In August, the Federation of European Securities Exchanges (FESE) published recent statistics of European exchanges where the WSE is ahead of the Wiener Boerse in terms of capitalisation and has become the largest exchange in Central and Eastern Europe.
In August, the WSE published results of a recent survey of investors structure in exchange trading, showing the highest share of domestic institutional investors in equity trading in the history of research (41 percent).
The first anniversary of NewConnect on 30 August was a milestone for the market. On that occasion, the WSE published a report summarising the first 12 months of operation of NewConnect.
IPOs
PZ CORMAY debuted on the WSE Main List on 20 August. The company specialises in production of high-quality diagnostic reactants for in vitro tests and distribution of laboratory diagnostics equipment. Its production is based on proprietary technologies of reactant formulae and clinical test sets.
PZ CORMAY was the 24th IPO in 2008 and the 366 listing on the WSE Main List.
Exchange Members
Two new remote Exchange Members started operations on the WSE in August: FIO o.c.p., a.s. from Slovakia and DekaBank Deutsche Girozentrale from Germany.
Bratislava-based FIO o.c.p., a.s., which started operations on 1 August, is the first Slovak broker operating on the WSE. FIO o.c.p., a.s. is a member of the FIO Financial Group and its core business is trading on foreign equity and derivative markets. The broker acts as an intermediary in trading in financial instruments for small and medium-sized institutional investors and private individuals.
The German DekaBank Deutsche Girozentrale, located in Frankfurt, started operations on the WSE on 5 August 2008. DekaBank is the central institution of the German Savings Banks Finance Group operating in retail banking and mutual fund sector. Both by assets under management and by equity, it is one of the largest financial institutions in Germany.
Remote membership gives foreign brokers direct access to the WSE system without physical presence in Poland. There were 47 Exchange Members at the end of August 2008, including 19 remote Exchange Members from Hungary, the Czech Republic, Austria, the United Kingdom, France, Germany, Sweden and Slovakia.
On 26 August, Kraków-based DOM MAKLERSKI POLONIA NET S.A. submitted an application for admission to operation on the WSE as an Exchange Member.On 27 August 2008, Saxon Financials Limited located in London, UK submitted an application for admission to operation on the WSE as an Exchange Member.
Other Events
On 4 August, the WSE modified abbreviated names of all futures contracts by increasing the number of digits indicating the year of expiration of futures contracts. Abbreviated names currently include only the last digit of the year of expiration. The new abbreviated name will include the last two digits of the year of expiration. The modification is effective as of 22 September 2008, after the expiration of September futures contracts.
On 7 August, the WSE presented results of a recent survey of investor structure in exchange trading in H1 2008. The share of domestic institutional investors in equity trading in that period was 41 percent, the highest in the history of the research (since 1997). Foreign investors also account for 41 percent of equity trading. The share of domestic individual investors in equity trading fell to 18 percent. This investor group is predominant, however, on the futures market, representing 52 percent of trading.
The share of remote exchange members in trading is growing steadily. This group accounted for less than 2 percent of equity trading on the WSE 2 years ago. It represents close to 9 percent now.
The share of on-line trading in total trading of individual investors was 65 percent for equities, 78 percent for futures contracts and 81 percent for options.
On 7 August, the Warsaw Stock Exchange signed an exchange data distribution agreement with Alior Bank which will offer its clients real-time access to exchange information from the WSE Main List and NewConnect. The number of exchange data vendors hence increased to 47, including 28 domestic and 19 foreign providers (from the UK, the USA, Switzerland, France, Austria, Sweden, Denmark, Norway and Slovakia). The number of vendors offering access to NewConnect quotations increased to 32, and the number of vendors offering access to reports of NewConnect listed companies (EBI) reached 18. Data distribution agreements with the WSE are primarily signed by brokerage houses and information agencies. Data vendors also include internet portals and software companies which want to offer WSE quotations. Real-time WSE data is available to over 180 thousand subscribers in Poland and on all continents.
On 8 August, the daily trading volume in currency exchange contracts was in excess of 1,000 units for the first time in WSE history – it reached 1,296 contracts. The previous record of 778 contracts was reported on 9 July 2008.
On 19 August, the first US company was named WSE IPO Partner. US FINANCE CONNECT, LLC, with its seat in Chicago, provides comprehensive services to companies interested to raise equity on stock markets, mainly on NewConnect. US FINANCE CONNECT is the 14th WSE IPO Partner.
The WSE IPO Partner Programme, launched in the autumn of 2006, is designed to ensure the support of WSE Partners – foreign financial institutions – for WSE promotion efforts in foreign markets.
The WSE Extraordinary General Assembly was held on 19 August. The General Assembly adopted amendments of the Company’s Articles of Association related to the privatisation of the WSE, including the introduction of non-voting bearer shares preferred in terms of dividend as each share gives right to a dividend 2.5 times higher than an ordinary share. In addition, the WSE Shareholders approved the possibility to apply for the admission of its shares to trading on the regulated market, dematerialisation of the company’s shares, registration in the depository for securities, and execution of relevant agreements aimed at underwriting the sale of shares held by the State Treasury.
The Extraordinary General Assembly also reduced the number of WSE Supervisory Board Members to seven.
The 24th IPO Day was held on the WSE on 27 August.
Four companies planning to list on the WSE were introduced during the IPO Day:- Gonar International Sp. z o.o. (NewConnect)
- POL-INOWEX S.A. (Main List)
- GoFinance Sp. z o.o. (NewConnect)
- Interbud Lublin SA (Main List)
IPO Days are organised by the Association of Individual Investors, the WSE, and the National Depository for Securities. The first IPO Day was held in 2006. Over 90 companies have since been introduced to investors. Around 1,500 investors have participated in meetings and over 3,500 viewers have watched on-line transmissions of the 23 editions.
According to statistics published in August by the Federation of European Securities Exchanges (FESE), the WSE passed the Wiener Boerse in terms of capitalisation and has become the largest exchange in Central and Eastern Europe. The WSE capitalisation exceeds the capitalisation of companies listed in Vienna - it was EUR 126.2 billion at the end of July (EUR 117.3 billion in Vienna). The WSE-Wiener Boerse capitalisation gap has been decreasing steadily for years.
The Warsaw Stock Exchange is also the regional leader concerning the number of listed companies, number of IPOs,and trading volumes on the derivative market.
Considering the dynamic WSE IPOs market as well as the prospective privatisation of large companies (including energy companies) and the fast growth of the entire economy, the capitalisation gap between the WSE and the WB may be expected to widen in the future in favour of the WSE.
In August, the WSE disclosed its intention to request the WSE Supervisory Board and subsequently the Financial Supervision Authority for approvals to conclude the acquisition of shares from MTS-CeTO shareholders. The report followed the expiration of a proposal addressed to MTS-CeTO shareholders by the WSE in June 2008. Shareholders whose stake in the share capital totals 36.32% presented binding offers to sell MTS-CeTO shares to the WSE. Together with the WSE’s current stake of 31.15%, this gives 67.47% of the company’s capital. The WSE intends to acquire a stake in MTS-CeTO enabling the determination and implementation of the company’s growth strategy.
A record-high monthly volume of trading in currency exchange futures contracts (12,999 contracts) was reported in August. The previous record of 7,327 contracts was reported in July 2008. The volume was 6,101 currency exchange contracts in 2007. The volume of trading was 48,702 contracts in 2008 (January-August).
Key Statistics
|
Percentage Index Change in August |
Year to Date |
|
|
WIG20 |
-5.6% |
-24.9% |
|
MWIG40 |
-4.2% |
-40.5% |
|
SWIG80 |
-2.3% |
-36.7% |
|
WIG |
-4.5% |
-27.3% |
|
WIG-PL |
-4.6% |
-27.1% |
135 companies on the Main List showed positive returns.
|
Highest Growth in Stock Prices in August |
|||
|
Company |
Price at 31.07.08 |
Price at 29.08.08 |
% Change |
|
01NFI |
1.34 |
2.05 |
53.0 |
|
13FORTUNA |
1.45 |
2.19 |
51.0 |
|
SOBIESKI |
147.00 |
222.00 |
51.0 |
Trading in the cash market was PLN 20,047 million, down 29% month on month. Trading in the futures market was PLN 34,492 million, down 27% month on month.
|
Trading in Instruments (PLN M) |
|
|
Shares and rights to shares ** |
19 846 |
|
Bonds** |
185 |
|
MiniWIG20 |
0.5 |
|
Futures Contracts |
|
|
Value* |
34 471 |
|
Volume (#) |
674 131 |
|
Options |
|
|
Value* |
20.7 |
|
Volume (#) |
25 350 |
|
|
|
|
* based on the value of contracts/options |
|
|
** excluding block trades |
|
|
Primary Market (regulated market
+ NewConnect) |
||
|
|
August 2008 |
July 2008 |
|
|
5 160 521.6 |
3 132 750 |
|
|
0.00 |
0.00 |
|
|
0.00 |
0.00 |
|
|
5 160 521.6 |
3132750 |
For more statistics see Monthly Statistics
NewConnect
NewConnect celebrated its first anniversary on 30 August. The creation of NewConnect was a milestone in the history of the Warsaw Stock Exchange and an important event for the entire Polish small business community. The new connection between companies and the public market quickly became the best growth option chosen by several dozen Polish companies. NewConnect is also complementary to the WSE regulated market. The new market offers a space for new, dynamically growing companies to raise capital faster and cheaper than on the regulated market. On this occasion, the WSE published a Report summarising the first 12 months of operation of NewConnect.
The NewConnect “Road to Maturity” report is available on www.newconnect.eu
IPOs
LUSATIA debuted on NewConnect on 13 August. The company’s core business is clothing production: coats, jackets, trousers and skirts as well as horse-riding trousers, protective clothing and hunting clothes as well as uniforms from heavy textiles. The company is the exclusive distributor in Poland of Bugatti men’s clothing produced by the German F.W. Brinkmann GmbH.
PHARMENA listed on 25 August. The company’s core business includes the production and sale of dermocosmetics manufactured using patented active ingredients as well as research and development on active ingredients. The company holds a stake in Cortria Corporation in the USA where it continues R&D work started in Poland in order to register an innovative sclerosis medication in the US and Canadian market.
The company Ekopol Górno?l?ski Holding was listed on NewConnect on 27 August. The company’s core business is to sell and store liquid fuels (diesel and petrol) and heating oil, to sell and store diesel for clients at Fuelmaster micro filling stations, and to sell and process metallurgical products. The company has around 250 customers of products, goods and services.
At the end of August 2008, 64 companies were listed on NewConnect, including 40 new listings in 2008.
Key Statistics
|
Percentage Index Change in August |
Year to date |
|
|
NCINDEX |
-7.0% |
-60.8% |
20 companies listed on NewConnect showed positive returns.
|
Highest Growth in Stock Prices in August |
|||
|
Company |
Price at 31.07.08 |
Price at 29.08.08 |
% change |
|
DORADCY24 |
0.23 |
0.29 |
26.1 |
|
ZAKUPY |
0.82 |
1.03 |
25.6 |
|
CENTKLIMA |
10.33 |
12.23 |
18.4 |
Trading in shares and rights to shares on NewConnect was PLN 28 million, down 48% month on month.
|
Trading in Instruments (PLN M)* |
|
|
Shares |
26.8 |
|
Allotment certificates |
1.1 |
|
* excluding block trades |
|
For more information see the NewConnect website.
