Published: September 29, 2011
“Our countries have almost no exposure whatsoever to Greece – we’re going to be pretty safe,” says the CEE Stock Exchange Group’s Michael Buhl.
Stock markets in Central and Eastern Europe could benefit from increased investor appetite in the aftermath of Greece being declared bankrupt, says the boss of the region’s largest stock exchange group.
Michael Buhl, chief executive of the CEE Stock Exchange Group, which comprises the exchanges in Budapest, Ljubljana, Prague and Vienna, tells EMEA Finance that after the difficult summer months, markets are “somewhere near the bottom”. He expects a further dip, however, in the event of Greece declaring bankruptcy, which he believes is likely to happen before the end of the year.
“All the signs we have from politicians are pointing to a realisation of this, and they are now preparing the public to swallow it,” he adds. “This will cost money for some countries in recapitalising some of their banks.”
But Buhl is confident about prospects for the economies and banking systems in the countries the CEE Stock Exchange Group operates in, and therefore the exchanges it runs, saying that he feels “positive” about the group’s 2012 outlook.
“Our countries have almost no exposure whatsoever to Greece, and this is why I think we’re going to be pretty safe,” he says. “In general there will be a shock, although I think some of that shock is already priced in today. So there might be a wave of selling in the beginning but then people will reorient themselves. [Greek default] might even have a positive impact – [investors] cannot stay sidelined for too long, so they’ll look into the best bets, the safer havens.”