The Irish Stock Exchange [ISE] has published its regular quarterly performance review [covering Q1 2008]. The review reveals that concerns in global markets arising from the uncertainty associated with sub-prime lending and its consequential impact on interbank liquidity continue to negatively impact on equity market capitalisations and indices. In common with every major US and European index, the ISEQ experienced significant falls over the last three months. The ISEQ Overall index was down 12% on its year end value, at 31st March 2008.
Equity trading volumes were €40.4 billion in Q1. The average daily value of trading in equities during the quarter was €652 million. This was 13% lower than experienced during the same period last year.
However the daily average number of transactions done on the ISE in the quarter stood at 9,232. This was a 93% increase on the figure for same quarter a year ago [4,780 daily average no. of transactions].
The ISE’s trading platform - ISE Xetra - demonstrated its resilience and it seamlessly dealt with the extreme volatility and growth in transaction volumes over the quarter. Of the number of deals done in Q1 2008, 77% were executed on the ISE-Xetra electronic trading platform. The proportion of transactions done on the ISE as compared to other execution venues also strengthened, consolidating Dublin’s position as the dominant centre of liquidity for Irish equities.
Turnover in the Irish Government Bond market was buoyant and strongly ahead of 2007, rising 113% in the first quarter of 2008 to €15,303million, from €7,181million in the same period in 2007. American International Group Inc. was admitted to the Main Market of the Irish Stock Exchange on 6th March 2008.
The Irish Stock Exchange’s IEX market for growth companies marked its third anniversary during the quarter. In total, 30 companies are now listed on IEX and the capitalisation of the market has more than trebled to €3 billion since its launch. ISE is now firmly established as an attractive and important source of funding for Irish growth companies.
Commenting on the report, Deirdre Somers, Chief Executive of the Irish Stock Exchange, said: “This has been a challenging time for equity markets globally with extreme volatility going hand in hand with exceptional trading volumes. Both the internationally focussed and the domestic facing aspects of the Exchange’s business have been affected by the turbulent market conditions, however the ISE continues to attract new companies to the market and to offer a world class infrastructure to market participants. In particular we are delighted with the success of IEX since its launch.”
Global issuance volumes in the asset backed market are at a historical low and this is reflected in the volumes of new listings in Q1 2008. Although there was a 13% increase in the number of new programme issuers as compared to the same period last year, overall listing volumes were significantly below the same period in 2007. The most frequent issuers in Q1 2008 included Lehman Brothers, JP Morgan Chase, Citibank International and UBS AG.
A total of 109 new funds and sub-funds, issuing over 800 new securities, listed in the first quarter of 2008. Notable new listings include funds managed by Alliance Bernstein, Bank of Ireland, GLG and Lyxor.