For the international stock markets 2006 was a year of consistent success. All the major European stock exchanges recorded two-figure growth rates, with Madrid topping the table at 30%. Germany‘s DAX also performed well, however, with a price gain of 22%. The FTSE 100 index of leading companies in London hits its highest level since early 2001, at 6,260 points. In the USA the Dow Jones broke record after record and posted overall growth of 16%.
The situation in Austria was similar: after record years in 2004 and 2005, the Vienna Stock Exchange again reported an extremely positive pattern of business. A series of flotations and capital increases generated a capital surge of € 11.87 bn – representing a new record following
€ 6.6 bn in 2005. The market capitalisation rose by some 36% to a historic high of € 145.8 bn. The monthly trading figures also proved to be particularly dynamic. They had risen by 74% by the end of November 2006 and are currently at around € 10.6 bn. Although unable to match the previous years‘ performance, the ATX grew by 21.7% and occupies an excellent position internationally. The main motor of this trend is the commitment and progress of issuing companies with activities in Eastern Europe. This category embraces 95% of all enterprises represented in the ATX.
The EPRA (NAREIT Europe) property index climbed from 2,069.16 to 3,000.23 points last year and thus continued – as it has done since 2002 – on its upward trajectory with an increase of 45%. The advance was driven by the healthy economic climate, the general pattern of interest rates and the upturn in the job market, in particular the unmistakable trend towards a service society. Furthermore, property companies performed exceptionally strongly and reported rising rents and lower vacancy rates. The principal factor was the increase in the value of the properties, which was driven by both yield compression and rising rental income per square metre in Eastern and South East Europe.
This pattern was confirmed in Austria as well. Among domestic property companies there was a downright race to secure investors‘ favour. A total of ten capital increases and IPOs (including surplus allocation option) took place in the past year, bringing the issuing companies some € 5.25 bn.
The IATX property index advanced as a result by 23.57% in 2006. Overall, the market capitalisation of all domestic property stocks totalled around € 30.03 bn, of which € 21.18 bn relate to property shares,
€ 8.24 bn to property funds and the remaining € 600.8 m to profit-sharing certificates. On aggregate, property stocks accounted for 19.74% of the total market capitalisation of the Vienna Stock Exchange, and property shares accounted for 13.92% of the total trading volume.