Copenhagen Stock Exchange: The Nosedive Of The International Equities In 2002 Resulted In The Sharpest Fall In Prices On The Copenhagen Stock Exchange For A Decade

Like the international equity markets, the KFX Index on the Copenhagen Stock Exchange also fell in 2002. If you compare the fall of the KFX Index with the movements in market prices on major international stock exchanges and the other partners of the NOREX Alliance, the KFX Index once again outperformed the others, as it has done in the last two years. Only Nikkei and Dow Jones did relatively better than the KFX Index. The fall in the FTSE indices is on a par with the fall in the KFX Index. In general, all indices suffered sharp drops.

Based on prices at twelve noon on the last trading day of the year, the development of the KFX Index in 2002 shows a fall of 26 per cent compared with end-2001, which is the largest percentage fall since the launch of the index in 1989. At the same time, the year has been characterised by much volatility with large daily fluctuations in the KFX Index. Seen over a two-year period, the KFX Index has thus fallen by some 36 per cent.

The smaller shares of the KFMX Index have only fallen by 6 per cent in 2002, compared with a 17 per cent fall from the year 2000 to 2001. The KAX Index, which comprises all shares, has fallen by 21 per cent this year, compared with a 14 per cent fall last year. The sharpest percentage fall seen over the last two years was reported by the KVX Index, which fell by approx. 73 per cent during this period.

In 2002, bond trading on the Copenhagen Stock Exchange was influenced by the falling interest rates and the general decline in equity prices throughout the world. Both factors sparked interest in bonds. In the course of 2002, the true yield fell from 3.7 per cent, 4.7 per cent and 5.2 per cent for the 1, 5 and 10-year bonds to 2.9 per cent, 3.7 per cent and 4.5 per cent. Especially in the second half of 2002, the falling interest rates caused a refinancing wave.