The market lived up to all positive expectations in January. The Amsterdam EOE index broke through the 500-points barrier in just a couple of days, while turnover averaged around eight billion guilders daily during the first week of the new year. Share prices continued to climb steadily during the first half of the month. This was thanks to the same factors which determined the picture throughout 1995: falling interest rates and a firm dollar. In the second half of the month the AEX stayed hovering in the 500-510 points range, ending the month finally at 503.38 points, compared with 486.3 points at end-1995. Fokker's future dominated headlines.
Turnover levels
January turnover levels on the Amsterdam Exchanges NV were impressive and even reached new top levels. Total turnover in January amounted the record high of 187.2 billion guilders, versus 94.4 billion guilders in January 1995. This compares with 99.9 billion guilders last month. Last record high of total turnover was in November 1995: 140.3 billion guilders. Share turnover also peaked unprecedented: 54.9 billion guilders. Last record high also took place in November 1995: 42 billion guilders. Bond turnover amounted to 132.3 billion guilders, compared with 67.2 billion guilders in the year-earlier month and 65.6 billion guilders in December 1995.
Falling interest rates
Interest rates continued to trend downwards. The yield on the latest 10-year government bond, traditionally a good benchmark, even fell below six percent. On January 24 The Dutch central bank cut its rate on advances by 25 basis points to 4%. The prolongation rate has been pegged at four percent (since January 19).
Rising share prices
On January 3 champagne corks were popping on the trading floor to celebrate the Amsterdam-EOE index break through the 500 points barrier. At exactly 11 minutes to 11 the index briefly touched 500.21 points, having soared no less than 15 points (three percent) in two days. Share price trends revealed that local issues in particular clocked up the biggest gains (up five percent). Financials benefited less from the favourable stock market climate (plus 0.3 percent). Internationals climbed three percent while the CBS All Share index, the barometer for all listed stocks, put on just over four percent.
Major (individual) winners this month included copier maker Oce Van der Grinten which soared 18 percent on sharply higher full-year earnings figures, and electronics giant Philips, whose shares rallied to well over 60 guilders. Other winners included Wolters Kluwer (up eight percent) publisher VNU (+11 percent), trader Hagemeyer (+10 percent), brewer Heineken (+five percent) and personal care and household products concern Unilever (up six percent). Investors were apparently disappointed with KLM's third-quarter earnings figures, as shares in the carrier fell. The share price of Nutricia and Getronics have been continuously quoted in ASSET since the beginning of the year. Nutricia's wholesale threshold has been pegged at 2,500 shares, while Getronics' threshold has been set at 5,000 shares.
Fokker dominates the headlines
Planemaker Fokker hogged the headlines this month. The planemaker stood out not only with regard to its share price -- it was also one of the top scorers in terms of turnover. The stock, quoted on the Amsterdam Exchanges NV since June 25 1937, was relegated to the section 'stocks subject to listings measure' on January 24 following an application for court protection from creditors for large parts of the company. As a result it was decided to exclude Fokker from the Amsterdam Mad Cap Index effective January 29. Consequently the index will comprise just 24 stocks until its annual re-weighing on February 16. The fluctuations in Fokker shares lured many speculators into the market. The planemaker's future was put in the balance after parent company Daimler-Benz decided to withdraw financial support.
Issues
Bonds
08/01/96 NV Bank Nederlandse Gemeenten, 6 3/8% '96-06, NLG 2 billion
10/01/96 NV Bank Nederlandse Gemeenten, 6% '95-02, NLG 500 million
15/01/96 Nederlandse Waterschapsbank NV 6 1/4% '96-06, NLG 500 million
16/01/96 ING Verzekeringen NV 6 1/4% '95-05, NLG 250 million
18/01/96 Banco ABN AMRO SA 8 3/8% '95-96, US$ 75 million
25/01/96 NV Bank Nederlandse Gemeenten, 3 1/2% '96-01, Sw Frs 150 million
30/01/96 ABN AMRO Bank NV 14 3/4% '96-99, SA R 50 million
30/01/96 European Investment Bank 6% '96-06, NLG 2.5 billion
Shares
11/01/96 BE Semiconductor Industries NV, issue, NLG 19.1 million
11/01/96 Intereffekt Rente Groei II NV, NLG 181.3 million
For further information on the Amsterdam Exchanges NV, please contact: Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Beursplein 5, 1012 JW Amsterdam, Netherlands, Tel: + 31 20 5234014, Fax: + 31 20 5234950, or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
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