Unless otherwise stated, the following commentary refers to the 11 months ended 28 February 2009 and, where appropriate, to the corresponding period last year. Figures for Borsa Italiana refer to the same time periods although the business has only been part of London Stock Exchange Group plc since 1 October 2007.
London Stock Exchange Group plc (“the Exchange”) today issued a routine update ahead of the close period relating to the financial year ending 31 March 2009.
In summary:
Issuer Services
In Issuer Services total money raised across our markets rose 86% to a record £84bn, a strong increase in capital raising through further issues on our market
However, activity levels for new issues reflect the difficult market environment, particularly since the half year. Nevertheless, there have been 149 new issues in London and 8 in Italy in the year to date
Trading Services
Average daily number of SETS trades increased 17 per cent to 735,000, while average daily value traded at £7.1bn per day declined 21 per cent, in line with the average fall in the FTSE 100; trading at Borsa Italiana was down 12 per cent to 253,000 trades per day
Equity trading in the five months to end February reflects the deterioration in the market since October, with average daily value traded on SETS down 40 per cent at £5.6bn compared to a 32 per cent fall in the average value of the FTSE 100; average daily volume traded in London was up 2 per cent to 730,000 and in Italy it declined 17 per cent to 242,000 trades per day
Derivatives volumes increased 12 per cent year to date to a record level of 88 million contracts, with EDX recording a 24 per cent increase driven by very strong trading in Russian derivatives. Fixed income markets remain mixed with MOT trades up 20 per cent, while MTS notional value traded decreased 10 per centInformation Services
Demand for professional terminals receiving LSE real time data remained strong, given the market environment, at 107,000, representing a modest decrease of 3,500 over last year and down 4,000 since the end of third quarter; professional users of Borsa Italiana data were down 4,500 to 153,500, a reduction of 2,000 since Q3
Post Trade Services
While market volumes have been weaker, open interest in the derivatives market remained strong at 4.5m contracts, up by 1 million contracts on last year and the level of margin held has remained high in continuing volatile markets.
Commenting on current trading and outlook, Clara Furse, Chief Executive, said:
“Trading volumes on SETS have increased over the year to date, but value traded has fallen, particularly in the second half of the year, reflecting a sharp reduction in the value of the FTSE 100 as all trading venues experience very difficult market conditions. However, our markets remain open for business, robust, well regulated and ever more vital to economic recovery. Our Issuer Services division saw a record £84 billion raised by companies mainly seeking further equity capital. And our Post Trade services continue to work very well in uncertain markets.
“We have produced a resilient overall performance and benefit from a sound financial position. We continue to trade in line with the Board’s expectations for the full year.”
The Exchange will announce its Preliminary results for the financial year ending 31 March 2009 on 20 May 2009.
For a full account of the figures referred to above click here.
