Since the opening of the KVX Growth Market on 1 September 2000, the structure of the Danish equity market has changed radically, thus rendering the KVX Growth Market superfluous. Among other things, the changes have made the industries more visible to the investors, who may now also track the performance of peer industries on the other exchanges in the NOREX Alliance, as these exchanges classify the companies according to the same model as the Copenhagen Stock Exchange.
On 1 April, the Exchange introduced the two plus segments, SmallCap+ and MidCap+, for the small and medium-sized companies that distinguish themselves in three areas: high liquidity in the company's shares, frequent information, including quarterly reports, and good investor services.
Many KVX companies have been part of an efficient marketing group. In continuation of the establishment of MidCap+ and SmallCap+, new marketing groups have been formed that support activities to promote the companies. Yesterday, for instance, eight MidCap+ and SmallCap+ companies staged an event in Aarhus, which not less than 250 private investors attended.
In the summer of 2001, the companies listed on the Copenhagen Stock Exchange were reclassified according to the internationally respected model 'the Global Industry Classification Standard', the so-called GICS model, developed by MSCI and Standard & Poor's. The model is also used by the NOREX exchanges in Oslo and Stockholm.
This model ensures a very subtle 4-level classification of the Danish equity market with indices on the top three levels, viz. the sector, industry group and industry levels. A total of more than 75 indices based on the activities generating the largest income for the companies have since then tracked the performance of the Danish equity market carefully.
The investors on the Danish equity market have thus been given a much more detailed picture of the development in the companies' various fields of activity. With the establishment of SmallCap+ and MidCap+ the investors will find it easier to identify and track the performance of the small and medium-sized companies that present activities to build investor goodwill and make a special effort to ensure that their shares live active lives on the stock exchange.
When launched on 1 September 2000, the KVX Growth Market comprised 10 companies, and the maximum number of simultaneous companies is 13. A total of 16 companies have joined the KVX Growth Market at one time or another. Like on the opening day, the market today comprises 10 companies. A mere 50 per cent of these companies are expected to meet the existing eligibility requirements in connection with the next annual review. In the light of the recent development and the present market conditions it is unrealistic to expect that new companies will join the KVX Growth Market in its present form.
Six of the existing KVX companies have qualified for one of the two plus segments, and we expect the other companies to be potential candidates in connection with the future review.
