Listed Exchanges Sector Continues To Outstrip The Market - Growth In Specialist Index Confirms Stock Market Success Of Newly Floated Exchanges

Latest figures have confirmed the remarkable stock market performance of those exchanges which have chosen to practice what they preach by floating their shares.

In the three months to end March 2005, the FTSE/MV Exchanges Index - the specialist index that tracks the share performance of exchanges and other trading venues - increased by 6.1%. Over the same period, the FTSE All-World Index registered a fall of 1.4%.

The most recent quarterly figures confirm a trend that has been apparent throughout the short life of this new sector. From its inception in August 2001, the FTSE/MV Exchanges Index had grown by 107% by the end of March 2005 - nearly eight times the growth registered by the FTSE All-World Index, which was up just 13.9% over the same period (see Figure 1).

The star performer among the constituents of the FTSE/MV Exchanges Index over the three months to end March 2005 has been Deutsche Börse which, despite the apparent foundering of its bid for the London Stock Exchange, rose by 25.2%. The LSE’s other potential suitor, Euronext, also saw gains of 16.8%, while the LSE itself dropped by 23.2% as hopes for a rapid deal faded.

Other strong performers over the same period were Singapore Exchange, which saw growth of 16.0%, and TSX Group, which grew by 15.9%. Chicago Mercantile Exchange, on the other hand, saw its share price decline by 15.2% from its peak at the end of December, but was nevertheless up by a startling 100.6% over the year to the end of March 2005.

In fact, every constituent of the index registered 20% or greater growth over the 12 months to end March 2005, with the solitary exception of OM HEX AB which fell by 15.3% (see Figure 2).