Dec. 6 (Bloomberg) -- Stock markets in central and eastern Europe are likely to rise in the long term, as some companies have “done their homework” in recent years and will emerge stronger from the crisis, according to Heinrich Schaller, who heads the Austrian stock exchange.
“We see a positive trend in the long-term even though we’re in a phase now where markets may fall sharply, because we believe some companies are in a much better shape than three years ago and they have done their homework,” Schaller, the chief executive officer of Wiener Boerse AG, said at a conference in Budapest today.
Shares prices have fallen in the region as the global financial crisis and Europe’s debt woes have prompted investors to shun riskier assets. Wiener Boerse controls the Prague, Budapest and Ljubljana exchanges.
“A large part of liquidity is flowing into gold, at which I can only shake my head,” Schaller said. “Against all beliefs, gold doesn’t offer protection.”
Bullion is in the 11th year of a bull market and prices reached a record $1,921.15 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. Holdings in exchange-traded products backed by gold reached a record 2,356 tons on Nov. 30.
--Editors: Alan Purkiss, Chris Peterson
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