Downturn at the Vienna Stock Exchange: ATX loses 1.20 percent

A visible retreat of investors characterized trading at the Vienna Stock Exchange at the end of the week. The ATX closed the trading day with a loss of 1.20 percent, standing at 3348.13 points, while no uniform trading trend was discernible at the major European stock exchanges. Investors on the Austrian floor were focused on the fresh business figures from market-dominant companies such as Erste Group, Andritz, and EVN. Both Erste Group and Andritz recorded share price declines of 4.5 percent each, while EVN shares bucked the trend with a gain of 1.5 percent. At Erste Group Bank, the favorable interest rate environment positively impacted operational performance and profits. An extraordinary net profit of nearly three billion euros was reported for the year 2023, a spectacular rise of 38.5 percent compared to the previous year. These profits are not to remain undivided: The Board of Directors recommends a distribution of 2.70 euros per share, a significant increase over the previous year's 1.90 euros. Analysts noted that the net profit for the fourth quarter slightly exceeded their expectations. Also noteworthy were the figures reported by Andritz, as the company concluded the year with record values in sales and profit. A sales increase of 15 percent to 8.7 billion euros and an operational profit increase of 14 percent to 742 million euros earned an "excellent" rating from Baader Bank analysts. However, order intake only earned a description as "unspectacular." The share price declines of both companies could possibly fall under the well-known phenomenon of "sell on good news," suggested a market commentator. In contrast, EVN had to accept declines in sales and group results for the first quarter of the fiscal year 2023/24. Due to milder temperatures, the demand for energy was noticeably below the long-term average, as presented by EVN. Nonetheless, analysts at Erste Group considered the results to be remarkably positive, expressing only slight disappointment over the sales figures. Meanwhile, in the technology sector, AT&S shares lost 2.4 percent in value. Kapsch TrafficCom recorded a decrease of 4.3 percent. Semperit shares showed a 6 percent loss, while Lenzing dropped by 2.5 percent. Telekom Austria also had to endure a decline of 2.7 percent.