The Austrian stock market experienced a sharp drop in prices this week. The Vienna-based ATX benchmark index lost 4.6 percent in a single day and closed at 6,263.95 points. This more than wiped out the previous day’s gains (+1.75 percent).
The Austrian stock market experienced a sharp drop in prices on Thursday. / Picture: © Wiener Börse AG / VSE Vienna Stock Exchange
The Vienna-based benchmark index, the ATX, lost 4.6 percent in a single day and closed at 6,263.95 points. This more than wiped out the previous day’s gains of 1.75 percent. A negative international environment on Europe’s leading stock exchanges, as well as disappointing quarterly results from U.S. technology companies such as Tesla, IBM, and Meta, weighed heavily on global market sentiment.
Macroeconomic Environment and Sectors in a Downward Spiral
In addition to the disappointments in the tech sector, analysts at Helaba point to a persistently challenging environment for the financial markets. With no positive outlook in sight for the wars in Ukraine and Iran, energy prices remain high, fueling concerns about inflation and the economy.
The downward trend in the technology sector had a full impact on the domestic market. The Styrian printed circuit board manufacturer AT&S came under heavy pressure and posted a double-digit decline of over 18 percent, after its shares had gained more than seven percent the previous day. Despite this slump, the stock continues to show a remarkable gain of nearly 340 percent since the beginning of the year.
Bank stocks, which carry significant weight in the ATX, also suffered substantial losses. Erste Group shares fell by a whopping 6.2 percent, while Raiffeisen Bank International lost 5.5 percent and BAWAG dropped 5.3 percent. Other major stocks came under similarly heavy pressure, including FACC, down 6.2 percent; voestalpine and SBO, each down 4.3 percent; Strabag, down 4.0 percent; and RHI, down 3.8 percent.
A Silver Lining Among Second-Tier Stocks: Steyr Motors Reports Solid Results
Among second-tier stocks, Steyr Motors reported its latest financial results. The tank engine manufacturer delivered third-quarter operating performance that slightly exceeded internal projections. Consolidated revenue climbed by a good 11 percent year-over-year to 12.5 million euros, while adjusted EBIT improved from 0.9 million euros to 1.4 million euros. Additional excitement is being generated by the planned takeover bid from U.S. drone developer Red Cat Holdings, which aims to acquire Steyr Motors for approximately 205 million euros, or 39 euros per share. The stock fell only slightly, by 0.6 percent, during the trading day.