- The equity market reached its second highest level with DKK 416.5 billion
- More than 1 million share trades were effected in the trading system - on-exchange trading is gaining ground
- The MidCap+ and SmallCap+ shares increased liquidity more than the KFX shares
- Two new companies and low issuance activity
- Turnover on the XtraMarked for non-listed investment certificates almost doubled compared with the debut year 2002
- Turnover in share derivatives increased by 43 per cent
- Trading in mortgage credit bonds reached a new high for the second year in a row and progressed by 26 per cent to DKK 4,637 billion
- Trading in government bonds rose by 16 per cent to DKK 2,216 billion
In 2003, turnover on the equity and bond markets developed positively, and the share trading effected via the trading system set new records. The positive development in turnover was pulled by a strong autumn, which implied that the somewhat dull beginning of 2003 was more than recovered.
In 2003, the total turnover on the equity market reached DKK 416.5 billion, the second highest turnover in the history of the Exchange only surpassed by the turnover in 2000 of DKK 453.1 billion, when the IT bobble was about to burst. Compared with 2002 the turnover has risen by more than 6 per cent.
The growing use of the trading system for automatic execution of trades meant that on-exchange trading - the term used for trading effected in the trading system - reached an all-time high in 2003 with a turnover of nearly DKK 263.7 billion.
The most actively traded share in 2003 was Danske Bank with a total turnover of some DKK 64.9 billion, followed by A.P. Møller - Mærsk B with a turnover of DKK 62.4 billion. Novo Nordisk came third with a total turnover of more than DKK 55.6 billion. The three most active shares thus accounted for 44 per cent of the total turnover.
More than 1 million trades effected in the trading system
The fact that the investors were more eager to trade shares also meant that the
number of on-exchange trades, i.e. trades effected automatically via the
trading system, also set new records. For the first time ever, the number of
on-exchange trades reached 1 million as approx. 1.3 million trades were
effected via the electronic trading system. In the aggregate 1.9 million share
trades were effected, which is the second highest share trading volume in the
history of the Exchange - only second to the year 2000, which reached just
under 2.1 million share trades.
The MidCap+ and SmallCap+ shares increased liquidity more than the
KFX shares
The investors gave the new MidCap+ and SmallCap+ segments a good
reception. The segments were introduced in the spring of 2003, and the
turnover in the two segments has developed remarkably well. Turnover in the
constituent shares of MidCap+ and SmallCap+ at end-2003 amounted to
DKK 22.2 billion and DKK 184.7 million, which is a rise of 52 per cent and
45 per cent, respectively, compared with 2002.
During the course of 2003, the liquidity improved considerably, which is also reflected in the record-breaking volume of on-exchange trades. The difference between the bid and ask prices, the so-called spread, of the MidCap+ and the SmallCap+ shares narrowed more than was the case with the KFX shares. The improved spread and the growing use of on-exchange trading may be ascribed to the fact that both Danish and international investors have become more eager to trade and the fact that several of the companies in the two new segments have entered into market maker agreements.
Two new companies and low issuance activity
In 2003, two new companies were listed on the Copenhagen Stock Exchange.
Through issues these companies raised proceeds of more than DKK 289
million. The other listed companies were behind 86 issues, which procured
capital amounting to some DKK 756 million in the aggregate. However,
compared with previous years the issuance activity is lower.
Investment funds listed on the stock market also progressed in 2003. Total turnover amounted to DKK 27.7 billion, which is almost 8 per cent higher than in 2002.
The turnover on the XtraMarked almost doubled
On the XtraMarked - the market for non-listed investment funds - the total
turnover in 2003 was DKK 36.3 billion, corresponding to an average daily
turnover of DKK 146 million up from DKK 78 million in 2002 - almost a
twofold increase compared with the debut year.
Turnover on the share derivatives market gained 43 per cent on 2002
The derivatives market progressed fairly. In 2003, a total of 618,061 futures
contracts were traded, up from 436,863 in 2002, and 150,832 option contracts
were traded, up from 101,463 in 2002. In the aggregate this corresponds to an
increase of 43 per cent. The underlying value of the contracts traded
corresponds to DKK 16.2 billion. Open interest at end-2003 was 34,420
contracts as against 24,205 last year. The increase in the number of contracts
traded and open interest reflect an increased interest in using derivatives for
hedging and exposure in the underlying equity market from both professional
and private investors.
In August, futures and options on the A.P. Møller - Mærsk B share were introduced. With a turnover of 6,027 options in 2003 the new contracts have received a warm welcome by the investors.
The increase in turnover on the derivatives market has primarily been pulled by a rise in the interest from Danish members, which have seen a higher influx of private customers than before.
Trading in mortgage credit bonds reached a new high for the second
year in a row
In 2003, the activity on the bond market was also bustling, and the turnover
totalled DKK 6,877 billion, which is more than 16 per cent higher than in
2002. The increase in turnover was primarily backed by higher activity on the
mortgage credit market, which reached a new high for the second year in a
row. The value of trading in mortgage credit bonds came to DKK 4,637
billion, 26 per cent more than in 2002. Turnover in government bonds was
largely on level with 2002 and accounted for DKK 2,216 billion in 2003.
In August 2003, a new classification of the bonds listed on the Copenhagen Stock Exchange was implemented. Apart from the two above-mentioned groups, the value of trading in bonds issued by international organisations totalled DKK 1.5 billion, which is 41 per cent less than the year earlier. The turnover in asset backed securities was some DKK 1.6 billion, a rise of 46 per cent on 2002. The total turnover in corporate bonds reached just under DKK 20.2 billion, which is 31 per cent lower than in 2002.
The most active government bond was 5% INK. St.lån with expiry in 2013 at DKK 502.5 billion, and the most actively traded mortgage credit bond was RD 5% 23D.s with expiry in 2035 at DKK 238.4 billion.
During the course of 2003, a total of 189 new bonds were listed on the Copenhagen Stock Exchange. 118 were mortgage credit bonds, 52 were corporate bonds, 13 were asset backed securities and 6 were government bonds.
