Oslo Børs is effected by the global downturn in securities market since the Winter of 2000. The Benchmark Index fell by 25.5 per cent in the third quarter, and in the year to date by 33.8 per cent.
Shares worth NOK 97.0 billion changed hands in the equity market in the third quarter compared with NOK 111.1 billion in the second quarter. Turnover figures include shares, primary capital certificates, warrants and subscription rights. Turnover of warrants came to NOK 97.0 million compared with NOK 20.0 million in the second quarter.
Transaction numbers were somewhat higher than in the second quarter but lower than in the same period of 2001. Reduced activity in the equity market has brought lower volumes and weaker profits in the derivatives market.
However, the reduced activity in the equity market entails higher activity and profits in the fixed income market. At the end of the third quarter 851 bonds were quoted. In the course of the quarter 30 new bonds were issued. Including enlargements of existing loans, bonds issued totalled NOK 38.1 billion in the quarter.
Should activity levels in the last three months of the year mirror the September level, the post-tax result for the full year is estimated to be about 20 per cent lower than in 2001. This estimate takes into account maintenance costs in connection with the bourse's refurbishment project. Maintenance costs are of the order of NOK 13 million, or about NOK 10 million higher in 2002 than in 2001. The effective tax rate increased from about 19 per cent in 2001 to 28 per cent in 2002 on a full-year basis.
Although activity has picked up somewhat in October, the outlook for activity levels in the bourse's market places in the periods ahead is highly uncertain. Oslo Børs is prepared for the current market situation to continue in 2003, which will entail lower revenues in 2003 than in 2002. Given the large element of fixed costs in the bourse's cost structure, a continual focus will be kept on costs to offset revenue reductions as far as possible.
Read the full version of Oslo Børs Holding ASA's 3rd quarter report on www.ose.no.
