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„Vienna Is One of the Most Undervalued Stock Exchange in the World“

Published: January 12, 2012; 11:58 · (Vindobona)

According to the investment funds manager Alois Wögerbauer, Vienna has a huge upside potential.

„Vienna Is One of the Most Undervalued Stock Exchange in the World“ / Picture: © www.3bg.at / Corporate Logo

Due to the very bad performance of the Austrian Traded Index, Austrian stocks are strongly undervalued, Wögerbauer says. “The Vienna Stock Exchange is one of the most undervalued in the world.” Alois Wögerbauer is CEO of 3 Banken Generali Invest GmbH.

Despite of the debt- and euro-crisis, Wögerbauer is optimistic for Vienna Stock Exchange. Difficulties in the CEE region and the complexity of the Austrian tax system, led to an outflow of foreign capital.

As a result, in 2010, Vienna Stock Exchange was among the worst performers in the world. Wögerbauer underlines that two thirds of the trade volume at Vienna Stock Exchange are due to foreign investors. A withdrawal of capital would cause a substantial lack in liquidity, which is the most important factor for a stock exchange, Wögerbauer explains. “Because Vienna was so bad in the past, there is an enormous upside potential. And this will come.”, Wögerbauer is convinced.

Wögerbauer recommends fundamental values. Cyclic stocks are not recommended as the real interest rate is still negative, Wögerbauer concludes.