2024-01-06 18:36:18
Eastern European stocks are traditionally less on German investors’ radars. That can be a mistake, as the year just ended has impressively shown. The leading indices on the stock markets in Budapest (BUX) and Warsaw (WIG 20), measured in euros, delivered a return that was around twice as high as the Dax. Even the BET on the Bucharest Stock Exchange, which saw the largest IPO in Europe with Hidroelectrica in 2023, did better than the Dax in Frankfurt. And with its 20 percent increase, it was well ahead of the Vienna Stock Exchange, whose ATX only gained 9.9 percent. However, if you add the dividend yield of 6 percent, the difference to the DAX, which includes dividend payments, is no longer that big.
Andreas Mihm
Economic correspondent for Austria, East Central and Southeast Europe and Turkey based in Vienna.
Nevertheless, Vienna’s distance from other markets in East Central Europe (CEE) is noticeable, as the Vienna Stock Exchange traditionally sees itself as a gateway to the East. However, the proportion of companies listed on the ATX with business relationships in the region is falling. After once more than 80 percent, today it is still 70 percent, says Fritz Mostböck, head of research at the Austrian Erste Group. The bank is the largest financial institution in the region, which sees it neglected by international investors. The 23 percent decline in sales in the Vienna Stock Exchange’s equity business in 2023 is a striking example of this.
#Eastern #Europe #offer #investors #opportunities