More than £9.6 billion (USD 16.2 billion) in market capitalisation was wiped off the FTSE/Mondo Visione Exchanges Index1 in September as international markets hit crisis point.
The Index, which aims to reflect market sentiment and is a key indicator of exchanges’ performance, was down in Q3 2008 by 18.8 per cent, the third straight quarter fall which officially puts the listed exchanges sector into recession conditions.
Herbie Skeete, Managing Director of Mondo Visione and co-founder of the Index said:
“Despite soaring volumes in September, it was a brutal month for listed exchanges. The credit crunch has wiped out investment banking as a standalone business and hedge funds, a big volume spinner for exchanges, have had their short selling strategies curbed.
Consolidation of exchanges and increased technological deployments has helped exchanges perform more efficiently. However, volumes in most asset classes may decline in coming months as markets react to recent changes in the financial markets. This, coupled with a slowdown in the number of IPOs suggests more downside for listed exchanges, at least in the short term.”
The Index decreased by 8.4 per cent in September, closing at 21911.77 on 30 September 2008, down from 23919.07 on 29 August 2008. Year to date, the Index has decreased by 54.5 per cent.
The FTSE/Mondo Visione Exchanges Index best performer by capital returns in US dollars, was CME Group Inc. with a 10.8 per cent increase in the share price from August 29 to September 30, 2008.
The FTSE/Mondo Visione Exchanges Index worst performer by capital returns in US dollars, was Brazil’s BM&F Bovespa SA with a 42.1 per cent decrease in the share price from August 29 to September 30, 2008.
1The FTSE/Mondo Visione Exchanges Index is compiled by FTSE Group from data based on the share price performance of listed exchanges and trading platforms.
FTSE/ Mondo Visione Exchanges Index Monthly Analysis – September 2008
