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- The share of foreign investors in equities trading on the WSE Main Market remains high;
- Significant increase in the share of institutional investors in trading on the alternative market;
- Growing share of foreign investors in derivatives trading.
After the end of the year 2011, the Exchange has carried out its regular study of the share of investor categories (foreign investors, domestic institutional investors and domestic individual investors) in trading in financial instruments on the WSE. According to the traditional methodology, the share of each investor category is based on the results of a survey addressed to domestic brokers.
WSE Main Market – equities trading:
According to the survey, foreign investors had a dominant share in equities trading on the Main Market in both H1 and H2 2011. Foreign investors generated 47% of equities trading in all of 2011. The biggest share among foreign brokers both in H1 and H2 was that of UK brokers (55% and 53%, respectively), followed by French brokers (21% and 22%, respectively).
Domestic financial institutions maintained the second largest share in equities trading and generated 35% of total trading in all of 2011. The biggest share in H1 was that of investment funds (31%) and in H2, market makers (34%); the share of pension funds decreased modestly (21% of trading by all institutional investors in H1, 19% in H2).
The share of individual investors was stable. Domestic individual investors generated 18% of equities trading in H1 and 19% in H2. The share of this investor category in trading in all of 2011 was 18%. Importantly, the growing share of individual investors in H2 brings a reversal of the downtrend affecting the activity of this investor category as of 2009.
For the first time in the history of the survey, the figures reported in 2011 were practically identical to those revealed by the survey a year earlier. The stability of the share of each investor category in equities trading is particularly relevant in view of the growing volume of equities trading, which suggests that all investor categories are increasingly active.
NEW/CONNECT:
In the past year, while NewConnect broke new records of the number and value of IPOs, individual investors retained their biggest share in trading as they generated 75% of all volumes in H2 and 77% in all of 2011.
It is important to note that domestic institutions became more active. Their share in trading on NewConnect was 22% in H2, a record-high figure in the history of the market. Domestic institutions generated 20% of trading on NewConnect in all of 2011. Among them, the biggest share is still that of private companies, which generate more than half of all equities trading.
DERIVATIVES MARKET:
Individual investors also have the dominant share in derivatives trading. Individuals generated 46% of trading in futures, the lowest share of this investor category in the history of our survey. Meanwhile, domestic institutions and foreign investors generated record-high trading in futures in 2011, at 38% and 16%, respectively. Foreign investors generated 24% of trading in options in 2011 (27% in H1 and 21% in H2).
