- Equity turnover in Q1 2022 at 10-year high of EUR 24.5 billion
- Pierer Mobility AG joins prime market; new listing in direct market
- With 2,102 new bonds, Vienna is one of the most active debt listing venues in Europe
- Trading of Russian shares and calculation of Russian indices halted
- Private investors with patience look calmly at long-term equity returns
The first quarter on global stock markets was marked by turbulence following Russia's military conflict with Ukraine. In light of this, Austrian share prices fluctuated with high trading volumes. In the first quarter, the Austrian national stock exchange recorded an equity turnover totalling EUR 24.52 billion, a fifth more than in the equally strong previous year (Q1 2021: EUR 20.49 billion). The two-wheeler pioneer Pierer Mobility AG has been listed on the prime market since 1 March. Lekta Therapy Ltd. has been tradable on the direct market since January. In terms of new debt instruments, the Vienna Stock Exchange was able to attract a record number of 2,102 new listings for its listing venue. Thanks to more than 120 issuers, including international names such as BBVA, Castor SpA, Marex or mBank, the Vienna MTF is the fastest growing debt listing platform in Europe.
"Russia's invasion of Ukraine is moving Europe and the whole world. In addition to the dramatic humanitarian effects, the war is certainly also reflected on the financial markets. The energy transition is becoming a pressing issue. More urgently than ever before, large amounts of capital are needed for investments so that implementation can be accelerated. A strong capital market can contribute decisively to a faster and better transformation. To make the best use of this leverage in Austria, the measures in the government programme should be implemented quickly. The reintroduction of the one-year retention period on equity investments is an incentive for private investors to provide for the long term and to make capital available for innovation," said Christoph Boschan, CEO of Wiener Börse AG.
Among the approximately 800 securities in Vienna’s global market segment, 17 Russian Depository Receipts (ADRs, GDRs) are quoted. In line with other European markets, these securities are suspended from trading until further notice. Some of the 150 benchmarks also track the Russian equity market. The calculation of these benchmarks is currently suspended, presumably as long as international trading participants have no access to the Russian stock exchange and the sanctions remain in place.
Equity turnover hits 10-year high in first quarter of 2022
The year 2022 starts with trading volumes at a persistently high level. Market participants generated a total equity turnover of EUR 24.52 billion on 64 trading days (January: EUR 6.31 billion; February: EUR 7.89 billion; March: EUR 10.32 billion). 80% originated from international trading members. With Monday, 28 February 2022, the strongest trading day in the quarter (EUR 911.41 million) did not fall on an expiry day. The average daily turnover was EUR 383.15 million in comparison. The most actively traded Austrian shares in the first quarter were Erste Group Bank AG (EUR 4.60 billion), OMV AG (EUR 3.49 billion), Raiffeisen Bank International AG (EUR 2.64 billion), Verbund AG (EUR 1.82 billion) and voestalpine AG (EUR 1.54 billion).
A long-term investment horizon pays off for retail investors
Share prices suffered a setback on all developed markets in the first quarter. The Austrian national index ATX TR (including dividends) fell to 6,733.73 points after reaching an all-time high on 8 February (8,251.98 points). Year-to-date the index declined by 14.21% (ATX without dividends -14.24%, 3,311.05 points). While some shares recorded heavy losses in the short term, others posted strong gains. Among the biggest winners in the top segment prime market were Schoeller-Bleckmann Oilfield Equipment AG (+57.84%), AT&S Austria Technologie & Systemtechnik AG (+16.40%) and FACC AG (+13.48%). As of 31 March 2022, the market capitalisation of companies listed on the Vienna Stock Exchange amounts to EUR 125.06 billion, a level last seen in spring 2021. Since its launch in 1991, the Austrian benchmark index ATX has shown an average annual return of over 6% despite all the crises and disturbances.
"Investors can permanently minimise the risk of equity investments by making long-term, regular and broadly diversified investments. Smaller markets react more strongly to external influences, this is just as true in times of crisis as in times of boom. On a long-term average, returns of the Austrian stock market are in line with other developed capital markets," explains Christoph Boschan and is convinced that "the advantages of Austrian companies, such as their stable planning, exemplary crisis management and attractive dividend policy will stay in demand in the coming years."
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Trading on the Vienna Stock Exchange in Q1 2022 (png-file 100 KB)
Record number of debt listings (png-file 60 KB)
