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 +44 (0)20 7797 1222
newsroom@londonstockexchange.com
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
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
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
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