(Vienna) Wiener Börse plans to increase market liquidity in 2008 despite strong market fluctuations in order to remain attractive both to private and institutional investors and to companies interested in going public. “Attractive companies are always in demand among investors. If liquidity on the stock market is sufficient, investors seek investments in liquid stocks, especially in difficult market phases,” stressed Heinrich Schaller, Joint CEO of Wiener Börse AG. In the past four years, Wiener Börse has succeeded in raising trading volumes by as much as 10 times and hit EUR 14.7bn in December 2007. “A major contribution to this achievement comes from foreign trading participants in addition to the performance of the listed companies,” Mr. Schaller firmly believes. At present, most foreign banks are from Germany and the United Kingdom, but a new trend is emerging: A growing number of Eastern European banks are showing interest in the Austrian capital market and “this is the reason why Wiener Börse has decided to focus this year on acquiring foreign trade participants from Eastern Europe,” said Mr. Schaller. As in 2007, Wiener Börse is targeting to acquire 12 new trading participants this year.
International interest is also lively among investors: According to a survey by Capital Bridge USA conducted at the end of November 2007, the top 200 global institutional investors invested USD 42.3bn (EUR 28.5bn) in ATX prime companies, which is up by USD 5.8bn (EUR 3.9bn) compared to one year ago. “I am not at all surprised that foreign investors are now making above average profits. However, I also firmly believe that when these weeks of turbulence are over, the ATX will rapidly climb again, because international investors will soon remember that Austrian companies have excellent fundamental data,” said Mr. Schaller.
Wiener Börse has achieved international attention mainly due to its listed companies' strong positioning in Eastern Europe and through its own activities – especially in the field of indices – in the region. “In 2007, nine new indices were launched – seven of which were CEE indices – therefore also making it a record year for Wiener Börse in regard to indices,” pointed out Michael Buhl, Joint CEO of Wiener Börse AG. The structured products based on the Eastern European indices are traded worldwide and have boosted the regional markets into the international limelight as well as driving up trading volumes. “The indices are also an important instrument in our cooperation with Eastern European exchanges,” stressed Mr. Buhl. Up to now, Wiener Börse shares the proceeds from index licensing with the exchanges of Budapest and Bucharest, and has created indices in cooperation with the exchanges of Belgrade, Bucharest, Kiev, and Shanghai. Currently, Wiener Börse has 73 index licensees versus 30 in 2004. As regards the consolidation of Eastern European exchanges, Mr. Buhl laments the slowing pace: “Unfortunately, convergence is not proceeding as fast as we had expected just two years ago. The markets of Eastern and Southeastern Europe have performed excellently, easing the pressure to consolidate. Therefore, this year we are concentrating on collaboration with Eastern European exchanges and aim to complete three additional cooperation projects.” Wiener Börse will make a bid as strategic partner to any exchanges that desire a strategic partnership. Currently, Wiener Börse is interested in acquiring shares in the stock exchanges in Ljubljana and Sofia both of which are expected to look for partners this year.