Share prices on the Amsterdam Exchanges NV fluctuated strongly during September. In the first half of the month prices were on an uptrend, but this was later followed by a correction. Nevertheless the Amsterdam-EOE index ended the month up 1.5% at 466.26 points (end-August: 458.26).
September price trends were largely influenced by foreign factors. In the first half of the month U.S. share prices were buoyant, powering the Dow Jones industrials index to an all-time record high of over 4,800 points in mid-month. But later in the month this was followed by a strong decline, due inter alia to concern about economic trends and rising interest rates. At the end of the month the DJI ended close to 4800.
The dollar also exerted a strong influence on the stock exchanges. Initially the U.S. currency gained strongly to over 1.67 guilders, partly thanks to support buying by Japan. But towards the end of the month the dollar was forced to give up ground, partly due to profit taking. The European debate on the future of full monetary union also had a negative impact on the dollar price.
Other foreign exchanges also performed reasonably well during the first half of September. Both London and Frankfurt posted new records mid-month before subsequently giving up some ground.
The Amsterdam bourse was also well supported by developments on the interest rate front in early September. Short-term interest rates remained under pressure, while capital market rates continued to fall. The average return on government bonds fell to just over six percent before the bond market underwent a hefty correction. This correction was mainly due to the fall in the U.S. and German bond markets. The publication of the Dutch state budget failed to have any discernible effect on market sentiment.
The Amsterdam bourse got the month off to a flying start. Prices rose strongly, leading the Amsterdam-EOE index to climb to a new historic intraday high of 476.76 points on 20 September. But this was flying too high, for as soon as factors such as the falling dollar, lower bond prices and the Wall Street correction came into play the index fell more than 10 points in a couple of days.
Measured by the performance of the sub-indices, internationals slightly lagged the bourse average, while financials outperformed the index.
The number of Limit Order Book shares was increased by the addition of Randstad Holding, timed to coincide with the company's two-for-one stock split. These two factors proved attractive to investors, for the share price rose sharply on high turnover volumes. The share price of Koninklijke PTT Nederland (KPN) was pressured by the announcement of its half-year earnings figures which were on the low side of analysts' expectations, while details about the flotation of shares by the state also had a negative impact. The flotation of the second KPN tranche by the state will cut the government's shareholding to less than 50 percent. Another stock in demand was publisher VNU. Its share price rose strongly, mainly reflecting its attractive six-month earnings figures. Also in the spotlight was Fokker, which submitted a survival plan to the government. The aerospace group needs a sum of 2.3 billion guilders to survive. The first-half figures published by retail and services group Vendex for the first time led to a sharp increase in its share price.
Moulds maker Axxicon was floated on the local market. The shares were in great demand and the number on offer was extremely limited. As a result the share price rose sharply: the stock was first quoted at 30 guilders on a subscription price of 19 guilders. The Axxicon shares subsequently gave up several guilders, but are still quoted far higher than their issue price. In addition Heidemij, which has been traded on Nasdaq in the U.S. since 1993, announced it will be introduced on the Amsterdam Exchanges NV in October.
Otherwise the local market was relatively quiet aside from the publications of a number of half-year results. Construction firm Heidemij's figures far out performed expectations and consequently its share price surged. KBB was confronted by somewhat disappointing consumer spending figures, which were reflected in lower earnings figures and a fall in its share price. Shipyard Van der Giessen-de Noord was able to reap the benefits of an announcement it had won a new order to build a ferry.
Issues
Bonds
05/09/95 N.V. Bank Nederlandse Gemeenten, 6 1/4%'95-00, dm 500 million 05/09/95 N.V. Bank Nederlandse Gemeenten, 6%'95-00, NLG 500 million 07/09/95 N.V. Bank Nederlandse Gemeenten, 0%'95-15, NLG 500 million 13/09/95 Toyota Motor Credit Corporation, 6%'95-00, NLG 250 million 14/09/95 Staat der Nederlanden, 7%'95-05, NLG 2,1 billion 18/09/95 ABN AMRO Bank N.V., 3 1/4%'95-00,NLG 200 million 20/09/95 Sudwestdeutsche Landesbank Capital Markets Plc., 6 3/8%'95-01, NLG200 million 26/09/95 Autobahnen- und Schnellstrassen-Finanzierungs-Aktienges- ellschaft, 6 3/4%'95-05, NLG300 million 27/09/95 N.V. Bank Nederlandse Gemeenten, 4 1/2%'95-01, Zw.frs.150 million 28/09/95 Dresdner Bank Aktiengesellschaft, 7 1/4%'95-05, NLG250 millionShares
18/09/95 AXXICON Group N.V., introduction, NLG48,7
