Market report - December 2005

London Stock Exchange Plc
11 January 2006


News Release

11 January 2006

MR54-12.05


            33 PER CENT INCREASE IN VALUE TRADED ON SETS IN DECEMBER

                 • IPOs raise a total of £16.2 billion in 2005


December 2005 was a very strong month for trading on SETS, the London Stock
Exchange's electronic order book, with a substantial year-on-year increase in
the value traded.  The average daily value traded on SETS during the month
increased 33 per cent on December 2004 to £4.1 billion.  December was the third
month in a row in which the average daily value traded on SETS grew faster than
the average daily number of trades, which was up 24 per cent on December last
year to 207,860.


SETSmm performed particularly well with the average daily number of trades up
128 per cent on December 2004 to 36,268, and the average daily value traded up
91 per cent to £315.5 million.  There were 725,350 order book trades on SETSmm
during the month, with a total value traded of £6.3 billion.


The total number of equity trades across the Exchange's markets during December
was 6.6 million, up 16 per cent on the same month last year, while the total
value traded increased 16 per cent on December 2004 to £443.8 billion.  The
total number of trades during the course of 2005 was a record 81.2 million, up
22 per cent on 2004; the total value traded was up 10 per cent on last year to
£5.2 trillion.


ETFs rounded off a year of strong growth with the average daily number of trades
during December up 108 per cent on the same month last year.  The average daily
value traded increased by 132 per cent to £47.8 million, reflecting a
substantial increase in the number of ETFs available on the Exchange during the
last three months of 2005.


The primary market continued to be active in December with 13 IPOs on the Main
Market during the month, raising £1.8 billion between them.  This included two
IPOs from international companies, Telecom Egypt and Novolipetsk Steel.  There
were 48 IPOs on AIM in December, raising £1.8 billion between them - the largest
amount of money raised on AIM in a single month, and the second highest number
of IPOs in a single month.


2005 was the strongest year for IPOs on the London Stock Exchange since 2000,
with a total of 421 IPOs during the course of the year.  Of these, 84 were on
the Main Market, raising £10.5 billion between them, 335 were on AIM, raising
£5.6 billion between them and two were Global Depositary Receipts issued on the
Professional Securities Market for wholesale securities.


There were 20 business days in December 2005, one fewer than in 2004.


                                    - ends -


For further information, please contact:

Catherine Mattison                           Press Office   [phone]

[e-mail]



Notes to editors:


•          About the London Stock Exchange


The London Stock Exchange is the world's premier international equity exchange
and a leading provider of services that facilitate the raising of capital and
the trading of shares.


The London Stock Exchange is the most international equities exchange by trading
in the world and Europe's largest pool of liquidity.  By the end of 2005, the
market capitalisation of UK and international companies on the London Stock
Exchange's markets amounted to £4.1 trillion, with £5.2 trillion of equity
business transacted over the year.


The London Stock Exchange is a Recognised Investment Exchange (RIE) under the
Financial Services and Markets Act 2000 and is supervised by the Financial
Services Authority.


Companies considering flotation have a choice of markets:


AIM

AIM is the London Stock Exchange's international market specifically designed
for smaller, growing companies, combining the benefits of a public flotation
with appropriate levels of regulation.


Main Market

The London Stock Exchange's Main Market for established companies seeking
international recognition is one of the world's best known, longest-established
and most liquid markets.  It is home to some of the world's largest and most
successful companies, giving them access to one of the deepest pools of capital
in the world.


Professional Securities Market

The Professional Securities Market was established in July 2005, to coincide
with the introduction of the FSA's new Listing Rules.  PSM provides a solution
for those issuers seeking to list securities in London without having to
re-state their financial information to IFRS or follow the additional
requirements of an offering to retail investors.  Debt securities or depository
receipts of any denomination may be listed on PSM on production of a prospectus
aimed at a wholesale or professional audience.


•     IPO


An IPO or Initial Public Offering is when a new company joins one of our markets
and raises capital by issuing shares.  This excludes transfers and introductions
(when companies join the market without raising money).



•        Indices

Indices are calculated and managed by FTSE Group, a world-leader in the
creation and management of global equity indices. The FTSE Group is jointly
owned by the London Stock Exchange and the Financial Times, but operates as a
wholly autonomous company.


For information about the company or any FTSE indices, please contact
[e-mail]




•        SETS - the electronic order book


It is over seven years since the launch of SETS and the service continues to go
from strength to strength. Overall, the market is benefiting from tighter
spreads and greater liquidity. Usage of SETS continues to grow, as shown by
recent record increases in the number of orders entered, the number of firms
using the order book and order book share of business.




•      SETSmm



SETSmm is the Exchange's successful trading service for FTSE 250 and other
leading non order book securities.  By combining the best features of the
existing SETS and SEAQ trading services, SETSmm appeals to market users who want
to trade electronically, as well as those customers who use the market making
system.



•      Retail Trading Figures



Retail trading figures are available from our website at -

www.londonstockexchange.com/en-gb/products/membershiptrading/retailtradestat

Figures are available from November 2002 to date.



LONDON STOCK EXCHANGE - MONTHLY FACTSHEET FIGURES


2005


                                              2005                             2004
DOMESTIC EQUITY TRADING                        Month    Year to date            Month     Year to date


Equity Trading Value (£m)                    187,905       2,497,539          171,717       2,316,194
Number of Equity Trades                    5,006,669     63,073,310         4,391,055      53,907,459


INTERNATIONAL EQUITY TRADING

Equity Trading Value (£m)                    255,848       2,702,929          210,806       2,403,406
Number of Equity Trades                    1,639,316      18,089,550        1,360,791      12,389,392


ORDER BOOK TRADING

Order Book Value (£m)                          81,916       1,052,135            64,737         878,633
Order Book Trades                           4,157,196      51,415,546         3,510,327      40,868,892


                                                           December 2005            December 2004

DOMESTIC MARKET CAPITALISATION (£bn)                                 1,838                           1,493

TOTAL NUMBER OF COMPANIES                                            3,093                           2,837
Main Market UK                                         1,358                    1,465
Main Market International                                334                      351
of which techMARK                                        148                      168
AIM                                                    1,399                    1,021
Professional Securities Market (Equity only)               2                        -


                                                    2005                             2004
MONEY RAISED (£m)                                    Month       Year to date         Month        Year to date


Equity Money Raised:
  New issues: Main Market UK                         1,074           5,966               132         3,431
  New issues: Main Market International                686           4,583               593         1,364
  New issues:  AIM                                   2,018           6,461               497         2,740
  Further issues: Main Market UK                       430           8,631               281         8,801
  Further issues: Main Market                          726           1,051               103           307
International
  Further issues: AIM                                  499           2,481               331         1,916
  PSM (new & further, UK & International)                -              38                 -             -

COMPANIES ADMITTED                                      83             626                63           423
                                                    

Debt Money Raised (£m)

  Main Market UK                                    34,319         148,309             9,552       127,508
                                                               
  Main Market International                         13,542         121,078             5,611        90,180
                                                               
  PSM (  PSM (UK & International)                    3,223          22,569                 -             -
                                                               
                      This information is provided by RNS
            The company news service from the London Stock Exchange