The 45 percent drop in share prices on the Warsaw Stock Exchange (WSE) since February, and the increased volatility on the market has attracted 60,000 new individual investors, and re-aroused the interest of many dormant accounts, the bourse chairman Marek Dietl told PolandIN.
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While the value of stocks has not fully recovered, Mr Dietl says the volatility has encouraged many to invest in derivatives, which also enable investors to wager on the ups and downs of prices of shares and bonds.
At the end of last year, share trading seemed to have gone out of fashion. Volumes of everything but the most ascendant stocks were low and the individual traders had moved into real estate or alternative investments.
Along came coronavirus and that seems to have changed, and along with that, the fortunes of the Stock Exchange, which sees turnover and revenues significantly up on the same period last year.
Not all investors are delighted with the kind of value changes we have seen this year. Anyone with a long term strategy of investing will have seen their portfolio fall significantly in value. That is the case of the OFE Pension funds, which were due to be transformed into private retirement savings accounts this year. Mr Dietl admitted that the government had to put back this plan, because the portfolios had been depleted of some PLN 30 bn (EUR 6.6 bn) since January, about 25 percent.
The flip side is, however, that investors in the new PPK contributory pension scheme, which started up mid last year, will accrue benefit long term from the possibility that the fund portfolio managers have to buy up stocks cheap now, the WSE Chairman said.