AMSTERDAM BOURSE CLIMBS TO NEW HIGH IN NOVEMBER WITH RECORD TURNOVER
The upbeat sentiment which characterized the Amsterdam Exchanges NV last month was due mainly to the firmer dollar and the downtrend in interest rates. In addition the upturn in sentiment on other exchanges, particularly Wall Street acted as a stimulus. As a result the Amsterdam EOE index was able to climb to an all-time record high of 478.11, no fewer than 25 points up on its October close. November was also a good month for turnover. Monthly turnovers reached new all-time-highs. The volume of issues amounted to some 2.5 billion guilders, with (convertible) bonds accounting for the lion's share.
New record turnover
Total stock exchange turnover (shares plus bonds) amounted to 140.0 billion guilders in November compared with 130.1 billion guilders in October. In November 1994, total turnover amounted to 86.5 billion guilders. Bond turnover amounted to 97.9 billion guilders, compared with 60.1 billion guilders in the year-earlier month. Share turnover amounted to 42.0 billion guilders. In October this was 41.9 billion guilders. This compares with share turnover of 26.5 billion guilders in November 1994. Cumulative turnover (January through November 1995) amounted to 1,261.2 billion guilders, 15 percent higher than the cumulative turnover through November 1994 (1,090 billion guilders).
Interest rates fall, share prices rise
The favourable market climate enabled half of the stocks traded through the Limit Order Book to climb to their highest price of the year. Attractive third-quarter profit figures were also a contributing factor. Viewed per sector this was true of all the financials: Aegon, ABN AMRO, Fortis Amev and ING Groep. Low interest rates traditionally boost the earnings of companies in this sector. Insurer Aegon's good quarterly results pulled up the other financials in its wake. As defensive stocks publishers too continued to perform well. VNU and Elsevier both attained their highest share price this year so far. Sector rival Wolters Kluwer was less fortunate, however. Its shares gave up 9.60 guilders to 140.90 towards the end of the month after it announced the takeover of U.S. publisher CCH Inc. Earlier the shares had put on 6.50 guilders in a single day. Royal Dutch Petroleum reached its highest price in 12 months, despite an initial fall in its share price on (disappointing) quarterly earnings figures. Shell's chemicals arm in particular is a source of worry. The same fate awaited chemicals concerns DSM and Akzo. Poor prices in the sector undermined the share price of both stocks. On the whole cyclicals lagged the market. Electronics giant Philips maintained its position as the turnover leader on the exchange again this month. The stock closed November at well above 60 guilders after its share price virtually collapsed in October.
National market
The Amsterdam MidCap Index rose 4 points to 556.36 in November. An important contributor to the gain was insurer Stad Rotterdam, which published excellent figures and good prospects. Nutricia was not so fortunate. The stock fell 3.30 guilders to 114 guilders on the surprise news 29 percent shareholder Unigate of the U.K. is to sell its stake.
Bond prices on the up
Due to the steady decline in interest rates -- the Dutch Central Bank cut both the rate on special advances (now 3.6 percent) and the secured loans rate (now 3.2 percent) -- bond prices again showed a significant increase. This brings the average increase since the beginning of this year to 16 percent. As a result yields last month fell to a year low. Overall yields declined from 7.54 at end-1994 to 5.79 (end-November)
International records
Like Amsterdam many foreign exchanges also closed the month significantly higher. Leading the pack once more was Wall Street, where the Dow Jones index breached the 5000 points barrier for the first time in its history. The rise proved unstoppable. Confidence in the US economy remained buoyant in November. Even the threatened bankruptcy of the US administration failed to dampen the upbeat sentiment. The main factors propelling the bull market -- the 4000 point threshold was taken earlier this year -- were sustained low interest rates and strong profit figures.
The FTSE 100, the London Stock Exchange barometer, also soared to a new record, although this was principally due to political factors. The U.K. government announced major tax cuts.
Only Paris lagged behind with a modest gain. The reason for this was the widespread strikes which have hit France.
Issues
Bonds
03/11/95 ABN AMRO Bank N.V., Argentina Branch, 9 3/4% '95-98, USD 30 million
03/11/95 Nutricia Nederland Beheermaatschappij BV 4 3/8% '95-02 (conv) 300 million guilders
09/11/95 Nutricia Nederland Beheermaatschappij BV 4 3/8% '95-02 (conv) 50 million guilders
15/11/95 ABN AMRO Australia Limited, 8 1/4% '95-00, AUS$100 million
15/11/95 NV Bank Nederlandsche Gemeenten, 5 1/2% '95II-99, 150 million guilders
17/11/95 General Electric Capital Corporation, 5 1/2% '95-00, 250 million guilders
21/11/95 Nederlandse Waterschapsbank NV 6 5/8%, '95-05, 300 million guilders
22/11/95 NV Bank Nederlandse Gemeenten, 6% '95-01, 500 million guilders
23/11/95 NV Bank Nederlandse Gemeenten, 5 5/8%, '95-00 DM 250 million
27/11/95 Dresdner Finance BV, 5 1/2% '95-00, 250 million
29/11/95 Koninklijke Nederlandsche Hoogovens en Staalfabrieken NV, 7% '95-02, 250 million guilders
Shares
22/11/95 Preferent Fonds NV, introduction through trading 264 million guilder
For more information, please contact: Thom Hoedemaker, Director of Communications, Amsterdam Exchanges NV, Tel: +31 20-523 4014, or Paddy Manning, St James Corporate Communications, Tel: +44 171 436 4101
The upbeat sentiment which characterized the Amsterdam Exchanges NV last month was due mainly to the firmer dollar and the downtrend in interest rates. In addition the upturn in sentiment on other exchanges, particularly Wall Street acted as a stimulus. As a result the Amsterdam EOE index was able to climb to an all-time record high of 478.11, no fewer than 25 points up on its October close. November was also a good month for turnover. Monthly turnovers reached new all-time-highs. The volume of issues amounted to some 2.5 billion guilders, with (convertible) bonds accounting for the lion's share.
New record turnover
Total stock exchange turnover (shares plus bonds) amounted to 140.0 billion guilders in November compared with 130.1 billion guilders in October. In November 1994, total turnover amounted to 86.5 billion guilders. Bond turnover amounted to 97.9 billion guilders, compared with 60.1 billion guilders in the year-earlier month. Share turnover amounted to 42.0 billion guilders. In October this was 41.9 billion guilders. This compares with share turnover of 26.5 billion guilders in November 1994. Cumulative turnover (January through November 1995) amounted to 1,261.2 billion guilders, 15 percent higher than the cumulative turnover through November 1994 (1,090 billion guilders).
Interest rates fall, share prices rise
The favourable market climate enabled half of the stocks traded through the Limit Order Book to climb to their highest price of the year. Attractive third-quarter profit figures were also a contributing factor. Viewed per sector this was true of all the financials: Aegon, ABN AMRO, Fortis Amev and ING Groep. Low interest rates traditionally boost the earnings of companies in this sector. Insurer Aegon's good quarterly results pulled up the other financials in its wake. As defensive stocks publishers too continued to perform well. VNU and Elsevier both attained their highest share price this year so far. Sector rival Wolters Kluwer was less fortunate, however. Its shares gave up 9.60 guilders to 140.90 towards the end of the month after it announced the takeover of U.S. publisher CCH Inc. Earlier the shares had put on 6.50 guilders in a single day. Royal Dutch Petroleum reached its highest price in 12 months, despite an initial fall in its share price on (disappointing) quarterly earnings figures. Shell's chemicals arm in particular is a source of worry. The same fate awaited chemicals concerns DSM and Akzo. Poor prices in the sector undermined the share price of both stocks. On the whole cyclicals lagged the market. Electronics giant Philips maintained its position as the turnover leader on the exchange again this month. The stock closed November at well above 60 guilders after its share price virtually collapsed in October.
National market
The Amsterdam MidCap Index rose 4 points to 556.36 in November. An important contributor to the gain was insurer Stad Rotterdam, which published excellent figures and good prospects. Nutricia was not so fortunate. The stock fell 3.30 guilders to 114 guilders on the surprise news 29 percent shareholder Unigate of the U.K. is to sell its stake.
Bond prices on the up
Due to the steady decline in interest rates -- the Dutch Central Bank cut both the rate on special advances (now 3.6 percent) and the secured loans rate (now 3.2 percent) -- bond prices again showed a significant increase. This brings the average increase since the beginning of this year to 16 percent. As a result yields last month fell to a year low. Overall yields declined from 7.54 at end-1994 to 5.79 (end-November)
International records
Like Amsterdam many foreign exchanges also closed the month significantly higher. Leading the pack once more was Wall Street, where the Dow Jones index breached the 5000 points barrier for the first time in its history. The rise proved unstoppable. Confidence in the US economy remained buoyant in November. Even the threatened bankruptcy of the US administration failed to dampen the upbeat sentiment. The main factors propelling the bull market -- the 4000 point threshold was taken earlier this year -- were sustained low interest rates and strong profit figures.
The FTSE 100, the London Stock Exchange barometer, also soared to a new record, although this was principally due to political factors. The U.K. government announced major tax cuts.
Only Paris lagged behind with a modest gain. The reason for this was the widespread strikes which have hit France.
31-10-95 30-11-95 % change
Amsterdam (AEX) 453.56 478.11 + 5.5
New York (DJI) 4766.68 5074.49 + 6.5
London (FTSE) 3518.70 3662.60 + 4.1
Frankfurt (DAX30) 2163.22 2253.51 + 4.3
Paris (CAC-40) 1795.34 1831.79 + 2.0
Issues
Bonds
03/11/95 ABN AMRO Bank N.V., Argentina Branch, 9 3/4% '95-98, USD 30 million
03/11/95 Nutricia Nederland Beheermaatschappij BV 4 3/8% '95-02 (conv) 300 million guilders
09/11/95 Nutricia Nederland Beheermaatschappij BV 4 3/8% '95-02 (conv) 50 million guilders
15/11/95 ABN AMRO Australia Limited, 8 1/4% '95-00, AUS$100 million
15/11/95 NV Bank Nederlandsche Gemeenten, 5 1/2% '95II-99, 150 million guilders
17/11/95 General Electric Capital Corporation, 5 1/2% '95-00, 250 million guilders
21/11/95 Nederlandse Waterschapsbank NV 6 5/8%, '95-05, 300 million guilders
22/11/95 NV Bank Nederlandse Gemeenten, 6% '95-01, 500 million guilders
23/11/95 NV Bank Nederlandse Gemeenten, 5 5/8%, '95-00 DM 250 million
27/11/95 Dresdner Finance BV, 5 1/2% '95-00, 250 million
29/11/95 Koninklijke Nederlandsche Hoogovens en Staalfabrieken NV, 7% '95-02, 250 million guilders
Shares
22/11/95 Preferent Fonds NV, introduction through trading 264 million guilder
For more information, please contact: Thom Hoedemaker, Director of Communications, Amsterdam Exchanges NV, Tel: +31 20-523 4014, or Paddy Manning, St James Corporate Communications, Tel: +44 171 436 4101
