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The Bermuda Stock Exchange (BSX) reported that 2006 will be marked by the increase of interest in the Exchange created by two important recognitions which were received in 2005. In the second half of 2005 the BSX was granted both Approved Stock Exchange status by the Australian tax authority and designation from the UK’s Financial Services Authority.
The two designations coupled with the strong international BSX brand and the recent consolidation activity in the global stock exchange industry has resulted in a heightened level of interest in BSX products and the Exchange itself.
The BSX/RG Composite Index ended the year at 4,860.32, up 25.1% compared with 2005. Domestic trading volumes increased from 2.9 million shares to 3.9 million shares with a corresponding value of over $120 million, one of the highest value turnover levels in the Exchange’s history.
The total market capitalization of the BSX as at 31 December 2005 (excluding fund listings) stood at over $350 billion of which approximately $2.6 billion represented the domestic market.
As at 31 December 2006, 428 issuers were listed on the BSX. Included in the new listings in 2005 were Jupiter Adria Limited, an international equity issue and 3 international derivative warrant issues. There were also 22 new collective investment vehicles listed and 49 subsequent issues processed during the year, including the local BAS and BF&M Rights issues.
In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski noted, “2006 has been a very exciting year for the BSX in terms of its strategic development. The receipt of the recognitions noted above has generated interest in the Exchange and further punctuated its role as the premier, fully operational offshore stock exchange. The BSX’s longevity in this business, its electronic infrastructure, its prudent regulatory approach and strong brand will position it well to take advantage of the exciting opportunities that are now presenting themselves in the quickly changing global stock exchange industry.”
In closing Mr. Wojciechowski noted: “We enthusiastically look forward to 2007 with a renewed commitment to the continued development of the domestic capital market. A tremendous amount of work has gone into modernizing the Bermuda Stock Exchange to ensure the increased flow of corporate information into the market, equal and fair access to the trading mechanism by all users and that the safeguards investors come to expect in modern regulated markets exist here at home.
The BSX team feels strongly that this critical groundwork forms the foundation that supports a healthy domestic capital market, which in turn leads to the launch of new investment products. These products, whether in the form of equity participation in public companies, collective investment scheme structures, debt financing by either public companies or the Government, for example, will give Bermudians broader investment opportunities and provide them with the ability to fully participate in the success of the Bermudian economy through the capital market.
The Exchange looks forward to meeting with stakeholders and policymakers in the upcoming year to assist in the creation of new opportunities for Bermudian investors, as we feel that the performance of the domestic market over the years clearly tells a compelling story which shouldn’t be overlooked. Records maintained by the BSX show that the local market has outperformed cash deposits in terms of total return since its inception in 1971, has outperformed cash deposits in every rolling 10 calendar year period since 1971, has outperformed both the S&P 500 and MSCI World ex USA Indexes over the same period and the BSX continues to experience an increase in trading activity in real terms. ”
