Newex Lifts Eastern Europe

Sunday Business (London, England), November 5, 2000 | Go to article overview

Newex Lifts Eastern Europe


T

HE current volatility of markets, and the apparent unwillingness of either private or professional investors to take big directional bets in them, might make some believe that the last thing investors are looking for at present is an opportunity in an asset class traditionally perceived as high-risk.

How much demand is there from western European and US investors for emerging market equities? Certainly, there is demand from the other direction, of eastern European companies seeking to raise capital from western investors.

Soon, we should be able to gauge the appetite for emerging Europe stocks. Last week the first trades were executed on Newex, an exchange created by Deutsche Bsrse and Wiener Bsrse to give European investors access to central and eastern European and vice versa.

Volker Potthoff, a member of the Newex supervisory board, said the new exchange is a synergy of interest and abilities. "We have created a new market together with one platform and regulatory structure. Why now? Simply, eastern Europe is getting closer to the European Union."

Newex commenced trading on Friday, with about 90 stocks listed from nine countries and with a total market value of about e45bn ([pound]26.5bn). Most of these are in a basic segment, but there are also two higher-tier divisions that have more stringent listing criteria. NX.plus is one of the "quality" segments and includes LukOil, Sibneft and Tatneft from Russia, Hungarian food processing company Globus and Austrian internet and telecoms solution provider S&T. This segment of eight companies is worth e16bn.

These companies are seeking exposure to investors who they hope will provide capital, as well as liquidity and price support for the stock, by making the shares in the companies easier to trade. Newex is based on the Xetra electronic architecture developed by Deutsche Bsrse and the exchange has signed up 20 market participants through which investors will be able to trade shares. These include WestLB, Greenwich Securities, Tullet & Tokio Liberty and Dresdner Bank.

Erich Obersteiner, a board member of Newex as well as Wiener Bsrse, believes there are compelling reasons for western investors to look at central and eastern European companies.

"We're convinced that this region will have very high growth rates and be a good area for developing companies," said Obersteiner. As a region, central and eastern Europe "will grow in the next 10 to 15 years at twice the growth rate of euroland".

The Communist "experiment", as he called it, failed and as a consequence a great deal of economic potential has gone unfulfilled. This view is borne out by a recent World Bank study on prospects for stock markets in "transition" economies, which forecast that Hungary will make the greatest advance, in terms of market activity, of any central or eastern European market. Projected market turnover will be worth 102% of gross domestic product by 2005, compared with 34% today.

Obersteiner says that current funding to meet the expansion required to service these markets will not be found from domestic sources.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Newex Lifts Eastern Europe
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.