- Foreign investors generated 49% of trading in equities on the WSE Main Market (+2 percentage points YoY), institutional investors 38% (no change YoY), and retail investors 13% (-2 percentage points YoY).
- Retail investors remained in the lead on NewConnect with a share of 70% of trading (+1 percentage point YoY). The share of institutional investors was noticeable at 23% (-1 percentage point YoY) while the share of foreign investors was 7% (no change YoY).
- The share of domestic institutions in option trading grew for another consecutive year, which suggests professionalisation of trade in this WSE segment.
WSE Main Market
Foreign investors generated the biggest part of trading in equities on the Main Market in 2014, similar to the previous years. They contributed 49% of equities trading in 2014. The share of foreign investors in trading increased by 2 percentage points in H1 2014 to 49%.
Domestic financial institutions generated 38% of trading in 2014, the same proportion as in 2013. Investment funds were the leading group of domestic institutions in H2 2014 (35%), followed by market makers (28%) and pension funds (18%).
The share of retail investors was 13% in 2014. Their share in trading on the Main Market in equities decreased to 13% in H1 2014 in line with a years-long downtrend in the share of retail investors.
Investor structure on the Main Market in equities
Source: WSE survey of investment firms, estimates
NewConnect
On NewConnect, retail investors remained in the lead and generated 70% of trading in 2014. Foreign investors contributed 7% of trading in the period. The share of domestic institutions on the market decreased moderately as they generated 23% of trading in 2014 (1 percentage point more in 2013). Similar to the Main Market, investment funds were the leading group of domestic institutions in 2014 and accounted for 41% of trading in equities in H2 2014. Pension funds largely reduced their investment on the market and generated 4% of the total trade of institutions (15% in H1 2014).
Investor structure on NewConnect
Source: WSE survey of investment firms, estimates
Derivatives Market
Domestic retail investors were in the lead in 2014 also on the derivatives market. Their share in trading on the futures market was 46% (4% percentage points down from 50% in 2013) and 47% on the option market, an increase of 10 percentage points year on year. The share of domestic institutions and foreign investors in trading in futures was 37% and 8%, respectively. Foreign investors generated 8% of option trading in the period while the share of domestic institutions was 45%.
Investor structure on the futures market
Source: WSE survey of investment firms, estimates
Investor structure on the option market
Source: WSE survey of investment firms, estimates
The detailed results of the survey on the share of investors in trade in financial instruments are published on the WSE website.
The Exchange conducted a survey of the share of different investor groups (foreign investors, domestic institutional investors, domestic retail investors) in trading in financial instruments on the market in H2 2014. According to the applied methodology,* the share of each investor group is based on the results of a survey of domestic brokerage houses while annual figures are based on semi-annual numbers.
* The survey covered 30 domestic WSE members who completed questionnaires distributed by WSE. The respondents provided specific figures. The structure of foreign clients of Exchange Members was estimated using a modified method. The activity of market makers and management of clients’ portfolios were included in the category of domestic institutional investors. The survey covered the WSE Electronic Order Book.
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Warsaw Stock Exchange is the biggest securities exchange in Central and Eastern Europe. WSE organises trading on one of the most dynamically growing capital markets in Europe. WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. WSE is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, WSE is a public company listed on Warsaw Stock Exchange. For more information visit http://www.gpw.pl.