CAN THE STOCK BOOM BE SUSTAINED?
Throughout 1985, the Vienna Borse vied with the Milan Borsa for the title of the world's fastest growing stock market. A moribund exchange for the last 18 years, the Vienna equity market boomed throughout 1985 with record turnover volumes and share prices. By the end of May, total volume traded for the preceding five months had already exceeded that for the whole of 1984. By the end of September, total trading volume had doubled to Asch7.6 billion ($38 million). The final figures have yet to be totalled, but turnover in 1985 is expected to exceed Asch10 billion.
Few of the 50 stocks traded on the exchange lost value. Three companies quadrupled prices, three others recorded increases of between 200 and 300%, eight companies doubled their prices and Montana, an investment holding company, increased its market capitalization 10 times. So deep and pent up has demand been that, on occasion, trading has faltered as demand outstripped available supply of shares. Despite four share issues in the year, the market remained bullish through 1985.
The big question on investors' lips is: can the boom be sustained through 1986?
"I think this year will be another positive period,' said Karl Pale, chairman of the Vienna Stock Exchange.