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The number of WSE listed companies has grown by more than 23 percent over the past 12 months, from 240 in April 2006 to 296 at the end of April 2007. This represents the highest growth among all European members of the World Federation of Exchanges. The concentration of trading on the WSE has decreased thanks to the growing number of listed companies.
The concentration of trading in the shares of the 5 most liquid WSE listed companies was 28 percent. The WSE ranked third in Europe, after the London and Paris Exchanges. By comparison, the concentration was 96 percent on the Budapest Exchange and 85 percent on the Prague Exchange in April 2007.
A low concentration means that the trading on the market is relatively well distributed among all listed companies rather than concentrated in a small group of the largest issuers. This proves that the market accommodates many companies attractive to equity investors. The Polish market offers shares of Polish and foreign companies of different caps from a range of sectors and industries.
The WSE concentration ratio has been steadily decreasing, from 60 percent in April 2005 to 41 percent in April 2006 to 28 percent now. The concentration on the Budapest Exchange has remained stable at 95, 91, and 96 percent respectively. The concentration ratio on the Prague Exchange has increased from 79 percent in April 2005 to 84 percent in 2006 to 85 percent in April 2007. The concentration on the Vienna Exchange has been decreasing, just like on the WSE, but slower than in Poland. In April 2005, the concentration on the Wiener Boerse was comparable to the WSE at 59 percent (60 percent on the WSE) and now it is 45 percent.
WSE investors have a choice of more than 300 equities, compared to 116 on the Vienna Exchange, 40 on the Budapest Exchange, and only 31 on the Prague Exchange.
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Source: FESE
