The share price of the London Stock Exchange (LSE) fell by 12 per cent during November 2009 according to the FTSE Mondo Visione Exchanges Index, following a tumultuous month in which established trading venues continued to fight competition from new entrants.
The Index, which aims to reflect market sentiment and is a key indicator of exchanges performance, grew 2.2 per cent led by growth in Mexico’s Bolsa Mexicana de Valores SA and the US exchanges CME Group and Intercontinental Exchange up 9.6, 8.5 and 6.6 per cent respectively.
Commenting on the Index which closed at 23,165.99 on the 30 November 2009, Herbie Skeete, Managing Director, Mondo Visione and also Co-founder of the Index said:
“In another eventful month for listed exchanges, Mexico’s Bolsa Mexicana de Valores SA led growth whilst the LSE and Greece’s Hellenic Exchanges SA lost 12 and 13.3 per cent in value respectively.
“The LSE's market share remains under siege on two fronts: the likes of Chi-X, BATS and Turquoise are continuing to take market share from the top, while PLUS Markets continues to chip away at the small companies market.
“It is not all doom and gloom however, as the LSE’s new management team under Xavier Rolet, continues to re-engineer the exchange on the fly.”
The long-term picture appears to reflect a steady return to stability however, as every exchange bar NASDAQ OMX Group, has grown in the past 12 months, contributing to year-on-year growth of 56.7 per cent.
The FTSE Mondo Visione Exchanges Index best performer by capital returns in US dollars was Bolsa Mexicana de Valores SA with a 9.6 per cent increase in share price from 30 October to 30 November 2009.
The FTSE Mondo Visione Exchanges Index worst performer by capital returns in US dollars was Hellenic Exchanges SA with a 13.3 per cent decrease in share price from 30 October to 30 November 2009.
FTSE Mondo Visione Exchanges Index Monthly Analysis
– November 2009