The Warsaw Stock Exchange said Wednesday that it has become the regional leader in Central and Eastern Europe, surpassing the Vienna bourse in at least two categories, mainly thanks to successful initial public offerings and the renewed trading appetite of individual investors.

The WSE took the top slot in the region in terms of market capitalization of the domestic companies traded, as well as by trading volume in the January-July 2009 time frame.

In the period, total trading volume at WSE was at EUR20.3 billion, versus EUR18.5 million at the Vienna Stock Exchange, it said. In the corresponding period of 2008, the Austrian stock market's lead over WSE had been firm, with the trading volume at EUR49 billion, compared with EUR30 billion in Warsaw.

The total market capitalization of companies traded at the WSE was EUR81 billion, 20% higher than that in Vienna.

The capitalization of companies listed in Warsaw grew 23% in July versus June, while in Vienna it grew 5.5%.

WSE CEO Ludwik Sobolewski said the good results can be attributed to successful IPOs and the return of individual investors to the market after last year's slump.

"The market for IPOs has been good," he said. "Thanks to new offerings, investors continue to be interested in the stock market. Individual investors have returned to the market after the downturn at the end of 2008."

Six IPOs have been launched on the WSE so far this year, with the largest being coalmine LW Bogdanka (LWB.WA), floated by the Treasury in an offer worth PLN528 million ($179 million).

Sobolewski added that he expects 20-30 new listings this year, including those by a number of large-cap, heavy-industry companies that the government plans to privatize later in the year, which should further raise WSE's profile.

The country has survived the global economic crisis better than others in the region, with some economists predicting that its economy will be the only one in the European Union to expand this year. Still, the government is hampered by a growing budget deficit, projected to rise this year to $9.05 billion.

The exchange, which has about 375 companies listed, is included in the government's privatization program and is expected to be sold to an investor by the end of this year to help cut the budget gap.

Poland chose potential bidders for the WSE in July, picking Deutsche Boerse (DB1.XE), the London Stock Exchange Group PLC (LSE.LN), Nasdaq OMX Group Inc. (NDAQ) and NYSE Euronext (NYX) to perform due diligence on WSE.

The Treasury wants to sell a stake of 51% to 73.82% in the exchange, which has played a large role in Poland's privatizations since its formation in 1991.

Using a price-to-earnings ratio of 20, the multiple used for the sale of Prague bourse, WSE is valued at about 3 billion zlotys (about $1 billion), Deputy Treasury Minister Joanna Schmid has said.

Representatives of the Vienna exchange weren't immediately reachable for comment.

Company Web site: http://www.wse.com.pl.

-By Marcin Sobczyk, Dow Jones Newswires; +4822 447-2432; marcin.sobczyk@dowjones.com