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Out of the 198 shares listed on the Copenhagen Stock Exchange, 148 saw prices rise in 2004. The value of the listed companies now amounts to DKK 829 billion as against DKK 718 billion at the end of 2003.
The Exchange’s KAX All-Share Index, which includes all listed companies, gained 20 per cent in 2004. The KFX Index comprising the 20 most actively traded shares gained 14 per cent. MidCap+ peaked from among the Exchange’s special indices with an advance of 46 per cent, and then followed SmallCap+, whose shares have gained 30 per cent on average this year.
Copenhagen Airports and GN Great Nordic were the star performers among the KFX constituents and increased by 64 per cent and 49 per cent, respectively, whereas the investors in Vestas Wind Systems suffered a capital loss of 28 per cent.
The top scorer among the MidCap+ companies was D/S Torm, which increased by 157 per cent. IC Companys leads the SmallCap+ segment with a price rise of 84 per cent since the turn of the year.
Share trading reaches new highs
Never before have so many shares changed hands at the Copenhagen Stock Exchange. The value of share trading amounted to DKK 583 billion in market value, which is more than a 28 per cent increase on the previous record set in 2000.
President and CEO Hans-Ole Jochumsen said:
“The Danish share investment culture has developed positively in the last few years. Private investors have become more active on the market. They conclude more trades and have been willing to invest in the new shares offered by the companies. The companies have raised more than DKK 11 billion via issues for further development of their activities and they have got many new private investors.”
SmallCap+ and MidCap+ are a success
The Copenhagen Stock Exchange is constantly working to make the Danish equity market as attractive as possible for the benefit of Danish companies, stock brokers, investors and society as a whole.
In 2003, the Exchange established SmallCap+ and MidCap+, two special segments for small and medium-sized companies that make an extra effort to communicate with the investors and to ensure that investors may trade their shares at sharp prices throughout the day. MidCap+ and SmallCap+ have been a success for the ‘plus companies’ as well as their investors.
New initiatives on the way
The Exchange is involved in a number of initiatives promoting Danish business and industry.
It is often difficult for small and medium-sized Danish companies with a market capitalisation between DKK 20 million and up to DKK 400-500 million to attract new capital. These companies are typically too small to go public since the disclosure requirements, among other things, demand considerable resources. Earlier this month, the Exchange presented a proposal for how to improve access to risk capital for such companies. The proposal is now being submitted to public consultation, and the organisations of the corporate sector and others with an interest in ‘the business Denmark’ have been invited to comment on the proposal until 24 January 2005.
“We have made a proposal for how an alternative marketplace may contribute to making it easier for small companies to raise risk capital. The Exchange’s trading system can be easily adapted to this purpose. Thus, we have invited the interest groups and other interested parties to comment on the proposal so that we – if the proposal is widely accepted – may begin establishing an alternative marketplace in 2005. If we succeed, I am convinced that many small and medium-sized companies – and their investors – may benefit from such an innovation on the Danish equity market”, said Hans-Ole Jochumsen, President and CEO of the Copenhagen Stock Exchange.
1 Figures regarding the year’s turnover and price rises and market value are based on market data of yesterday, Tuesday 21 December, after closing of the trading system at 17:00.
