Market report - August 2005
London Stock Exchange Plc
09 September 2005
News Release
9 September 2005
MR50-08.05
EQUITY TRADING CONTINUES STRONG PERFORMANCE IN AUGUST WITH 37 PER CENT INCREASE
ON 2004
Trading on the London Stock Exchange remained strong in August 2005, continuing
a trend of significant growth in trading during the year. In total, there were
6.8 million UK and international trades carried out on the London Stock Exchange
during the month. This was an increase of 37 per cent on the total number of
trades during August 2004 and, following on from a record July, the third
highest monthly number of trades on record. The total value traded across the
Exchange increased 20 per cent on August 2004 to £395.5 billion, underscoring a
strong start to the second half of the calendar year.
The average daily number of trades across the Exchange was 308,142, up 30 per
cent on August last year. The average daily value traded was £18 billion, up 15
per cent on the same month last year.
The average daily number of trades on SETS during August 2005 was 190,287,
bringing the monthly total to 4.2 million, an increase of 30 per cent on the
number of SETS trades during August 2004. This brought the total number of SETS
trades so far this calendar year to 33.2 million, up 27 per cent on the same
period in 2004. The total value traded on SETS during August 2005 increased by
34 per cent on the previous year to £84.6 billion, and the average daily value
traded was up 28 per cent to £3.8 billion.
Included in the SETS figures, SETSmm saw an average of 27,544 order book trades
daily, nearly double the average daily number of trades in August last year.
The average daily value traded on the SETSmm order book increased 86 per cent to
£241.3 million.
Some of the SETSmm trading growth can be attributed to the transfer of 198 Main
Market small cap securities onto SETSmm on 11 July, which brought the total
number of SETSmm securities to 453. Compared with their trading performance
during June 2005, their last full month on SEAQ, the transferred stocks
benefited from a 25 per cent narrowing in spread, the overall average daily
number of trades increased 47 per cent and the overall average daily value
traded increased nine per cent.
The total value of ETF trades during August was £676.4 million, up 66 per cent
on the same month last year, and the total number of trades was up by 24 per
cent to 10,195.
In addition, August was another good month for IPOs on AIM, during which there
were 18 IPOs raising £237.2 million between them. This brought the total number
of IPOs on AIM during the calendar year so far to 229. The money raised by AIM
IPOs this year to the end of August was £2.5 billion, more than the total sum
raised by AIM IPOs during the whole of 2004.
There were 22 business days in August 2005, compared with 21 in August 2004.
- ends -
For further information, please contact:
Catherine Mattison Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com
Notes to editors:
• About the London Stock Exchange
The London Stock Exchange is one of the world's leading equity exchanges and an
international provider of services that facilitate the raising of capital and
the trading of shares and debt securities.
The London Stock Exchange is the most international equities exchange by trading
in the world and Europe's largest pool of liquidity. In 2004, 80 per cent of
all European IPOs floated in London. By the end of 2004, the market
capitalisation of UK and international companies on the London Stock Exchange's
markets amounted to £3.5 trillion, with £4.7 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:
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 most successful
companies, giving them access to one of the deepest pools of capital in the
world.
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.
• 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) but may include placings.
• 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
media@ftse.com
• 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
August 2005
2005 2004
DOMESTIC EQUITY TRADING Month Year to date Month Year to date
Equity Trading Value (£m) 188,994 1,618,151 155,394 1,540,774
Number of Equity Trades 5,132,006 41,121,508 4,010,973 35,131,180
INTERNATIONAL EQUITY TRADING
Equity Trading Value (£m) 206,466 1,675,316 174,160 1,564,195
Number of Equity Trades 1,647,127 11,198,511 954,428 7,648,982
ORDER BOOK TRADING
Order Book Value (£m) 84,611 662,630 63,225 582,109
Order Book Trades 4,186,323 33,186,347 3,215,779 26,119,101
August 2005 August 2004
DOMESTIC MARKET CAPITALISATION (£bn) 1,710 1,374
TOTAL NUMBER OF COMPANIES 3,012 2,762
Main Market UK 1,383 1,486
Main Market International 337 359
of which techMARK 149 171
AIM 1,292 917
2005 2004
MONEY RAISED (£m) Month Year to date Month Year to date
New equity issues: UK Main Market and 353 5,959 106 3,975
AIM
Further, Rights and Other 522 5,479 609 7,255
Bonds, Warrants, Fixed Interest 4,170 83,626 3,908 85,686
New equity issues: International Main - 3,077 - 587
Market
Further, Rights and Other 7 325 13 180
Bonds, Warrants, Fixed Interest 12,593 79,517 3,066 65,328
COMPANIES ADMITTED 36 424 36 244
This information is provided by RNS
The company news service from the London Stock Exchange
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