Market report - January 2006
London Stock Exchange Plc
06 February 2006
News Release
6 February 2006
MR55-1.06
VALUE TRADED ON SETS SOARS 63 PER CENT IN JANUARY
The London Stock Exchange has started 2006 with sizable increases in trading,
most notably on SETS, its electronic order book. In January, the total value
traded on SETS increased 63 per cent year on year to a record £117.7 billion.
At the same time, the number of trades on SETS increased 45 per cent to 5.4
million. The total value and total number of SETS trades in the month exceeded
previous records by 12 and 13 per cent respectively.
Eleven of the twenty busiest days ever on SETS were recorded during January.
The extremely strong growth in SETS trading is part of a long-term trend toward
electronic trading on the Exchange's markets.
The average daily number of trades on SETS was up 38 per cent to 258,045, while
the average daily value traded climbed 56 per cent to £5.6 billion. The average
size of a SETS bargain during January was £21,729, a 13 per cent increase on
January 2005.
Clara Furse, the Exchange's Chief Executive, commented:
"January's record trading figures continue the pattern of accelerated SETS
growth. Our investment in the speed, functionality and capacity of our systems
continues to act as a catalyst for the development of new trading strategies,
which use the latest technologies."
Across the Exchange as a whole, the average daily number of trades was up 36 per
cent on last year to 406,231. The average daily value traded was also a record
at £27.1 billion, up 40 per cent on January last year. The increase in the
average daily value traded in UK equity over the year was 30 per cent, well
ahead of the CAGR (compound annual growth rate) of 16 per cent over the last
twenty years.
Trading in ETFs was up 181 per cent on January 2005, with the total value traded
during the month reaching £1.2 billion, an increase of 119 per cent on January
last year. Covered warrants trading also continued to show strong growth, with
the number of trades during the month up 92 per cent on January last year, and
the value traded up 110 per cent to £28.6 million.
There were four IPOs on the Main Market during January, raising £27 million
between them. There were seven IPOs on AIM, raising £76 million. There were
also two IPOs on the Professional Securities Market for wholesale securities.
These GDR issues, from the Philippines and India, raised £103 million between
them.
RNS, the Exchange's service for the dissemination of company news, transmitted a
total of 13,629 announcements during the month, an increase of 31 per cent on
January 2005. This represented an overall market share of 77 per cent. The
totals included 4,728 news and results announcements, representing an increase
of 17 per cent on 2005 and an 87 per cent share of all news and results
announcements made.
There were 21 trading days during January 2006, one more than in January 2005.
- 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
2006
2006 2005
DOMESTIC EQUITY TRADING Month Year to date Month Year to date
Equity Trading Value (£m) 268,040 268,040 196,769 196,769
Number of Equity Trades 6,555,507 6,555,507 4,752,860 4,752,860
INTERNATIONAL EQUITY TRADING
Equity Trading Value (£m) 301,263 301,263 189,192 189,192
Number of Equity Trades 1,975,354 1,975,354 1,212,814 1,212,814
ORDER BOOK TRADING
Order Book Value (£m) 117,749 117,749 72,093 72,093
Order Book Trades 5,418,950 5,418,950 3,742,880 3,742,880
January 2006 January 2005
DOMESTIC MARKET CAPITALISATION (£bn) 1,887 1,516
TOTAL NUMBER OF COMPANIES 3,087 2,844
Main Market UK 1,345 1,460
Main Market International 330 349
of which techMARK 148 167
AIM 1,408 1,035
Professional Securities Market (Equity only) 4 -
2006 2005
MONEY RAISED (£m) Month Year to date Month Year to date
Equity Money Raised:
New issues: Main Market UK 27 27 2 2
New issues: Main Market International - - - -
New issues: AIM 107 107 10 10
Further issues: Main Market UK 165 165 91 91
Further issues: Main Market 284 284 69 69
International
Further issues: AIM 300 300 72 72
PSM (new & further, UK & International) 103 103 - -
COMPANIES ADMITTED 30 30 22 22
Debt Money Raised (£m)
Main Market UK 12,426 12,426 11,180 11,180
Main Market International 11,398 11,398 5,008 5,008
PSM ( PSM (UK & International) 2,206 2,206 - -
This information is provided by RNS
The company news service from the London Stock Exchange GLL
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