Despite unfavourable trends and sentiment on global exchanges, the two markets operated by the WSE saw 6 new listings in November: 2 on the Main List and 4 on NewConnect.
Listing of ENEA SA, the first Polish energy distributor to go public on the WSE, was November’s milestone. This was one of the biggest transactions on the European markets of the year, and the event was broadly reported by international financial media. ENEA’s offer was the largest floatation by value of new shares since May 2007.
New rules of submitting current reports of companies are an important change of Exchange regulations both for issuers and investors. They were introduced in November and are effective as of 2009. Listed companies will be allowed to submit current reports during trading sessions starting on 1 January 2009.
WSE Main Market
New Listings
The company ENEA SA listed on 17 November. It’s core business is to generate, distribute, and sell electricity. Electricity is mainly generated by the Kozienice Power Plant, the largest coal-fired power plant in Poland by maximum output. The distribution network of ENEA Operator covers around 20% of the territory of Poland and is situated in the north-west of the country.
The company’s share in electricity sales on the Polish market is around 15%. ENEA’s offer worth around PLN 2 billion was one of the largest public offers in the history of the WSE.
The company CHEMOSERVIS-DWORY listed on 25 November. The company provides industrial installation maintenance services. In addition, they offer repair of machinery, equipment and installations as well as construction and assembly services.
Other Events
On 6 November, the WSE published the results of the quarterly verification of WIG20, mWIG40 and sWIG80 index composition, effective after the session of 19 December 2008. After the corrections, the composition of WIG20 remained unchanged.
The composition of mWIG40 changed as follows:- Incoming stocks: COMARCH, HBPOLSKA, MOSTALWAR and SWIECIE;
- Outgoing stocks: IDMSA, MCI, PGF and SANWIL.
- Incoming stocks: 06MAGNA, ACTION, ALCHEMIA, ASSECOBS, AZOTYTARNOW, IDMSA, MCI and PGF;
- Outgoing stocks: BBICAPNFI, COMARCH, IBSYSTEM, KOLASTYNA, HBPOLSKA, MASTERS, MOSTALWAR and SWIECIE.
A meeting with bmp AG was held as a part of the International Companies Information Forum on 13 November. The German company presented its preliminary Q3 results and Q4 plans. The company also presented the current situation of the sector.
Two new structured products were introduced to exchange trading in November:
Structured bonds issued by Barclays Capital with interest paid together with the nominal value on redemption were introduced on 14 November. The amount of the payment to holders on redemption is linked to the performance of a basket of three commodities markets:- sugar (S&P GSCI Sugar Index Excess Return)
- wheat (S&P GSCI Wheat Index Excess Return)
- soybeans (S&P GSCI Soybeans Index Excess Return).
The BZ WBK Przyjazna Planeta (‘Friendly Planet’) certificate was introduced to trading on 17 November. The price of the certificates issued by BNP Paribas is based on a basket of BNP Paribas indices comprising stocks of the following sectors: waste management, water industry, renewable energy, effective use of energy. The BZ WBK certificates are the third product issued by BNP Paribas listed on the WSE.
At the end of November, there were 45 structured products listed on the WSE, including 10 structured bonds and 35 structured certificates.
Renaissance Securities (Cyprus) Limited became the 16th foreign investment company with the WSE IPO Partner status as of 17 November. The company is a member of the international financial group Renaissance Group. The business of the group companies includes investment banking, capital management, brokerage services, and consumer credit.
The goal of the WSE IPO programme established in the autumn of 2006 is to ensure support of foreign brokerage houses for the WSE’s acquisition and promotion efforts in foreign markets.
The following companies hold the WSE IPO Partner status: Altera Finance, Sokrat Capital, Millennium Capital, Financial and Analytical Group Pro-Consulting Ltd., Concorde Capital, Aval-Brok and Fund of Industrial Development in Ukraine; Evli Securities and Hansabank in Estonia (with a presence in the Baltic States and Russia); INFIN in Turkey; Uniter Investment Company JSC and Priorbank JSC in Belarus; Wood & Company and Cyrrus, a.s in the Czech Republic; US Finance Connect LLC in the USA; Renaissance Securities Ltd in Cyprus.
*The Derivatives World CEE conference organised by FOW Part of Euromoney Institutional Investors PLC was held in Warsaw on 19 November 2008. The Warsaw Stock Exchange was the main partner of the conference.
The conference programme included among others:- Exchange Executives Panel “CEE Shines In Its Own Light”, featuring Ms Lidia Adamska, WSE Management Board Member
- Discussion panel “Future of Structured Products” with the participation of Robert Raszczyk, Development of Financial Instruments Department
- Lecture “The Power of Options: Options Trading in CEE” delivered by Jaros?aw Ziebi?c, Director, WSE Financial Instruments Department.
The Derivatives World CEE conference is mainly addressed to all those interested in the development of the derivative instruments market in Central and Eastern Europe.
The WSE CEE Derivatives Forum 2008, Central and Eastern Europe’s biggest derivative and structured instruments conference featuring Polish and international speakers and guests, was held in the head office of the Warsaw Stock Exchange on 20-21 November. The conference programme included among others a debate on the global financial crisis and its impact on the derivative instruments market in Poland, lectures on options and futures contracts, and special workshops for investors.
The CEE Derivatives Forum is an initiative open to all interested individuals and institutions: retail and institutional investors, brokerage houses, banks, capital market institutions, academics and the media. The first derivatives conference was held in 1999, a year after the WSE introduced the first derivative instrument: WIG20 index futures. Organised annually, the forum has remained very popular with participants. This year’s CEE Derivatives Forum had special importance to the WSE: WIG20 index futures were introduced to exchange trading 10 years ago (16 January 1998) and WIG20 options were introduced 5 years ago (22 September 2003); they are the two major derivative instruments traded on the WSE.
The WSE Management Board passed a resolution amending the regulations governing the submission of current reports on 25 November. As of 1 January 2009, the WSE recommendation to publish reports outside of trading sessions will no longer apply. The amendment aims at giving investors the best possible access to market information and consequently at increasing the volume of transactions and improving the liquidity of trading in the shares of companies listed on the Exchange.
Following the Liquidity Support Programme, the modification of these principles is another initiative of the WSE which should have a positive impact on the quality of communication of listed companies with investors.
A three-day “Professional Investor” conference organised by the Association of Individual Investors under the strategic patronage of the Warsaw Stock Exchange was held in Mi?dzyzdroje on 28-30 November. The conference was a training event devoted mainly to practical aspects of investment on the capital market. The conference programme included several workshops and presentations on technical analysis, fundamental analysis, psychology of investing, investment strategies, macroeconomics as well as international technical analysis. The conference also included panels on the current situation on the global exchanges, attractive sectors of listed companies, and attractive valuation of Polish stocks. The conference brought together analysts and capital market practitioners, representatives of the business community and economics, CEOs of listed companies and representatives of other institutions of the capital market. The second day of the conference opened with the presentation “Listed structured products in uncertain times” by Robert Raszczyk, WSE Development of Financial Instruments Department. WSE publications and competitions about the Exchange and structured products offered at the WSE stand were very popular with participants.
The Warsaw Stock Exchange announced in November that it signed an agreement with the Options Industry Council (OIC) for the use of OIC education material for Polish investors. The WSE is the first exchange in Europe to receive a licence. The objective of the Options Industry Council (OIC) is to educate investors in the benefits and risks of investment in options listed on exchange markets.
The WSE is starting to develop educational materials under the licence to be presented on a new WSE website dedicated to derivative instruments. All tools and information on the website will be available free of charge. The website will be launched in several months’ time.
The WSE signed a data vendor agreement with DM Bank Handlowy in November. DM Bank Handlowy will offer its retail customers real-time access to exchange data from the WSE Main List and NewConnect as well as reports of listed companies (EBI).
Including this latest agreement, there are 49 vendors offering access to WSE Main List data and 34 vendors offering NewConnect quotations (21 vendors offer EBI reports).In November, the WSE in co-operation with FERK (Foundation for Capital Market Education) and the brokerage houses of BO? SA and PKOBP SA offered another four investor training sessions on listed futures contracts and options. The training was given in Katowice, Pozna?, Warsaw and Bia?ystok.
Exchange Members
ALIOR BANK S.A. started operations on the WSE on 13 November, including trading in all financial instruments on client’s account. Alior Bank is a new Polish bank established by the Italian financial group Carlo Tassara. Alior Bank is a universal bank serving all market segments in two business lines: retail banking and corporate banking. The Alior Bank brokerage house provides comprehensive capital market services. The brokerage service offer will be available in all Alior Bank branches.
There were 50 Exchange Members at the end of November, including 19 remote members in Hungary, the Czech Republic, Austria, the United Kingdom, France, Germany, Sweden, Slovakia and Estonia.
On 26 November, the WSE informed of the change of the name of the Exchange Member Glitnir AB to HQ Direct AB.
Key Statistics
|
Percentage Change in November |
Jan-Nov |
|
|
WIG20 |
-4.6% |
-49.6% |
|
mWIG40 |
-3.8% |
-61.2% |
|
sWIG80 |
-2.4% |
-55.2% |
|
WIG |
-4.5% |
-51.2% |
|
WIG-PL |
-4.6% |
-50.8% |
115 companies on the Main List reported positive returns.
|
Top Gainers in November |
|||
|
Company |
Price on 31.10.08 |
Price on 28.11.08 |
% change |
|
PLASTBOX |
7.80 |
13.45 |
72.4 |
|
SKYLINE |
3.29 |
5.39 |
63.8 |
|
06MAGNA |
1.08 |
1.71 |
58.3 |
Trading on the cash market was PLN 22,367 million, down 39% month on month. Trading on the futures market was PLN 33,136 million, down 43% month on month.
|
Trading in Instruments (PLN million) |
|
|
Shares and rights to shares** |
21,646 |
|
Bonds** |
355 |
|
MiniWIG20 |
0.7 |
|
Futures Contracts |
|
|
Value* |
33 094 |
|
Volume (units) |
975 908 |
|
Options |
|
|
Value* |
41.4 |
|
Volume (units) |
25,861 |
|
|
|
|
* based on the value of contracts/options |
|
|
** excluding block trades |
|
Primary market (regulated market + NewConnect) in November
|
|
November 2008 |
October 2008 |
|
Value of new issues of market entrants and listed companies. |
2111324006.92 |
13954500 |
|
Value of old shares sold by market entrants. |
0.00 |
0.00 |
|
Value of new issues of market entrants |
1989334261.02 |
0.00 |
|
Value of new issues of listed companies. |
121989745.9 |
13954500 |
For more statistics seeMonthly Statistics
NewConnect
There were 4 new listings on NewConnect in November. There were 78 listed companies at the end of the month, including 54 debuts in 2008.New Listings
The shares of the company HURTIMEX were listed on 4 November. Hurtimex design and manufactures baby and children’s clothes under its own labels: “tup-tup” and “HOOP”. The company is also the Polish distributor of Kanz, Europe’s leading creator of children’s fashion.
The company ART NEW MEDIA listed on NewConnect on 5 November. The core business of the company is trading in artworks and provision of services using art in marketing communication. The company holds 100% of Antiquarius Sp. z o.o., the publisher of “sztuka.pl”, one of the leading opinion-making magazines on the Polish art market.
The company MILKPOL listed on 14 November. The company manufactures mainly dairy products: milk, sour and sweet cream, cottage cheese, soft cheese, kefir, yoghurt, and flavoured butter. The company’s products under the “Czarnocin” label are sold in the region of ?ód? and in Cz?stochowa.
The company INBOOK listed on NewConnect on 27 November. The company’s business is retail trade in consumer products via internet sites, mainly inbook.pl as well as timex.pl, casiomarket.pl, citizen.pl, timemaster.pl, e-zegarki.pl, cud.pl, goldmarket.pl, foteria.pl. The company mainly sells books, CDs and DVDs, gadgets, watches, calculators, and underwear.
Market Members
ALIOR BANK S.A. became a NewConnect Market Member on 13 November. The scope of operation of ALIOR BANK S.A. includes trading in all listed financial instruments on client’s account.
Other Events
On 13 November, the Polish Financial Supervision Authority approved the amendment of the Alternative Trading System Rules introducing block trading on NewConnect. The amendment is effective as of 2 December 2008.
NewConnect hosted a meeting organised by the National Capital Fund (NFC) and the community of innovative entrepreneurs Aula Polska under the patronage of the WSE on 17 November. During the meeting, NFC opened the second edition of a competition for financing Venture Capital funds which invest in start-up projects. The guest of honour was Professor Hermann Simon, a management expert and author of over 30 business books, including the well-known “Hidden Champions”.
In addition to Professor Simon’s presentation, a representative of the NewConnect Development Department of the WSE presented the innovation potential of NewConnect and the platform of co-operation between NC and the VC/PE fund community.
In November, the WSE published the first NCGI (NewConnect Growth Indicator) report based on calculations for H1 2008 (compared to H2 2007 data). The index methodology was developed by a team headed by Professor Maria Sierpi?ska of the Higher School of Finance and Management in Warsaw. The index was calculated by Dr Piotr Szczepankowski, a member of the team.
The full report is available on the website at www.newconnect.pl under “Statistics”.
The WSE completed the assessment of the activity of Group 3 of Authorised Advisers in November.
Following the assessment, the WSE confirmed the status of 18 advisory companies in the group.
Key Statistics
|
Percentage Index Change in November |
Jan-Nov |
|
|
NCINDEX |
-6.9% |
-71.3% |
20 companies listed on NewConnect reported positive returns.
|
Top Gainers in November |
|||
|
Company |
Price on 31.10.08 |
Price on 28.11.08 |
% change |
|
DFP |
1.00 |
1.50 |
50.0 |
|
INWESTCNN |
0.73 |
1.08 |
47.9 |
|
ORZLOPONY |
1.38 |
1.85 |
34.1 |
Trading in shares and allotment certificates on NewConnect was PLN 22 million, down by 26% month on month.
|
Trading in
Instruments (PLN M)* |
|
|
Shares |
20.9 |
|
Rights to shares |
0.6 |
|
*
excluding block trades |
|
For more information see the NewConnect website.
