This year, next year at the latest, we will be – in terms of the number of gaming companies – the largest stock exchange in the world. We will overtake Tokyo, which has been the leader so far, announces the president of the Warsaw Stock Exchange, Marek Dietl.
– The investment opportunities provided by the pandemic, i.e. very large sell-offs in March, attracted individual investors, who today account for 22 percent of the stock market. turnover. A year ago, at this time, it was 12 percent. They actually entered the market at the right moment: since March, the WIG has grown 70%. – says Marek Dietl, president of the Warsaw Stock Exchange, in an interview with Interia. He also adds that, apart from shares, also ETFs (synthetic instruments including WIG20 and mWIG40 shares) and ETP (instruments structured for assets that are not directly quoted like crude oil) are popular.
Holding money in a bank involves the risk of inflation and currently low interest rates, while relatively high prices on the real estate market are not conducive to investing in this segment. Therefore, the choice may be the capital market. – Investors collectively opened 60,000 jobs in the first pandemic period. new accounts. There has never been such an increase in history. In terms of turnover, the increases on the Warsaw Stock Exchange are third in Europe, Dietl notes. However, the president of the stock exchange points out that every investor should remember about the risk of investing in stocks or structured instruments.
How will the WIG20 index change in the coming years, taking into account the planned mergers and acquisitions? – It seems to me that 30-40 percent. companies will be listed in WIG20. It is related to mergers and acquisitions. On the investment map of the world, especially industry investors, only large entities can compete for money, so it is natural that we are consolidating the oil & gas sector in one entity in Poland. It will gain much greater opportunities to obtain cheap financing on global financial markets. But also technology companies from the ICT sector and widely understood information technology must appear in WIG20 sooner or later. 6-8 companies today I would bet will be different or changed in the index during the year – says Dietl.
The WSE is also looking for synergies with entities such as VC and PE funds. – Stock markets have changed all over the world. Poland is one of the few that primarily serves companies to raise capital. Stock exchanges are places of exits, mainly for VC and PE funds. In the US, exits through the stock exchange account for less than 20 percent of the portfolio of VC funds, but they decide by 70 percent. return on investment. It is happening in Poland: the first trailer was the telecommunications company Play. More and more companies are now ready to exit the fund. Due to the fact that we are a developed market, we are becoming a very attractive place to exit from the investment – explains Dietl.
– We are counting on extensive cooperation with the VC ecosystem, which is well developed in Poland. Last year, there was PLN 1.2 billion of obtained financing and more and more companies ready to exit. 28 companies from the gaming sector alone are currently knocking at the door of the stock exchange. This year, at the latest next year, we will be the world’s largest stock exchange in terms of the number of gaming companies. We will overtake Tokyo, which has been the leader so far, announces the president of the WSE.
The stock exchange is also changing the approach to “maintained” statistics in the area of the number of listed entities. – Fighting for these durable companies, which are a bit ghost companies, is not something that builds the future and in the long term erodes confidence in the market. Better, less, but better – says Dietl and adds that many companies benefited from the fact that there was a fashion, OFE, high valuations, but mentally they did not move to the stage to be a good public company.
– I would prefer to have half as many companies, but all of them with reasonable liquidity, small spreads that care about every, even the smallest investor, than hundreds or thousands of companies with very weak stock-exchange DNA – assesses the president of the Warsaw Stock Exchange. It is not, however, that the stock exchange is actively trying to clean up the trading floor. However, there will be no indulgence.
When asked about acquisition opportunities, Dietl says that “there is no other entity like the Tel Aviv stock exchange” (in 2018 the WSE planned to buy a stake in the Israeli stock exchange – ed.). – It was the most interesting investment opportunity. We are counting on cooperation, we have signed a letter of intent and I am convinced that it will take place, although probably not in terms of capital – he estimates
Today, the WSE looks at the Three Seas region. – In this area, we see a great potential for cooperation and, over time, maybe capital mergers, although we should note that most of these exchanges are at the first stage of capital market development. The Polish stock exchange – I will risk such a statement – if it were not a State Treasury company, with high probability today – it would already be part of Euronext or Deutsche Börse, i.e. a peripheral stock exchange within large groups. And even if it had survived on its own, it would have been a much smaller entity. The role of the state in the jump from an unclassified country to a developed market, and let me remind you that it happened in Poland twice as fast as in South Korea. (they are 55, we are 27), it was possible thanks to close cooperation with the state. Rather, we want to moderate the discussion of stock exchanges, support them in their development, and over time, perhaps we will unite in capital, explains the president of the WSE in an interview with Interia.