Vienna Stock Exchange Overcomes Challenges in 2023 with Record Bond Listings
The Vienna Stock Exchange experienced a challenging year in 2023, characterized by high interest rates, persistent inflation and geopolitical tensions affecting the European equity markets. Despite these unfavorable conditions, which impacted trading activity, the exchange achieved a record year for bond listings.
In 2023, European stock markets faced challenges like high interest rates, inflation, and geopolitical tensions, but the Vienna Stock Exchange saw a record year in bond listings. / Picture: © Wiener Börse AG / VSE Vienna Stock Exchange
AUSTRIACARD HOLDINGS AG and EuroTeleSites AG joined the top Prime Market segment, while RWT AG expanded the Direct Market Plus segment for SMEs. In addition, Wolford AG, BKS Bank AG, Lenzing AG, and Kapsch TrafficCom AG carried out capital increases to raise equity.
Christoph Boschan, CEO of the Vienna Stock Exchange, emphasized that the year 2023 must be viewed from two perspectives. On the one hand, economic conditions harmed trading activity, while on the other hand, the exchange was able to continue with its plans in areas such as the custody business in Prague, IT services, and bond listings.
After the COVID-19 pandemic and the outbreak of war between Russia and Ukraine had caused high trading activity in recent years, 2023 was a year of lower volatility. Share turnover is estimated at 54.6 billion euros.
The exchange gained Barclays Bank Ireland PLC as a new trading member, bringing the total number of members to 69, including 21 Austrian and 48 international banks and investment firms. The international trading members generate around 86% of share turnover in Vienna. A large proportion of turnover comes from Germany (48.7%), France (21%) and Ireland (10.9%).
The Vienna MTF surpassed the record year 2021 with over 8,000 new bonds. In addition, the Vienna ESG segment for sustainable bonds exceeded the 100 listings mark for the first time.
The ATX Total Return rose by 14.74% over the year, closing at 7,569.56 points on December 28. The ongoing war in Ukraine led to restraint on the part of international investors, which had a particular impact on Austrian companies.
The top performers on the ATX were Immofinanz AG, EVN AG, and Telekom Austria AG. The market capitalization of all companies listed in Vienna amounted to 124.9 billion euros at that time.
Boschan pointed out that the war-related caution of international investors, particularly from the USA, affected the entire European stock market. Austrian companies felt this disproportionately due to their pronounced business activities in the CEE region. At the same time, he emphasized the growth potential in Central and Eastern Europe.