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- Equity turnover on the Vienna Stock Exchange up 10.46%
- Sector structure slows down recovery of the ATX Total Return: -33.09% in 2020
- Capital increases and record high for bond listings
- Activating private capital for society and the economy
This year the Corona crisis, with its massive restrictions on the economy, has taken hold of stock markets worldwide. By the end of September 2020, the equity turnover increased by 10.46% in comparison to last year. This puts the Vienna Stock Exchange in the European midfield in terms of turnover development on stock markets. The national index ATX including dividends is down 33.09% due to the heavy weighting of the financial, oil and steel sectors. The cyclical composition of the ATX is currently causing a steeper downturn, whereas in an economic upswing it also rises disproportionately.
"Corona teaches patience to investors. In the long term, despite several crises, stocks represent one of the most lucrative investment forms and offer many opportunities. Only those who sow steadily will be able to reap later," says Christoph Boschan, CEO of the Vienna Stock Exchange. He argues in favour of a one-year retention period from the capital gains tax as an incentive for investors. "Investing must be made easier in order to activate private capital and make it available to society and the economy. Long-term investors should be able to use their already taxed labour income tax-free". According to Boschan, this could be decisive for the future of Austria, because government packages worth billions will not be enough to overcome the crisis. A strong private economy, innovation and a functioning capital market can make all the difference.
Expanded product range with positive effects on turnover
After an exceptionally strong first quarter with high volatility, share turnover leveled off in the second and third quarters. At the end of Q3, equity turnover totalled EUR 52 bn. This is a gain of 10.46% versus the same period of the preceding year (01-09 2019: EUR 47 bn). The average monthly turnover is EUR 5.77 bn. The strongest trading days in 2020 were the Triple Witching days 19 June (EUR 915 m) and 20 March (EUR 777 m) followed by 9 March (EUR 745 m). The most actively traded Austrian stocks were Erste Group Bank AG with EUR 9.10 bn, ahead of OMV AG with EUR 7.10 bn and Raiffeisen Bank International AG with EUR 4.29 bn. In fourth and fifth place were voestalpine AG (EUR 4.14 bn) and Verbund AG (EUR 3.34 bn).
Strategic initiatives also contributed to equity turnover. In the second-largest segment, the global market, which was established in 2017, EUR 2.63 bn in turnover was reported in the course of the year. This is an increase of 73.53% compared to the previous year. The global market currently offers a selection of 718 securities from 26 countries. Trading opportunities on Austrian public holidays are also well received. In 2020, trading was offered on three Austrian public holidays, generating additional turnover of EUR 649 m. The infrastructure of the Austrian marketplace – from trading to settlement – will also be available on 8 December (Immaculate Conception). In 2021, the Vienna Stock Exchange will be open on five Austrian public holidays.
Capital increases and boom in bond listings
Two companies have so far raised fresh equity capital: Immofinanz AG (EUR 171.6 m) and S Immo AG (EUR 148.9 m). In terms of debt listings, the Vienna Stock Exchange is heading for a record year. By the end of September, more than 1,900 bonds with a total volume of around EUR 112 bn had already been listed on the Vienna Stock Exchange. 78% of the listed bonds were issued by foreign issuers. This makes Vienna one of the fastest growing debt listing venues in Europe.
Corona teaches patience on the exchanges
The Austrian leading index ATX including dividends held at 4,099.14 points on 30 September 2020, losing 33.09% in the course of 2020 (excl. dividends 33.83%). It reached its annual high of 6,208.00 points on 2 January. Compared with the year's low of 3,135.05 points on 18 March, the ATX Total Return had regained 30.75 % by the end of September. Compared with other national indices, the setback was more severe due to its sector composition, which is highly dependent on economic developments. 45% of the companies are classified in the financial sector, 29% in basic industries and 12% in industrial goods & services, both of which are heavily dependent on commodity prices. The remaining 14% are divided between the utilities, technology & telecom and consumer products. The market capitalization of all domestic companies listed on the Vienna Stock Exchange was EUR 86.75 billion as of 30 September 2020.
Download infographic: Vienna Stock Exchange Q1-Q3 2020 (jpg-file 660 KB)
