News
February 2009 on the Warsaw Stock Exchange
The “Best Practice of Public Statements by Professional Capital Market Participants” was adopted by the Education and Information Governance Council on 4 February. The document is available on the website www.odpowiedzialni.gpw.pl.
The sixth series of express structured certificates linked to the WIG20 index was introduced to trading on 4 February. The certificates were issued by Deutsche Bank AG, London Branch. At the end of February 2009, the WSE listed 55 structured products, including 10 bonds and 45 certificates.
On 5 February, the WSE published the change of the composition of its indices effective after the trading session on 20 March 2009 as a result of the annual verification process.
In the WIG20 index portfolio, the company CYFROWY POLSAT will replace the company POLNORD.
The mWIG40 index portfolio will change as follows:
- new index members: POLNORD, KOGENERACJA, TRAKCJA, PEP;
- outgoing index members: CYFROWY POLSAT, KREDYT BANK, DUDA, GRAJEWO.
The sWIG80 index portfolio will change as follows:
- new index members: KREDYT BANK, DUDA, GRAJEWO, NEPENTES, CENTROZAP, PEGAS, ORCOGROUP, WAWEL, MENNICA, KRUSZWICA, QUMAKSEKOM, OPTOPOL, POINTGROUP, BBICAPNFI;
- outgoing index members: KOGENERACJA, TRAKCJA, PEP, BYTOM, PROJPRZEM, ACTION, TECHMEX, ULMA, PAGED, JUPITER, YAWAL, CAPITAL, ABPL, ZNTKLAPY.
On 6 February, the WSE Management Board adopted a resolution amending the standard specification of WIG20 and mWIG40 index futures contracts and WIG20 index options. The resolution entered into force on 19 February and amends the method of calculation of the final settlement price for the WIG20 and mWIG40 index futures contracts as well as the settlement price for the WIG20 index options on the expiry date.
On 6 February, the WSE head office hosted the European Commission’s Euro Team Information Seminar. During the Seminar, Commission experts presented opinions on the Economic and Monetary Union and the adoption of the common European currency in further member states.
The Euro Team Seminars have so far been held only in Brussels. The event at the head office of the Warsaw Stock Exchange was the first ever Seminar to be held outside the EU capital.
On 11 February, the US company Wedbush Morgan Securities became the 18th WSE IPO Partner and the third WSE IPO Partner in the USA. Wedbush Morgan Securities is a leading global investment company offering brokerage services to individuals and institutions, investment banking and private equity services, research and asset management. Wedbush Morgan Securities specialises in services meeting the financial needs of medium-sized companies through IPOs, private placements and advisory.
On 12 February, WSE President Ludwik Sobolewski received the Business Leader of the Year award of the Warsaw Business Journal. WBJ Editor-in-Chief Andrew Kureth presented the award to Ludwik Sobolewski for having steered the bourse through the difficult year 2008 and for having a clear vision for the WSE’s future.
The Warsaw Business Journal said that it awarded the Warsaw Stock Exchange which has become the unquestionable CEE leader despite the very difficult year. The WSE is the region’s unparalleled champion both by capitalisation and the number of IPOs.
On 17 February, the WSE and Goldman Sachs Group, Inc. signed a licence agreement concerning the use of the name of the WIG20 index in issuing financial instruments. The WSE had previously signed licence agreements with 14 partners (Deutsche Bank, ABN AMRO, Societe Generale, Citibank International, Bayerische Hypo- Und Vereinsbank, Rabobank, Erstebank, Volksbanken, Banco Millennium BCP, Commerzbank, J.P. Morgan, BNP PARIBAS, Merrill Lynch International, Goldman Sachs Group, Inc.).
The gala ceremony entitled “2008: Investment Companies and the WSE Market – Success in Difficult Times” was held at the Capitol Theatre in Warsaw on 19 February. During the event, the WSE presented its 2008 awards to market participants.
Awards for market participants who contributed to the growing attractiveness of the stock market by helping to build a liquid primary market:
1) Highest share in equity turnover value on the WSE Main List in 2008, excluding market maker transactions – ING Securities SA.
2) Highest share in derivative instruments turnover value in 2008, excluding market maker transactions – Dom Maklerski Banku Ochrony Środowiska SA.
3) Highest share in equity turnover value on NewConnect in 2008, excluding market maker transactions – Dom Maklerski BZ WBK SA.
The awards for foreign exchange members:
1) Highest share in equity turnover value on the markets organised by the WSE in 2008, excluding market maker transactions – Wood & Company Financial Services, as.
2) Highest share in derivative instruments turnover value on the markets organised by the WSE in 2008, excluding market maker transactions – UniCredit CAIB AG.
Awards for supporting the liquidity of the stock market:
1) Most active market maker in equity trading on the WSE Main List in 2008 – Dom Maklerski Banku Handlowego SA.
2) Most active market maker in derivative instruments trading on the WSE Main List in 2008 – Dom Maklerski Banku Ochrony Środowiska SA.
3) Most active market maker on NewConnect in 2008 – Dom Maklerski PKO BP.
Special awards:
1) Active development of structured products in 2008 – Raiffeisen Centrobank AG.
2) First debut on the WSE Main List in 2009 – Centrum Klima SA.
3) First IPO on the WSE Main List in 2009 – Bumech SA.
4) First move from NewConnect to the WSE Main List – MW Trade.
The First CEE Financial Center Meeting was held at the head office of the WSE on 18 and 19 February 2009. The meeting of the CEE financial sector was organised by WM Gruppe, the publisher of the Frankfurt-based daily Borsen-Zeitung, and the Warsaw Stock Exchange.
The two-day event was a forum for the CEE financial industry to exchange information and opinions and to discuss the current status of co-operation between regulators, issuers, intermediaries, stock exchanges, settlement agencies, investors, and information vendors.
WSE President Ludwik Sobolewski delivered the presentation “The Warsaw Stock Exchange as a CEE financial hub,” highlighting the benefits offered by the Warsaw market to market participants.
The Warsaw Stock Exchange and the Polish Information and Foreign Investment Agency signed a co-operation agreement on 18 February.
Under the agreement, the WSE and the Agency shall co-operate in promoting investment opportunities in Poland. The parties will also inform potential issuers about opportunities of raising growth capital on the WSE, mainly from foreign investors in Poland. The WSE and the Agency will exchange information about investment support instruments available on the Polish market.
The agreement creates additional opportunities of promotion of the WSE outside of Poland and supports building the WSE’s international reputation in the international investor community.
On 23 February, the Warsaw Stock Exchange appointed the Bond Market Development Committee to support the development of an organised debt securities market. The main goal of the Committee is to prepare key solutions for the development of a new bond market. The tasks of the Committee are, among others, to define the background and to open discussion on the main conditions of development of an organised debt securities market in the broad sense, including the activity of investors, corporate and municipal issuers, business advisors, investment risk agencies.
The Committee members are: Henryka Bochniarz – President of the Polish Confederation of Private Employers “Lewiatan”; Jacek Jonak – Jacek Jonak Kancelaria Radcy Prawnego, Stefan Kawalec – President, Capital Strategy; Wojciech Kostrzewa – CEO and General Director, ITI Group; Krzysztof Pietraszkiewicz – President, Polish Bank Association; Jacek Socha – Partner, PricewaterhouseCoopers; and representatives of the WSE Management Board.
The Warsaw Stock Exchange and the Belorussian Currency and Capital Exchange (Belorusskaya Valuto-Fondovoya Birzha) signed a Memorandum of Understanding on 23 February 2009 in Minsk. Beata Jarosz, WSE Management Board Member, signed the MoU on behalf of the WSE.
The MoU aims to build a favourable investment climate and foster co-operation between the financial markets of Poland and Belarus. Pursuant to the MoU, BVFB and the WSE will develop directions of further co-operation and identify the WSE’s experience in EU capital markets useful to BVFP.
Key Statistics
92 companies on the Main List reported positive returns.
Trading on the cash market was PLN 31,631 million, up by 14% month to month. Trading on the futures market was PLN 28,308 million, up by 6% month on month.
For more statistics see Monthly Statistics
New Listings
Read-Gene was listed on 12 February, the second IPO in 2009 and the 85th NewConnect listing. Read-Gene is a company of innovative technologies whose aim is to commercialise methods of detection, prevention and treatment of the most common types of malignant tumours. The core business of the company includes clinical trials, DNA testing, chemoprevention, drug repositioning.
Market Members
Wood & Company Financial Services a.s. with its seat in Prague is a NewConnect market member since 9 February, the second member in the Czech Republic after Cyrrus a.s. Wood&Company is a WSE Main List market member since 2005 and a WSE IPO Partner since March 2007. It offers direct access to the stock exchanges in Prague, Warsaw, Frankfurt, Budapest, Vienna, Bucharest and Sofia. Wood & Company a.s. offers services including advisory, mergers and acquisitions, investment project finance, IPOs and floatations.
There are currently 29 NewConnect market members.
Market Animators
DOM MAKLERSKI POLONIA NET S.A. is a NewConnect Market Animator since 2 February.
Other events
On 6 February, the economic monthly Nowy Przemysł presented its prestigious awards to “those who have change the Polish industry.” The NewConnect market received a special award in this year’s ninth edition of the awards.
New Przemysł stressed that NewConnect gives many small and medium-sized companies the only chance to raise growth capital, thus bridging an acute capital gap on the financial market. “The NewConnect platform changes the face of the Polish economy, stimulates its growth, and should be supported and promoted,” said the award panel.
Nowy Przemysł awards companies, institutions, public figures and events that have made the biggest impact on economic transition over the past year. Rather than awarding life-time achievements, Nowy Przemysł acknowledges specific actions transforming the Polish economy. The award panel considered NewConnect to represent such a milestone.
The seminar devoted to introduction of financial instruments into trading on NewConnect was held on 17 February on the NewConnect floor. The seminar was attended by around 130 representatives of NewConnect Authorised Advisors as well as potential issuers. The seminar was an opportunity to exchange experience and establish contacts with the WSE and other institutions supporting the operational procedures of introduction of financial instruments into trading on NewConnect. It also fostered a close understanding of all practical aspects of the process of introduction of shares into trading on NewConnect.
On 19 February, the NewConnect floor hosted the seminar “Equity Needed Now: How to Turn Good Ideas into Capital. Venture Capital and Private Equity Funds and NewConnect: Competitors or Allies?”
Johan Gorecki, one of the founders of Skype, was the event’s guest of honour. He delivered the key-note address entitled “Is the global crisis an opportunity for PE/VC growth?”
Key Statistics
For more information see the NewConnect website.