VIG shares following an upward trend
Nothing scares investors more than uncertainty. Although VIG shares also suffered the effects of uncertainty, they resumed their significant upward trend at the end of 2016.
Many market participants were confronted by a number of unexpected developments during the 2016 stock market year. The unexpected outcome of the Brexit vote, the ongoing refugee crisis and economic concerns about unclear data from China were the main reasons for political and macroeconomic uncertainty. These factors already had a correspondingly negative effect on stock markets in the first months of the year. The price of shares of Vienna Insurance Group ran parallel to the ATX index (Austrian Trade Index) of the Vienna Stock Exchange, similar to international markets and trends.
However, publication of the 2015 annual result and announcement of a year-on-year reduction in the dividend to EUR 0.60 resulted in a considerable drop in the middle of March. After the unsettling outcome of the UK vote to leave the European Union, shares of Vienna Insurance Group finally reached their low for the year of EUR 16.095 on 5 July 2016.
An upward movement began in the second half of the year thanks to good economic data, particularly in the Central and Eastern European region. After a period of volatile sideways movement, the shares of the Vienna Insurance Group – similar to the ATX and Euro Stoxx Insurance Index – increasingly picked up speed to reach a year-end price of EUR 21.300, representing a remarkable increase of 32.3%. The high for the year of EUR 24.790 achieved on 4 January 2016 remained out of reach, however, and the 2016 annual performance of minus 15.78% was disappointing as a result. The increase of around 10% in trading volume compared to the previous year is, however, worthy of note.
VIG shares continue their recovery in 2017
Vienna Insurance Group shares recorded an excellent start to the year in 2017 with a sustained increase above the EUR 22.000 mark and a number of closing prices considerably higher than EUR 23.000 at the middle of February and the beginning of March 2017.
The uninterrupted upward trend since the end of 2016 is nevertheless a clear indicator that investors are regaining their confidence in Vienna Insurance Group’s performance, and the Group’s stable foundation and clear strategic course are gaining investors’ attention once again.