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- Irish Stock Exchange becomes number one location in the world for listing of global investment funds.
- Investment fund listings up 22%, specialist debt listings up 40% over third quarter of 2003.
- ISEQ continues to outperform most global stock markets.
- Daily transactions on equity market up 9% in first nine months, decrease in average daily turnover to €282 million euro.
The Irish Stock Exchange has become the number one location in the world for the listing of investment funds, the third quarter review from the ISE reveals. The third quarter of the year has seen investment fund listings increase by 22% and 194 new funds and sub-funds have been listed so far this year. There are now almost 4,000 different investment funds and sub-funds listed on the ISE.
The ISE has also experienced phenomenal growth in the listing of specialist debt instruments, with a 40% increase in the number of listings over the same period in 2003. Currently, a total of 1,084 specialist debt instruments are listed on the Irish Stock Exchange.
“The exchange is continuing to play a pivotal role in Ireland’s development as a location for both investment funds and special purpose vehicles. In the past three months there has been two distinct trends in our debt security business – a major increase in the listing of high yield bonds and a significant increase in deals which are backed by mortgage loans and secured on property,” said ISE Chief Executive Tom Healy.
“The business we have built up both in investment funds and debt securities in recent years is a vindication of the decisions that were taken to diversify the Exchange’s business. And it is a source of great pride that the professionalism and skills that we have built up has resulted in the Exchange becoming the world leader for the listing of these specialised instruments,” said Mr Healy.
He added that the ISE’s funds and debt securities listing business now accounts for more than half the Exchange’s total business. “This has been an extraordinarily successful diversification of its business by the Exchange and the fact that we are now the premier location for this specialist business ahead of all the major global financial centres is a testament to the work that has been put in over the past few years,” Mr Healy added.
The Irish equity market continued to perform strongly against global markets and the 14% increase in the ISEQ Overall Index in the January-September period outperformed global indices such as the FTSE 100, FTSE All Share, CDAX, NASDAQ, Dow Jones Industrial Average and Eurostoxx 50. The ISEQ subindices also performed well with the ISEQ General and Small Cap indices gaining 21% and 14% respectively. The ISEQ Overall, General and Small Cap indices all reached their 2004 highs in September, 2004.
The number of transactions on the Irish Stock Exchange increased by 9% for the nine months to the end of September, 2004 compared to the same period in 2003, emphasising the underlying liquidity of the market. The average number of transactions per day was 2,388 compared to 2,196 in the first three quarters of 2003, reflecting an increased level of investment in equities by private investors.
The resurgence of retail investment in the market was offset by lower institutional activity in the last quarter with average daily turnover of €282 million euro for the year to date, down on the € 312 million euro for the equivalent period in 2003.
Companies listed on the ISE raised a total of € 323 million euro in the third quarter, bringing the total money raised on the market this year to € 2,472 million euro. This fundraising figure includes the two initial public offerings this year by Eircom plc and C&C Group plc. Turnover in Government bonds for the first nine months of 2004 totalled €57.9 billion euro, a marginal decrease on the same period in 2003.
“In volatile global equity markets the Irish Stock Exchange continues to outperform its peers and our presence in the specialist debt and investment funds businesses has continued to strengthen” Mr Healy said.
