Most important event of 1994: successful overhaul of the trading system
Six months on Trading System Amsterdam is found to be functioning well, with beneficial effects on ASE's international competitive position
Second phase set in motion: clearing & settlement. Secure competitive systems (fully locked-in trade)
Market share won from SEAQ-International
KPN admission to listing most important market introduction in years
Climate for new issues takes turn for the better
Deregulation of securities markets heralds new phase in ASE's long history. Aim to bolster self regulating function and to gain status as competent authority within the framework of the new act on the supervision of securities trading Wte.
Renewed focus on the tax regime for investors in view of internationalisation. Regime of the one off advance levy on dividends
Trading System Amsterdam
Spreads smaller than in other comparable systems
Hoekman's performance excellent. Manages assigned stock like a real market maker
Price formation takes place in Amsterdam
System as huge capacity, as borne out by a single trading day in mid March when turnover in Royal Dutch Petroleum amounted to two million shares
Securities houses maintain firm quotes in ASSET;
Amsterdam's international market share in major issues (such as Akzo, Royal Dutch Petroleum, Philips Electronics, KLM, Hoogovens and Unilever) increasing;
Reduction of commission fees in non government bond segment;
Technological refinements of the system (Overhaul Technological Infrastructure). A new phase which encompasses technological refinement through introduction of windowing techniques etc.
AIDA tariffs cut by 50%, thanks to unexpectedly high transaction volumes
The number of limit order book transactions also significantly exceeds expectations. Tariffs to be cut by 30% effective July 1
Publication of indicative prices from April 7;
Introduction of T+3 effective June 1.
Trade Technical Data
New turnover record: NFL1,160 bn, due to a 25% increase in share turnover;
Bourse capitalisation reached a new record of NFL491 bn, partly reflecting the bourse launch of Koninklijke PTT Nederland on June 13;
The 1994 trading year was marked by an unexpected rise in interest rates during the first half, bringing to an abrupt halt the upward trend in share prices;
Capital market interest rates rose by almost two percentage points to 7.7%;
Price levels remained virtually unchanged. The average price gains of 40% achieved in 1993 remained intact. As such the Netherlands compared well internationally. The AEX index reached its highest point of 438.7 at end January;
The CBS AllShare, the long-term index, slipped 1.0%. Internationals gave up 3.7%. Hardest hit in 1994, however, were the financials. The subindices for banks & other financial services and insurance institutions fell sharply by 12.7% and 7.9% respectively. The transport, storage, communications and capital goods sectors achieved price gains of around 20%;
The Amsterdam Exchanges NV is Europe's fourth largest bourse after Germany, France and the UK in terms of market capitalisation, with NFL491 bn.
Top Ten Performers
In contrast to 1993, the top performers on the share market were without exception local issues;
Giessen-De Noord booked a gain of 116.3%, Automobiel Industrie Rotterdam put on 89.7%, while hoekman firm AOT advanced 82.3%, Van Melle 69.8%, Simac 62.4%, Klene 60.6%, Randstad 60.5%, Beers 59.7%, Ordina 51.6% and Holland Colours 51.1%.
Primary Market
1994 was a particularly good year for issues. The issuing volume ( = total of new paper admitted to listing) on the share market amounted to NFL60.0 bn (excluding KPN's total amount of NFL39 bn admitted to listing) a clear increase on the NFL26.2 bn of 1993. In 1994 21 (1993:14) new issuing institutions were introduced. As in previous years, investment funds accounted for a significant share (16) of share introductions.
Of the new stocks admitted to listing last year, the bourse launch of KPN on June 13 stole the show. The first tranche raised NFL7 bn. Other newcomers included Ballast Nedam, Ceteco, Smit Transformatoren and EVC
Special Section: "Defamilisation" Of Share Ownership
Going public is still largely an underestimated option for medium-sized family-owned firms facing strategic choices with respect to continuity. Even so, indications are that traditionally cautious attitudes are gradually tending more in favour of a stock exchange listing. This year's annual report includes a challenging discussion of this topical issue. "Defamilisation" is an informal term referring to the bourse launch of family-owned companies.
Family-owned firms gaining a stock exchange listing this year include Vendex and Van Leer. Software house Baan was admitted to listing on May 23.
International Comparison
The Amsterdam Exchanges NV scored relatively well in the international arena with virtually unchanged price levels over 1994. Only the bourses in Scandinavia, Portugal, Italy, the US and Japan were able to report modest gains.
International Share Turnover
Measured in constant dollars, Amsterdam share turnover rose 24.7%. Among the larger bourses it was only outperformed by Milan (up 83.7%, system adjustment). The biggest gain was reported by the tiny Athens bourse (+98%). Five stock exchanges reported a fall in turnover: Luxembourg, Oslo, Zurich, Tokyo and Singapore. Luxembourg registered the biggest turnover decline (14.7%).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information on the Amsterdam Exchanges NV please contact Joost Maas on +31 20.5234567 or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
Six months on Trading System Amsterdam is found to be functioning well, with beneficial effects on ASE's international competitive position
Second phase set in motion: clearing & settlement. Secure competitive systems (fully locked-in trade)
Market share won from SEAQ-International
KPN admission to listing most important market introduction in years
Climate for new issues takes turn for the better
Deregulation of securities markets heralds new phase in ASE's long history. Aim to bolster self regulating function and to gain status as competent authority within the framework of the new act on the supervision of securities trading Wte.
Renewed focus on the tax regime for investors in view of internationalisation. Regime of the one off advance levy on dividends
Trading System Amsterdam
Spreads smaller than in other comparable systems
Hoekman's performance excellent. Manages assigned stock like a real market maker
Price formation takes place in Amsterdam
System as huge capacity, as borne out by a single trading day in mid March when turnover in Royal Dutch Petroleum amounted to two million shares
Securities houses maintain firm quotes in ASSET;
Amsterdam's international market share in major issues (such as Akzo, Royal Dutch Petroleum, Philips Electronics, KLM, Hoogovens and Unilever) increasing;
Reduction of commission fees in non government bond segment;
Technological refinements of the system (Overhaul Technological Infrastructure). A new phase which encompasses technological refinement through introduction of windowing techniques etc.
AIDA tariffs cut by 50%, thanks to unexpectedly high transaction volumes
The number of limit order book transactions also significantly exceeds expectations. Tariffs to be cut by 30% effective July 1
Publication of indicative prices from April 7;
Introduction of T+3 effective June 1.
Trade Technical Data
New turnover record: NFL1,160 bn, due to a 25% increase in share turnover;
Bourse capitalisation reached a new record of NFL491 bn, partly reflecting the bourse launch of Koninklijke PTT Nederland on June 13;
The 1994 trading year was marked by an unexpected rise in interest rates during the first half, bringing to an abrupt halt the upward trend in share prices;
Capital market interest rates rose by almost two percentage points to 7.7%;
Price levels remained virtually unchanged. The average price gains of 40% achieved in 1993 remained intact. As such the Netherlands compared well internationally. The AEX index reached its highest point of 438.7 at end January;
The CBS AllShare, the long-term index, slipped 1.0%. Internationals gave up 3.7%. Hardest hit in 1994, however, were the financials. The subindices for banks & other financial services and insurance institutions fell sharply by 12.7% and 7.9% respectively. The transport, storage, communications and capital goods sectors achieved price gains of around 20%;
The Amsterdam Exchanges NV is Europe's fourth largest bourse after Germany, France and the UK in terms of market capitalisation, with NFL491 bn.
Top Ten Performers
In contrast to 1993, the top performers on the share market were without exception local issues;
Giessen-De Noord booked a gain of 116.3%, Automobiel Industrie Rotterdam put on 89.7%, while hoekman firm AOT advanced 82.3%, Van Melle 69.8%, Simac 62.4%, Klene 60.6%, Randstad 60.5%, Beers 59.7%, Ordina 51.6% and Holland Colours 51.1%.
Primary Market
1994 was a particularly good year for issues. The issuing volume ( = total of new paper admitted to listing) on the share market amounted to NFL60.0 bn (excluding KPN's total amount of NFL39 bn admitted to listing) a clear increase on the NFL26.2 bn of 1993. In 1994 21 (1993:14) new issuing institutions were introduced. As in previous years, investment funds accounted for a significant share (16) of share introductions.
Of the new stocks admitted to listing last year, the bourse launch of KPN on June 13 stole the show. The first tranche raised NFL7 bn. Other newcomers included Ballast Nedam, Ceteco, Smit Transformatoren and EVC
Special Section: "Defamilisation" Of Share Ownership
Going public is still largely an underestimated option for medium-sized family-owned firms facing strategic choices with respect to continuity. Even so, indications are that traditionally cautious attitudes are gradually tending more in favour of a stock exchange listing. This year's annual report includes a challenging discussion of this topical issue. "Defamilisation" is an informal term referring to the bourse launch of family-owned companies.
Family-owned firms gaining a stock exchange listing this year include Vendex and Van Leer. Software house Baan was admitted to listing on May 23.
International Comparison
The Amsterdam Exchanges NV scored relatively well in the international arena with virtually unchanged price levels over 1994. Only the bourses in Scandinavia, Portugal, Italy, the US and Japan were able to report modest gains.
International Share Turnover
Measured in constant dollars, Amsterdam share turnover rose 24.7%. Among the larger bourses it was only outperformed by Milan (up 83.7%, system adjustment). The biggest gain was reported by the tiny Athens bourse (+98%). Five stock exchanges reported a fall in turnover: Luxembourg, Oslo, Zurich, Tokyo and Singapore. Luxembourg registered the biggest turnover decline (14.7%).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information on the Amsterdam Exchanges NV please contact Joost Maas on +31 20.5234567 or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
