Exchange to commence trading in foreign shares
The Prague Stock Exchange, in cooperation with its members, is to commence trading in selected foreign titles on 22 May. The aim is to offer local investors the opportunity to trade significant foreign securities on the domestic market in local currency and, last but not least, to extend the offer of titles being traded with new, attractive alternatives.
The Prague Stock Exchange, in cooperation with its members WOOD & Company Financial Services, a.s., Patria Finance, a.s. and Raiffeisen Centrobank AG, is to launch a total of 32 new foreign blue chip titles (for a list of issues see the separate annex to the press release). The issues will be traded on the unregulated Free Market, with the liquidity being supported by the market makers. From the very beginning of trading, the market makers will always be the Exchange member requesting the admission of the title and the stock exchange. The titles will be traded in Czech crowns, in accordance with the standard rules within the Xetra system. Dividends will be paid out by the Central Securities Depository.
“It is hoped that dual listings of selected foreign titles will offer an attractive diversification and become an interesting investment opportunity for domestic investors. With there being a market maker supporting the liquidity of each title, this should be a full-fledged alternative to trading these issues on their parent market,” says Petr Koblic, Chief Executive Officer of the Prague Stock Exchange.
The issues to be traded have been selected by the Exchange members on the basis of their clients' preferences. The primary markets of the titles to be launched include Germany, Finland, Sweden, Austria, France, Italy, Poland and Hungary. Shares are not the only items to be traded; also included in the selection are three Exchange Traded Funds (ETFs). This product is very popular among investors, as the investor can participate in the development of the entire basket of underlying assets through a single title.
“Local investors will be able to invest in more than 30 foreign companies from Central and Western Europe in one place and in their home currency. Wider diversification of the portfolio will certainly be a benefit. It will be possible as a result of investments into exchange-traded funds (ETF), the underlying assets of which will be the most important foreign indices," says Josef Kohout, Head of Trading Prague, WOOD & Company.
“We have prepared well-known titles, such as MOL, Heineken, Nestlé, Nokia and Volvo, for the dual listing. We believe these titles are sufficiently appealing to attract new Czech investors and clients preferring investments denominated in the strengthening Czech crown. It is our wish that dual issues on the Czech Free Market will become a favourite part of the portfolio of most of our clients," says Tomáš Jaroš, CEO and Chair of the Board of Directors of Patria Finance, a.s., the largest domestic retail trader in securities.
"Raiffeisen Centrobank is one of the leading market makers in Central and Eastern Europe. Therefore, it is a commonplace that we have decided to support the possibility of bringing the leading Austrian and Central European titles to Czech investors, who make investments mostly in the Czech crown, through a dual listing on the PSE. Given that most of our selected companies will be well known to Czech investors from the media or everyday life, we believe there will be increasing interest in this market segment,” says Jaroslav Kysela, CEE Regional Manager, Raiffeisen Centrobank AG.
|Deutsche Bank AG||DE||DE0005140008||Wood&Co.|
|Royal Dutch Shell PLC||NL||GB00B03MLX29||Wood&Co.|
|iShares Core DAX UCITS ETF DE||Wiener Börse||DE0005933931||Wood&Co.|
|iShares Core S&P 500 UCITS ETF||London Stock Exchange||IE00B5BMR087||Wood&Co.|
|Xtrackers MSCI China UCITS ETF||London Stock Exchange||LU0514695690||Wood&Co.|
|OTP Bank PLC||HU||HU0000061726||Patria Finance|
|PKN Orlen SA||PL||PLPKN0000018||Patria Finance|
|NESTLE SA||SUI||CH0038863350||Patria Finance|
|HEINEKEN NV||NL||NL0000009165||Patria Finance|
|UNILEVER NV||NL||GB00B10RZP78||Patria Finance|
|SKANSKA AB||SWE||SE0000113250||Patria Finance|
|VOLVO AB||SWE||SE0000115446||Patria Finance|
|NOKIA OYJ||FI||FI0009000681||Patria Finance|
|BORUSSIA DORTMUND||DE||DE0005493092||Patria Finance|
|JUVENTUS FOOTBALL CLUB SPA||IT||IT0000336518||Patria Finance|
|PKN Orlen SA||PL||PLPKN0000018||RCB|
|PKO Bank Polski||PL||PLPKO0000016||RCB|
|KGHM Polska Miedz||PL|
|UNIQA INSURANCE GROUP AG||AT||AT0000821103||RCB|