1. INVESTORS IN EXCHANGE TRADING – H1 2010 - summary of survey findings
GPW 2007 – NOWA JAKOŚĆ

2. Methodological Notes
Type of survey: questionnaire; the respondents quoted exact values
Survey participants: 27 national WSE members
Survey timing: July 2010
Data for: H1 2010
The activities of market maker and customer portfolio management were treated as activities of national institutional investors
The survey covered WSE session trading data

3. WSE MAIN LIST

4. Trading value (PLN mln)
Major Highlights 50
2600.0
In H equity trading reached almost PLN 200 billion. which accounted for almost 60% of trading in 2009
From the beginning of the year the rates of return for major stock exchange indices ranged from +1% (mWIG40) to -6% (WIG20)
In the primary market. 11 IPOs were carried out including two record-breaking in terms of value: PZU and TAURON attracted new investors to the stock exchange 45
2550.0 40
2500.0 35
2450.0 30
2400.0 25
2350.0
Trading value (PLN mln)
WIG20 at month end 20
2300.0 15
2250.0 10
2200.0 5
2150.0
2100.0
January
Feb.
March
April
May
June

5. Foreign Investors
Other 13% 47 % 43 % 41 %
Austria; 6 % 36 % 33 % 31 %
Czech
Republic; 8%
United
Kingdom; 60 %
France; 13 %
2005
2006
2007
2008
2009
2010H
Foreign investors accounted for the highest share in stock trading in the history of WSE surveys
In value terms foreign investors’ trading exceeded PLN 94 billion
UK brokers continue to lead in terms of the origin of foreign orders at the WSE
In H the runner-up position was held by the Czech brokers (at present French brokers)

6. Institutional Investors
Other 13% 39 %
Dealer; 5% 37 % 37 %
Investment
Companies 44% 34 %
Market
maker 17% 33 % 33 %
2005
2006
2007
2008
2009
2010H
Pension Funds 21%
The share of domestic financial institutions in stock trading fell to the level prevailing 4 years ago
In value terms institutional investors’ trading exceeded PLN 65 billion
Investment Companies held the dominant position among institutional investors as they attracted new investors and their assets exceeded PLN 100 billion once again
The runner-up position was recovered by the pension funds (a year ago 17%. now 21%)

7. Individual Investors
orders
transactions 74 % 76 % 73 % 68 % 35 % 63 % 30 % 27 % 50 % 69 % 70 % 26 % 65 % 60 % 20 % 18 % 49 % 29 %
2005
2006
2007
2008
2009
2010H
2005
2006
2007
2008
2009
2010H
Share of domestic individual investors in stock trading fell to 20%
Retail investors generated PLN 40 billion in trading i.e. the same level as in H1 2009
The share of transactions made by individual investors via Internet reached a record-high level of 70%

8. NEWCONNECT MARKET

9. Trading value (PLN mln)
Major Highlights
In H stock trading totalled PLN 1.3 billion. which was more than in the whole 2009
The NCIndex growth exceeded 15% since the beginning of the year. which is the highest rate of return of all stock exchange indices
In H the stocks of 32 companies debuted on NewConnect. At the end of June issuers were listed.
450 62
400 60
350
300 58
250
Trading value (PLN mln)
NCI at month end 56
200
150 54
100 52 50 50
January
Feb.
March
April
May
June

10. Foreign Investors 3 % 2 % 2 %
Czech
Republic 40% 1 %
Other 60%
2007
2008
2009
2010H
Foreign brokers are dominated by investors from other countries than those in the region. Western Europe and the United States of America.
Share of foreign investors in stock trading in the NewConnect market was down to 1%
Foreign investors trading in H was higher than in the whole 2009

11. Institutional Investors
Other 11%
Dealer 3 % 9 % 7 %
Other
Companies 35% 6 % 5%
Investment
Companies 22%
2007
2008
2009
2010H
Market maker 29%
Share of domestic institutions in stock trading in the NewConnect market fell to 7%
Institutional investors’ trading totalled PLN 90 million
The highest share in trading in the alternative market was held by non-financial enterprises.
In the previous edition of the survey the leader in this category were brokerage houses acting as market makers

12. Individual Investors 92 % 92 % 92 % 96 % 97 % 89 % 88 % 79 %
2007
2008
2009
2010H
2007
2008
2009
2010H
The share of domestic individuals in stock trading in the NewConnect market exceeded again 90%
Domestic retail investors generated PLN 1.2 billion in trading in H
Most of IPOs on the NewConnect market were carried out through private placements
In 2007 private placements accounted for 79%. whereas this year private placements accounted for 97% of offerings

13. DERIVATIVE INSTRUMENTS

14. Major Highlights
In H the trading volume of contracts and options totalled 8.2 million. which accounted for 59% of trading volume in 2009
At the same time new series of contracts for shares of new issuers. including PGE and PZU. were admitted to trading
The launch of short sales in mid 2010 may represent a growth opportunity for derivative instruments volumes
1800
250
1600
200
1400
1200
150
1000
Open Interest (no. of instruments)
Turnover Volume (tousand instruments)
800
100
600
400 50
200
January
Feb.
March
April
May
June

15. Foreign Investors – Futures
Czech
Republic 1%
Other 5%
France 9% 12 % 11 % 10 % 10 % 9 %
Austria 54 % 5 %
United
Kingdom 31 %
2005
2006
2007
2008
2009
2010H
Share of foreign investors in futures trading reached a record-high level in the history of WSE surveys and accounts for 12%
Futures trading volume executed by foreign investors totalled 950 thousand contracts
Austrian institutions generate the highest share of trading. similarly to 2009
The ranking in further positions did not change and they were occupied by brokers from UK and France

16. Institutional Investors – Futures
Other 10% 37 % 37 % 36 %
Dealer 6 % 34 % 25 % 18 %
Investment
Companies
17%
Market maker 67%
2005
2006
2007
2008
2009
2010H
Share of domestic financial institutions in futures trading was slightly down to 36%
Trading volume executed by institutional investors in H totalled 2.8 million contracts
In the category of institutions the lead in contract trading was held by market makers (67% vs. 61% last year)
Compared to last year the activity of investment companies declined (last year they accounted for 23%)

17. Individual Investors – Futures
orders
transactions 83 % 85 % 75 % 78 % 77 % 69 % 66 % 53 % 56 % 53 % 52 % 52 % 72 % 73 % 63 % 64 % 54 % 51 %
2005
2006
2007
2008
2009
2010H
2005
2006
2007
2008
2009
2010H
73% of orders in futures market are placed on the stock exchange through Internet accounts
The share of Internet transactions in retail trading rose to a record-high level of 85%
Share of individual investors remained at the 2009 level and amounted to 52%
In H the trading volume executed by retail investors accounted for 60% of 2009 volume

18. Foreign Investors - Options
United
Other 3%
Kingdom 1% 12 % 12 % 10 %
Austria 96% 4 % 3 % 1 %
2005
2006
2007
2008
2009
2010H
Share of foreign investors in options trading returned to the 2008 level and amounted to 10%
In H the trading volume executed by foreign investors was higher than in the overall last year and reached almost 30 thousand options
In the category of foreign brokers the options market is dominated by Austrian institutions similarly to the futures market

19. Institutional Investors - Options
Other 3%
Investment
Companies 4% 35 % 32 % 30 % 30 %
Market makers 26 %
27% 24 %
Banks 66 %
2005
2006
2007
2008
2009
2010H
Share of institutional investors in options trading rose to 32%
In H options trading volume executed by domestic institutions reached 102 thousand options
In the category of domestic institutions a predominant position in options trading belongs to market makers (also acting on the account of the bank)
They accounted for 93% of options trading volume

20. Individual Investors - Options
orders
transactions 75 % 71 % 86 % 85 % 86 % 65 % 58 % 58 % 73 % 53 % 67 % 62 % 87 % 79 % 69 % 69 % 69 % 59 %
2005
2006
2007
2008
2009
2010H
2005
2006
2007
2008
2009
2010H
Number of orders in options trading sent via Internet accounts fell from 87% to 69%
The share of Internet transactions in individual investors trading in the last 18 months stabilized at the level of 85%
Share of individual investors in options trading was down to 58% i.e. to the 2008 level
Individual investors generated trading volume ca. 181 thousand options

21. CATALYST BONDS MARKET

22. Issues Value (PLN mln. line graph) No. of Issues (bar graph)
Major Highlights
Since the beginning of the year we have observed a systematic growth in the number of issuers and value of corporate and local government bond issues in the Catalyst market
Along with the growing number of listed series the interest shown in the Catalyst market has been growing. which is confirmed by the growth of trading volume in value terms and number of transactions
Recently a major event was the first IPO of co-operative bank’s bonds in the Catalyst market 18 40 16 35 14 30 12 25 10
Issues Value (PLN mln. line graph)
No. of Issues (bar graph) 20 8 15 6 10 4 2 5
January
Feb.
March
April
May
June

23. SUMMING UP

24. Number of Internet accounts
Number of accounts
Number of accounts
Number of Internet accounts
Total
Active
589
1 314
420
352
1 099
293
997
822
877
880
412
187
115
192
219
239
255
166
2005
2006
2007
2008
2009
2010H
2005
2006
2007
2008
2009
2010H
First time ever the number of Internet accounts handled by brokerage houses exceeded 500 thousand.
Since 2005 the number of Internet accounts rose fourfold from 115 thousand to 589 thousand
Record high offerings of the State Treasury attracted new investors to the stock exchange : the number of investment accounts rose to a record-high level
The number of active accounts (at least one transaction in the surveyed period) accounts for 31%

25. Summing Up – Data In Percentage Terms
Investor
Instrument
2005
2006
2007
2008
2009
2010H
Foreign
stocks ML* 41 31 33 43 36 47
stocks NC* 3 2 1
contracts 5 9 10 11 12
options 4
Individual 26 35 30 18 27 20 92 89 77 66 56 53 52 75 71 58 65
Institutional 34 37 39 6 7 25 24 32
Key: *ML – Main List; *NC – NewConnect market

26. Summing Up – Data in Value Terms
Investor
Instrument
2005
2006
2007
2008
2009
2010H
Foreign
stocks ML*
stocks NC*
4.66
14.27
18.65
20.85
contracts
options
3 428
8 543
45 524
38 738
17 496
29 903
Individual
142.96
754.65
961.63
Institutional
7.77
53.73
99.12
90.28
61 636
86 594
99 046
Key: *ML – Main List; *NC – NewConnect market (in PLN millions)

27. More information: WSE Marketing Communications Department
Marcin Przeszłowski
Anna Szarek