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Dear Readers, The year 2000 can be considered a turning point for the Warsaw Stock Exchange. A seminal event marked that year - the launch of Warset, the new trading system. This was an exceptionally important step in terms of market development and the future of the Exchange. The WSE had been working on the implementation of this system for over two years; it was inaugurated on November 17, 2000. Today, several months into the system's operation it can be said that this project was well prepared and carried out. Thanks to the Warset system, the Warsaw Exchange assumed its place among bourses with state-of-the-art trading systems. Warset brought to the WSE an infrastructure similar to that enjoyed by other markets, for example, the Paris, Amsterdam, and Brussels exchanges. The second important project, realised concurrently with the implementation of Warset, was the new Exchange Centre. Construction of the new building on ulica Książęca in Warsaw began in 1998, the finishing touches were put on it in May 2000, and the building was officially opened in June. The WSE began moving into its new building, and November 17, 2000 marked both the first day of trading in the new Warset system and the inaugural session in new building. Unfortunately, 2000 was not a banner year in terms of market sentiment. Investors did get a taste of success, but only in the first quarter. Record-breaking advances were nonetheless achieved. The WIG, WIG20, MIDWIG, and TechWIG indices set historic records. Their growth was driven mainly by new-economy stocks, which form the basis for the TechWIG index, and are also strongly represented in the other main market indices. The TechWIG achieved nearly 46% growth over the year 2000 as the whole, whereas the WIG lost 1.3% during that time. Rising stock prices in the first three months of 2000 were accompanied by high turnover, by virtue of which the entire year turned out to be record-breaking. Combined turnover in all instruments on the WSE totalled 245 billion zloty - 138% higher than the 1999 figure. Turnover was also the highest of any year in the WSE's history. A significant rise in futures contracts trading, particularly in index futures, took place in 2000. Turnover in these instruments on the Warsaw Stock Exchange was higher than on the exchanges in Vienna, Helsinki, Copenhagen, Oslo, and Lisbon. Market capitalisation, the combined market value of the 225 companies listed at the end of 2000, equalled 130.1 billion zloty and was 5.4% higher than in 1999. The lack of a significant rise in the value of listed companies is a result of the bear market which prevailed starting in the second quarter of the year. As the WSE grew to become the largest exchange in the region, the year 2000 brought continued consolidation on mature capital markets. Poland's exchange cannot turn a blind eye to these challenges, which is why the WSE's future should be viewed in the context of a strategic alliance with its Western counterparts. The amendments made to the Act on Public Trading in Securities allowing foreign entities to acquire stock in the WSE are a step in the right direction. Consolidation did not bypass Poland's domestic market. In 2000 the WSE bought a strategic holding in CeTO SA, the company operating Poland's regulated off-Exchange market. This opens the door for the creation of a place in which small and medium-size companies can be listed, and will also promote trading in corporate and municipal bonds, as well as mortgage bonds. This report is being published in the year marking the WSE's tenth anniversary. We have therefore made a selection, by necessity a very limited one, of the most important developments on the market from 1991 to 2000. A short look at its history shows the enormous distance that the WSE has covered over these ten years - from the first session, during which the stocks in only five companies were traded just once a week, to more than 200 listed companies, sophisticated financial instruments, and daily sessions lasting several hours. Keeping in mind that the position and importance of any exchange is determined not by a single year, but by years and even decades of operation, I would like to wish investors, issuers and Exchange members much success in the marketplace in all of the coming years.  Wiesław Rozłucki President Warsaw, april 2001  |
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