Warsaw Stock Exchange (GPW)

The Warsaw stock exchange first opened over 200 years ago, on May 12th 1817. At this time, it focused on bonds, as well as other debt instruments. Equities were not added until the close of the 20th century. Prior to WW2, there were seven stock exchanges operating in Poland, but from 1939 Poland was occupied by German and then Russian forces and the stock exchange ceased activity.

The Warsaw Stock Exchange as we know it today began trading on April 16th, 1991. This marked the end of the communist era in Poland. The state Treasury opened the WSE, and the first day of trading was a rather symbolic one, considering it took place on the top floor of the former headquarters for the Communist Party. At the time, only five companies were traded, with a turnover of $2,000.

In February of 2009, the WSE said that four international exchanges were invited to buy the bourse – NYSE Euronext, Nasdaq OMX, Deutsche Boerse, and the London Stock Exchange. Initially, all four exchanges responded to the invitation. However, it fell through in the final weeks of 2009, with London withdrawing before the process was complete and Frankfurt being the only exchange to submit a bid.

Because of this, an initial public offering (IPO) was organised by the Treasury for the WSE. This occurred on November 9th, 2010. The Polish government lowered its stake from 98 percent of the bourse to 35 per cent after the exchange had agreed on the purchase of a new trading platform in June of 2010 from NYSE Euronext. In April 2013, the exchange switched over to this platform. The IPO was significant, as it marked the first trading debut by a bourse operator in central Europe.

The WIG – Warsaw Stock Exchange General Index – is the major stock market index responsible for tracking how all domestic companies perform on the WSE. it is an income-based, free-float, total return index, which includes pre-emptive subscription rights and dividends. There are 14 other stock market indices on the WSE, including the sWIG80, mWIG40, WIG30, and WIG20.