning of 2014 on the Vienna Stock Exchange – the daily equity trading volume on the strongest trading day of the current year was almost EUR 625 million or 30 million shares; the average daily trading volume up to now is EUR 234 million or 14 million shares.
The capital increase of Raiffeisen Bank International (RBI), which was carried out in February, was one driver of this development. Almost EUR 3 billion were raised from investors. This makes it the largest capital transaction on the Vienna Stock Exchange since the year 2007. The most actively traded shares in the first two months of the year were Erste Group Bank followed by Raiffeisen Bank International and OMV. With an aggregate volume of EUR 4.89 billion (01+02/2014) trading in these three shares accounted for 50% of equity trading on the prime market, which is the quality segment of the Vienna Stock Exchange.
"This major transaction by RBI is a sign of the positive sentiment among investors. This makes us optimistic, of course, about further capital market transactions in the coming months," underlines Birgit Kuras, Member of the Management Board of Wiener Börse AG. "Our international experience confirms this: At our February road show in London with 12 exchange-listed Austrian companies, over 80 meetings with institutional investors were held. This clearly shows the enormous interest in our market," adds Michael Buhl, Member of the Management Board of Wiener Börse AG.
ATX Performance
The ATX gained around 1.62% in the period from January to February 2014. In European comparison, the performance of the index ranks in the middle. Of the ATX shares Zumtobel gained the most, advancing 61.94% by the end of February, while Telekom Austria was up 28.18% and Wienerberger rose by 18.74%. The biggest losers during this period were STRABAG, which dropped -7.41%, voestalpine with minus 6.51% and OMV with a decline of 5.23%.
Market capitalization on the Vienna Stock Exchange rose at the end of February by 7.37% to EUR 91.69 billion. This level was last seen in the spring of 2011. The best performing companies at the end of February were Erste Group Bank with a total market capitalization of over EUR 11 billion, OMV (EUR 10.8 billion) and Raiffeisen Bank International (EUR 7.4 billion). The five largest companies (weighted by free float capitalization and trading volume) make up the "ATX five" index. Apart from Erste Group Bank, OMV and RBI, voestalpine and Immofinanz are also included in the "ATX five".
Current developments
The nervousness regarding the Crimea crisis also reached the Viennese market in March, not least due to the business exposure of Austrian companies in the region. The price drops were accompanied by strong trading volumes. With the meeting of the EU finance ministers in Brussels at the ECOFIN Council coming up on 11 March, the topic of the financial transactions tax (FTT) is being discussed again. An introduction of the FTT in Austria would create a massive burden on the domestic capital market and result in an enormous competitive disadvantage versus other capital markets of the region. Moreover, a taxation of exchange equity trading would hinder the access of companies to equity capital. "If the government were to actually reach an agreement to introduce a FTT in Austria, the Vienna Stock Exchange demands that all off-exchange transactions, which could also be executed on stock exchanges, be taxed at a higher rate. This would result in the politically desired containment of opaque and unregulated trading, i.e., it would have a steering effect," explained Management Board members Birgit Kuras and Michael Buhl. "Furthermore, we demand an exemption for market makers from the FTT. They are fundamental to the functioning of the Austrian capital market."
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.