LISTED FIRMS
JANUARY 10-16, 2011
Warsaw Stock Exchange
Taking stock of the decade
Taking stock of 2010
Poland’s bourse had a strong 2010 and expects more good fortune this year The Warsaw Stock Exchange hit an important milestone at the close of 2010 when Europejskie Centrum Odszkodowaƒ (ECO), a provider of insurance claim recovery services, became its 400th concurrent listing. The P olish bourse has hosted a considerably higher number of listings over the years – 533 in total, as of December 31, 2010. But the natural attrition of delistings, M&A deals and bankruptcies kept the number of concurrent listings well below that. Attrition was not a major concern in 2010, though. Thirty-four companies joined the bourse, while 13 delisted. And ECO’s historic listing was quickly followed up by a 401st listing, that of Ukrainian collier Sadovaya Group, which also became the 27 th foreign firm trading on the WSE’s main floor.
A year of recovery Reaching the 400-company mark capped off a successful year of recovery for the WSE.
Total market capitalization rose by 11 percent y/y and was close to double the market cap figure reported at the end of 2008. The average value of trading per session was up 17 percent, while trade in futures and options were also up. Only bond trading was down in 2010, by 14 percent in terms of both total value of trading and average value per session. A number of high-profile events contributed to the WSE’s good fortunes last year, including the megadebuts of insurer PZU and utility Tauron, as well as the less voluminous but psychologically significant IPO of the bourse itself. Adding to the good PR were the launch of energy trading and the announcement of a new index illustrating which firms are best at paying out dividends. This index, the WIGdiv, was put into service last week. The WSE’s alternative market, NewConnect, was also a source of strength for Warsaw. It saw a respectable 86 debuts in 2010, meaning its total constituency as of December 31 was 185 firms,
Debuts and listings on the Warsaw Stock Exchange as of Dec 31 of each year, 2000-2010 Debuts
up 73 percent y/y. Market cap doubled last year and the value of trading tripled. At the end of December, Eko Eksport, a producer of microspheres, became the 10th firm to move from NewConnect to the main market.
Perceptions of growth The Warsaw Stock Exchange has already welcomed its first debutant of the new year, packaging producer BSC Drukarnia Opakowaƒ, and others are in the pipeline. This T uesday the bourse is hosting an “IPO Day,” during which three soon-to-debut firms will introduce themselves to investors. There is some concern that, in the short term at least, the WSE may face some difficulties. Analysts polled by Parkiet have predicted that stocks will fall in the early part of this year, bouncing back in the second quarter. But there’s little sign of worry among representatives of the bourse. Buoyed by the successes of last year, the WSE is bullish about its prospects for 2011. Speaking with P olish Radio about the one-hour lengthening of trading hours
Eurocash, P oland’s largest FMCG retailer by market share, will buy elements of the distribution arm of its smaller competitor Emperia Holdings. The deal, reached on December 21, was made public on January 4. It comprises shares in 17 companies in Emperia’s distribution group, Tradis, and has been valued at z∏.926 million. “We are delighted that we managed to reach an agreement and defended ourselves against a hostile takeover,” Artur Kawa, CEO of Emperia Holding, said in a press
release. WSE-listed Eurocash’s earlier bids to merge with its rival via a share swap were repeatedly rebuffed, with Emperia arguing that the deal significantly undervalued the company. Eurocash offers valued Emperia at around z∏.1.3 billion, while Mr Kawa said his company was worth between z∏.2.1 and 2.3 billion. The current deal was described by Emperia’s CEO as beneficial to all parties. “We are confident that the conditions of the agreements are very beneficial to the
shareholders of our company. … Inclusion of the T radis group to Eurocash is beneficial for all parties, including Emperia and definitely Tradis, its employees and customers,” said Mr Kawa. Further consolidation of the market might include WSE-listed Bomi, one of the largest delicatessen chains in Poland. Emperia recently announced that it was interested in a merger in H1 of 2011, and the company has not denied that Bomi is indeed the targeted Alice Trudelle rival.
COURTESY OF EUROCASH
Eurocash buys distribution assets from Emperia
The deal that was finally struck by Eurocash and Emperia was worth z∏.926 million
www.wbj.pl
9
WSE trading sessions extended
Listings
90 80 70 60 50 40 30 20 10 0
450 400 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Regaining ground WSE market capitalization (in z∏. billion) as of Dec 31 of each year, 2000-2010 1,200
The first extended session on the WSE was no different than the previous, shorter ones. The WSE’s daily turnover was around z∏.500 million. The market did not react to good news from the US, where indexes soared after stock exchanges started the day. Experts say the effects of the extended hours can be evaluated no sooner than in a few weeks or even months.
First IPO of 2011 on WSE a success
1,000 800 600 400 200 0 2000
2001 2002 2003 2004 2005 2006 2007 2008 2009
2010
Source: Warsaw Stock Exchange
which came into effect this year, WSE president Ludwik Sobolewski expressed confidence that it would be for the long-term good. “Without a doubt the change will have a positive
influence on the perception of the Polish capital market, on interest in the various financial instruments on offer, and not only stocks,” Mr Sobolewski said. E Blake Berry
The WSE’s main market saw its first debut of the year last Tuesday. The débutante, Polish packaging producer BSC Drukarnia Opakowaƒ, also became the 402 nd company trading on the Polish bourse. On offer were three million shares at a base price of z∏.17.50, valuing the IPO at z∏.52.5 million. The stock rose 1.14% to 17.70 at the open of trade. ●