In the first half of 2001 the turnover on the equity market rose by 4 per cent to an average of DKK 3.2 billion in market value per trading day compared with the same period in 2000. In the second half of 2001, the average daily trading volume amounted to DKK 1.6 billion in market value. For the full year, the average daily trading volume was DKK 2.4 billion in market value.
During the first half of 2001, the number of equity trades fell by 11 per cent to just over 10,000 per trading day, and in the second half of 2001 the average daily number of trades reached just over 6,500.
In terms of trades effected via the trading system, the trading in 2001 was on level with 2000 with an average turnover via the trading system of DKK 0.9 billion per trading day. The share of trades executed in the opening hours of the trading system has risen from 42 per cent in the second half of 2000 to 73 per cent in the second half of this year.
Today at noon the KFX Index was at 271.04 , corresponding to a drop of 13.7 per cent (313.90) compared with end-2000. The price level of Danish equities has not dropped as markedly compared with the decline experienced by the foreign markets that are often used as a basis of comparison. This is the second year in a row that foreign indices have seen generally steeper falls than is the case with the KFX Index.
On 21 September, the KFX Index experienced its sharpest day-to-day drop this year of 3.9 per cent as a response to the terror in New York on 11 September. On 11 October, the market saw the year's largest day-to-day increase in the KFX Index of 3.4 per cent.
The generally unfavourable investment climate and the sagging price level have had an adverse influence on both the influx of new companies and the issuance activity of already listed companies. Five new companies have been admitted for listing on the Exchange this year against eight in 2000. The proceeds from sale and new issues amounted to DKK 1.1 billion against DKK 4.8 billion last year.
Through issuance activities, the listed companies raised proceeds of just under DKK 5.5 billion compared with just under DKK 50.0 billion. Last year's proceeds were marked by the proceeds of the merger between Danske Bank and RealDanmark, which single-handedly amounted to more than DKK 30 billion.
The turnover on the bond market is basically on level with 2000 with an average daily turnover of just over DKK 22 billion in market value. However, the fist half of 2001 experienced a decline in turnover of 11 per cent compared with the first half of 2000, but an increase of 9 per cent in the second half compared with the same period the year before.
This year, the number of bond trades have gone from just over 4,200 in 2000 to an average of just under 4,700 trades per trading day. The average trade size was just over DKK 4.7 million in 2001 compared to DKK 5.2 million in 2000.
The historically low interest rate level has meant that the minimum coupon rate could be extraordinarily reduced to 3 per cent with effect from 23 November and until the year out. However, the biannual fixing of the minimum coupon rate in December meant that the minimum coupon rate from the turn of the year will again be fixed at 4 per cent.
Several bond issuers have used the short period with a minimum coupon rate of 3 percent to issue 3% bonds to a total nominal amount of DKK 9.5 billion.
In 2001, derivatives trading has been in the region of 2,000 contracts per day, which corresponds to a drop of 47 per cent compared with 2000. The trading in share options has, however, increased considerably as a total of 26,000 contracts have been traded compared with a total of 3,975 the year before - an increase of 560 per cent.
The year 2001 was the first year that Danish derivatives could be traded in the Swedish Click system. In June 2001, members of the OM exchange in London and members of the Stockholmsbörsen gained access to trade Danish derivatives, and in November a market maker scheme was established, which ensures that prices are quoted continuously on the most traded derivatives.
President and CEO Hans-Ole Jochumsen says: "With the new reporting rules we have removed the polluting element of double reports from our price picture. Especially foreign investors, who have not been familiar with the Danish reporting rules, will now find that our trading information is in keeping with the information known from several other international markets. Another positive affect is also that the share of trades effected in the trading system is now more than 70 per cent. The high share of trades effected in the system makes the Danish equity market much more attractive to potential remote members, and through this we are multiplying our possibilities of creating a greater distribution network and greater liquidity to the benefit of the entire market place.
In 2001 we succeeded in - despite the international dampening of the securities business - attracting 13 new members, so that we now count 49 members of which 19 are remote members.
On the bond market we have developed an auction system for the use of both the Nationalbanken and mortgage credit institutes for their issues. In connection with the refinancing of the adjustable interest rate loans in December, the bond turnover reached more than DKK 100 billion on one single day for the first time in the Exchange's history.
The derivatives market is still struggling in Denmark, which is not least due to unfavourable tax rules. In continuation of the many initiatives that the Exchange has launched during the past couple of years, it is gratifying to see that the options market has increased significantly by more than 500 per cent, yet the turnover is still not satisfactory."
