The turnover of the Vienna Stock Exchange will decrease from 68.9 million euros to 66.8 million euros in 2019. 84 percent of sales are generated with international customers. Pre-tax profit is down 6.4 percent to EUR 34.2 million. The result is slightly above the expectations of the Austrians.
In both Vienna and Prague, trading activities declined in the past year. Vienna will have a value of 62 billion euros in 2019 (previous year: 70 billion euros). In Prague there is a drop of 24 percent to 8.5 billion euros. On the one hand, those responsible see reasons for the minus in Brexit, on the other hand, American investors have moved a lot of money back to their homeland.
The Vienna Stock Exchange is expecting a significant increase in all areas for 2020, as can be seen at today’s annual press conference. From January to May 2020, the trading volume rose by 21.4 percent to EUR 32.03 billion.
Christoph Boschan, CEO of the Vienna Stock Exchange, hopes that more local buyers will get involved on the stock exchange: “I don’t want to hide, however, a stronger domestic shareholder base would not be just jewelry for the stock exchange, but a solid support for crisis management and corporate financing. Countries with developed capital markets show more growth and recover faster from crises. ”
He is also betting on the reintroduction of a retention period that was abolished in 2012. Long-term engagements of private investors are to be promoted, the investor base could be broadened. This would mean that income from capital gains tax of up to 2 billion euros would be lost, but this would be more than offset by the positive ecological effects from the retention period.
Boschan explains his demand: “Companies will need equity capital for their recapitalization in order to cope with the crisis in autumn. In order for Austria’s economy to go uphill more quickly, the path taken by the government before Corona needs to be continued quickly. ”
Heimo Scheuch, Chairman of the Supervisory Board of the Vienna Stock Exchange, adds: “With regard to post-corona times, the state is well advised to activate private capital and put it on the stock exchange so that Austria’s economy can go uphill more quickly.”