Mondo Visione Worldwide Financial Markets Intelligence

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Copenhagen Stock Exchange: The Equity Market Blossomed In The First Six Months Of The Year

Date 04/07/2000

The value of equity trading was DKK 378 billion in the first six months of the year, up from DKK 220 billion in the first half of 1999, a rise of 72 per cent. The average daily value of trading rose from DKK 1.8 billion to DKK 3.1 billion.

The average daily value of trading in June amounted to DKK 2.8 billion, a 64 per cent rise on the corresponding month last year, and a 7 per cent rise on May.

Novo Nordisk was the most actively traded share of the month with a turnover of DKK 6.1 billion. Group 4 Falck was the second most active share with DKK 5.4 billion, while GN Great Nordic ended up being a close third with DKK 5.2 billion.

The KFX companies reached a total turnover of DKK 39.2 billion, corresponding to 74 per cent of the total turnover. Only one KFX company made the list of the 20 star performers. GN Great Nordic increased by 14 per cent. The poorest performance was in NEG Micon; it dropped by 14 per cent.

The KFX Index closed June at 287.53, a fall of 1.1 per cent compared with end-May, but a rise of 40 per cent compared with end-June 1999. The KFMX Index, which comprises the small and medium-sized companies, closed the month at 1,154.49; a fall of 0.9 per cent compared with end-May. The All-Share Index fell by 2.3 per cent over the month and closed at 863.13.

In June, the Danish companies raised a total of DKK 10.7 billion, and Group 4 Falck accounted for DKK 8.9 billion. Moreover, a new company joined the market when RTX Telecom went public on 8 June - the fourth introduction of the year. RTX Telecom raised almost DKK 0.66 billion through an issue and sale of existing shares - only SimCorp has raised more this year with DKK 0.7 billion.

The bond trading volume amounted to DKK 393.8 billion in market value, an average daily value of trading of DKK 20.7 billion, a fall of 8 per cent compared with May 2000 and a fall of 28 per cent compared with June 1999.

In the first six months of the year, the trading volume was DKK 2,837 billion, down from DKK 3,952 billion in the corresponding period a year earlier. This corresponds to a fall of 28 per cent.

The government bonds reached a turnover of DKK 208 billion in market value and the standard mortgage credit bonds DKK 152 billion, a fall of 22 and 23 per cent, respectively, compared with May.

The most active bond was the government 6% 2009 with DKK 48.6 billion, followed by the Treasury note 4% 2002 with DKK 33.3 billion.

Nykredit's 7% 2032 and 6% 2029 reached turnovers of DKK 8.9 billion and DKK 8.2 billion and were the two most active mortgage credit bonds.

The average true yield closed the month at 6.50 per cent, a rise of 11 basis points compared with end-May. Since the beginning of the year the true yield has increased by 51 basis points. On 26 June, the average true yield peaked with 6.51 per cent.

At the end of June 2000, the volume of bonds in circulation amounted to DKK 1,921 billion, which was almost the same as in May. In nominal terms the figure was DKK 1,958 billion.

Turnover in futures and options totalled 78,787 contracts in June, a 15 per cent rise over the month in the average daily trading volume. The most actively traded instrument was the KFX future with 72,607 traded contracts, which produced 94.6 per cent of the total FUTOP turnover.