- Foreign investors generated 49% of trading in equities on the WSE Main Market (no change YoY), institutional investors 38% (+1 percentage point YoY) and retail investors 13% (-1 percentage point YoY)
- Retail investors remained in the lead on NewConnect with a share of 62% of trading in H1 2014 but the share of domestic financial institutions increased steadily
- The share of retail investors in option trading grew significantly in H1 2014 (48%, +10 percentage points YoY).
WSE Main Market
Foreign investors generated the biggest part of trading in equities on the Main Market in H1 2014, similar to the previous years. They contributed 49% of equities trading. The share of foreign investors in financial instruments trading did not change compared to H1 2013. However, compared to H2 2013, the share of foreign investors in trading on the Main Market increased from 45% to 49%.
Domestic financial institutions generated 38% of trading in H1 2014. Market makers and investment funds were the leading groups of domestic institutions (39% and 38%, respectively).
The share of retail investors in trading in equities on the Main Market was 13% compared to 16% in H2 2013. Compared to H1 2013, the share of retail investors decreased by 1%.
Table 1. Investor structure on the Main Market in equities
Source: WSE survey of investment firms, estimates
NewConnect
On NewConnect, retail investors remained in the lead and generated 62% of trading in H1 2014. Foreign investors contributed 6% of trading in the period. The share of domestic financial institutions is growing steadily as they generated 32% of trading. Investment funds were the leading group of domestic institutions and accounted for 51% of trading in equities.
Table 2. Investor structure on NewConnect
Source: WSE survey of investment firms, estimates
Derivatives Market
Domestic retail investors were in the lead in H1 2014 also on the derivatives market. Their share in trading was 46% compared to 35% for domestic institutions and 19% for foreign investors. The share of retail investors in trading in options increased significantly: retail investors generated 48% of trading in the period compared to 10% for foreign investors (down from 21% in H2 2013) and 42% for institutional investors (down from 44% in H2 2013).
Table 3. Investor structure on the futures market
Source: WSE survey of investment firms, estimates
Table 4. Investor structure on the options market
Source: WSE survey of investment firms, estimates
WSE conducted a survey of the share of different investor groups (foreign investors, domestic institutional investors, domestic retail investors) in trading in financial instruments on the market in H1 2014. According to the applied methodology,* the share of each investor group is based on the results of a survey of domestic brokerage houses while annual figures are based on semi-annual numbers.
* The survey covered 29 domestic WSE members who completed questionnaires distributed by WSE. The respondents provided specific figures. The structure of foreign clients of Exchange Members was estimated using a modified method. The activity of market makers and management of clients’ portfolios were included in the category of domestic institutional investors. The survey covered session trading on WSE.
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Warsaw Stock Exchange is the biggest securities exchange in Central and Eastern Europe. WSE organises trading on one of the most dynamically growing capital markets in Europe. WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. WSE is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, WSE is a public company listed on Warsaw Stock Exchange. For more information visit http://www.gpw.pl.
