The federation of European stock exchanges reported share turnover in Amsterdam over the first seven months of 1995 was up some 15 percent (in ECU) year on year. This compares with a 21 percent decline on the German bourse over the same period. Share turnover levels also fell on the London stock exchange (-/-8%), on the Swiss exchanges (-/- 8%), in Madrid (-/-21%) and in Italy (-/-48%).
Amsterdam also performed well in terms of bond turnover, with the EU federation of stock exchanges reporting a growth of 2.5 percent over the first seven months of this year compared with a decline of almost 10 percent in London bond turnover. As such Amsterdam was ranked third behind the German (+8%) and Swiss (+25%) exchanges.
Price trends were extremely changeable in August. While the Amsterdam EOE index booked a number of new records during the month, it was unable to maintain the confident uptrend of July. On the one hand market sentiment was boosted by the long-expected cuts in official interest rates and the strengthening dollar. But this was offset by over-optimistic expectations regarding many companies' first-half figures and a dip in the U.S. bourse barometer, the Dow Jones index. The Amsterdam EOE index ended the month virtually unchanged at 458.26 (end-July 458.13). On the bond market, foreign demand declined and yields on most paper fell.
August turnover up
Total bourse turnover (shares and bonds) rose to NLG 99.5 bn in August from NLG 88.8 bn in July and NLG 83.1 bn in the year-earlier month. Bond turnover amounted to NLG 66.5 bn, compared with NLG 50.2 bn in July. In August 1994, bond turnover amounted to NLG 58.9 bn. Share turnover fell to NLG 32.7 bn from NLG 37.9 bn in July. In August 1994, share turnover totalled NLG 24.1 bn. Cumulative turnover over the period January through August 1995 amounted to NLG 873.9 bn, a four percent increase on the year- earlier period to end-August, when cumulative turnover amounted to NLG 847.8 bn.
Bundesbank and DNB rate cuts
The financial markets heaved a sigh of relief at the Bundesbank decision to cut official interest rates for the first time since March, trimming the German repo rate by 0.5 percent. Economists welcomed the move, seeing the rate cut as imparting fresh impetus for a slowing economy and as a boost to the dollar. Dutch central bank DNB followed the German lead, cutting its official secured loans rate by 0.25 percent to 3.5 percent. The Stock Exchange Association followed suit by cutting the continuation rate by a quarter percent to 4.75 percent.
First-half figures
As usual many companies published their 1995 first-half figures in August. Cyclicals, in particular, profited from the upturn in the economy, with Hoogovens, chemicals concern DSM and paper maker KNP BT publishing strong profit figures. Pakhoed and Van Ommeren also reported strong profit growth. But other cyclicals among the multinationals were plagued by the weak dollar over the first half, with Unilever's earnings performance in the first half failing to match up to expectations.
Akzo's first-half earnings figures were seen as disappointing and the performance of Royal Dutch Petroleum also failed to live up to expectations. Furthermore Royal Dutch is expecting a fall in earnings over the rest of the year. Nor were Dutch national carrier KLM's figures well-received by the market; the airline's operating profit fell to NLG 164 mln from NLG 211 mln in the year-earlier period.
The publication of aerospace group Fokker's first-half figures threw the market into turmoil. The plane maker's record first-half loss of NLG 651 mln prompted the Council of the Amsterdam Exchanges NV to request a statement on Fokker's capital position. The bourse has given Fokker until October 1 to clarify its equity position.
Better-than-expected figures from financials ING and ABN Amro was reflected in an increase in their respective share prices. AEGON's results were in line with expectations and its share price slipped on the news.
Publishers Wolters Kluwer and VNU were particularly in demand as a result of their first- half performance.
Local issues
Smaller bourse-listed companies published better figures on the whole than their most actively traded counterparts. This may be partly explained by the lesser impact of exchange rate movements. Bourse newcomers Baan and EVC both reported good profit growth and were rewarded by a surge in their respective share prices. Other stocks turning in a good performance included Aalberts, Norit, Ahrend and trading concerns Otra and Geveke. The bourses announced the introduction of an index for medium-sized companies. The so- called Amsterdam Midkap-index is made up of 25 stocks and will be launched on October 4. Worth noting is the inclusion of Randstad in this index. From September 18 this stock will be traded via the Limit Order Book, the most active segment of the market.
In addition several local issues were involved in takeovers. Trading concern Hagemeyer announced it planned to mount a bid on September 1 for sector rival Borsumij-Wehry together with its subsidiaries Stokvis Union and Ehco-KLM Kleding. Pie Medical was also the subject of takeover speculation. The Limburg-based company, which specialises in the manufacture of high-precision medical instruments, is being eyed by Philips which sees possibilities for its successful incorporation into Philips medical division.
Finally there were some stocks which fell from favour. Of these, engineering consultancy Fugro saw its share price fall following a renewed downgrade of its earnings forecast. Kas Associatie also dipped after reporting lower first-half profits.
Bond market
Bond traders reported little foreign demand. Foreign investors regard the Netherlands as too expensive due to the strong guilder. However, domestic demand was high. Turnover was low in terms of trades, but qualitatively high due to the limited amount of mutual trading between brokerages. Yields fell from 6,57 percent to 6.41 percent.
International stock exchanges
Most of the leading international stock exchanges marked time during August, with the exception of New York. Towards the end of the month the French exchange was hit by the dismissal of minister Madelin. This was reflected in a 2.5 percent fall in the CAC index. As a result the index closed the month more or less unchanged.
For further information please contact Enquiries: H.S. de Ranitz, Amsterdam Exchanges NV. Tel: Amsterdam (00 31 20) - 523 4014 or Paddy Manning, St. James Corporate Communications: tel: +44 171 436 4101 or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
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.
Amsterdam also performed well in terms of bond turnover, with the EU federation of stock exchanges reporting a growth of 2.5 percent over the first seven months of this year compared with a decline of almost 10 percent in London bond turnover. As such Amsterdam was ranked third behind the German (+8%) and Swiss (+25%) exchanges.
Price trends were extremely changeable in August. While the Amsterdam EOE index booked a number of new records during the month, it was unable to maintain the confident uptrend of July. On the one hand market sentiment was boosted by the long-expected cuts in official interest rates and the strengthening dollar. But this was offset by over-optimistic expectations regarding many companies' first-half figures and a dip in the U.S. bourse barometer, the Dow Jones index. The Amsterdam EOE index ended the month virtually unchanged at 458.26 (end-July 458.13). On the bond market, foreign demand declined and yields on most paper fell.
August turnover up
Total bourse turnover (shares and bonds) rose to NLG 99.5 bn in August from NLG 88.8 bn in July and NLG 83.1 bn in the year-earlier month. Bond turnover amounted to NLG 66.5 bn, compared with NLG 50.2 bn in July. In August 1994, bond turnover amounted to NLG 58.9 bn. Share turnover fell to NLG 32.7 bn from NLG 37.9 bn in July. In August 1994, share turnover totalled NLG 24.1 bn. Cumulative turnover over the period January through August 1995 amounted to NLG 873.9 bn, a four percent increase on the year- earlier period to end-August, when cumulative turnover amounted to NLG 847.8 bn.
Bundesbank and DNB rate cuts
The financial markets heaved a sigh of relief at the Bundesbank decision to cut official interest rates for the first time since March, trimming the German repo rate by 0.5 percent. Economists welcomed the move, seeing the rate cut as imparting fresh impetus for a slowing economy and as a boost to the dollar. Dutch central bank DNB followed the German lead, cutting its official secured loans rate by 0.25 percent to 3.5 percent. The Stock Exchange Association followed suit by cutting the continuation rate by a quarter percent to 4.75 percent.
First-half figures
As usual many companies published their 1995 first-half figures in August. Cyclicals, in particular, profited from the upturn in the economy, with Hoogovens, chemicals concern DSM and paper maker KNP BT publishing strong profit figures. Pakhoed and Van Ommeren also reported strong profit growth. But other cyclicals among the multinationals were plagued by the weak dollar over the first half, with Unilever's earnings performance in the first half failing to match up to expectations.
Akzo's first-half earnings figures were seen as disappointing and the performance of Royal Dutch Petroleum also failed to live up to expectations. Furthermore Royal Dutch is expecting a fall in earnings over the rest of the year. Nor were Dutch national carrier KLM's figures well-received by the market; the airline's operating profit fell to NLG 164 mln from NLG 211 mln in the year-earlier period.
The publication of aerospace group Fokker's first-half figures threw the market into turmoil. The plane maker's record first-half loss of NLG 651 mln prompted the Council of the Amsterdam Exchanges NV to request a statement on Fokker's capital position. The bourse has given Fokker until October 1 to clarify its equity position.
Better-than-expected figures from financials ING and ABN Amro was reflected in an increase in their respective share prices. AEGON's results were in line with expectations and its share price slipped on the news.
Publishers Wolters Kluwer and VNU were particularly in demand as a result of their first- half performance.
Local issues
Smaller bourse-listed companies published better figures on the whole than their most actively traded counterparts. This may be partly explained by the lesser impact of exchange rate movements. Bourse newcomers Baan and EVC both reported good profit growth and were rewarded by a surge in their respective share prices. Other stocks turning in a good performance included Aalberts, Norit, Ahrend and trading concerns Otra and Geveke. The bourses announced the introduction of an index for medium-sized companies. The so- called Amsterdam Midkap-index is made up of 25 stocks and will be launched on October 4. Worth noting is the inclusion of Randstad in this index. From September 18 this stock will be traded via the Limit Order Book, the most active segment of the market.
In addition several local issues were involved in takeovers. Trading concern Hagemeyer announced it planned to mount a bid on September 1 for sector rival Borsumij-Wehry together with its subsidiaries Stokvis Union and Ehco-KLM Kleding. Pie Medical was also the subject of takeover speculation. The Limburg-based company, which specialises in the manufacture of high-precision medical instruments, is being eyed by Philips which sees possibilities for its successful incorporation into Philips medical division.
Finally there were some stocks which fell from favour. Of these, engineering consultancy Fugro saw its share price fall following a renewed downgrade of its earnings forecast. Kas Associatie also dipped after reporting lower first-half profits.
Bond market
Bond traders reported little foreign demand. Foreign investors regard the Netherlands as too expensive due to the strong guilder. However, domestic demand was high. Turnover was low in terms of trades, but qualitatively high due to the limited amount of mutual trading between brokerages. Yields fell from 6,57 percent to 6.41 percent.
International stock exchanges
Most of the leading international stock exchanges marked time during August, with the exception of New York. Towards the end of the month the French exchange was hit by the dismissal of minister Madelin. This was reflected in a 2.5 percent fall in the CAC index. As a result the index closed the month more or less unchanged.
31-7-95 31-8-95 % change from end-August Amsterdam AEX 458.13 458.26 0.0 New York DJI 4708.47 4604.57 -/-2.1 London FTSE 100 3463.30 3504.00 1.0 Frankfurt DAX30 2218.74 2240.07 1.0 Paris CAC40 1920.04 1921.43 0.0 Issues Bonds 01/08/95 ABN Amro Bank NV, Chicago Branch, 7 1/4% '95-05, US$ 1 mln 01/08/95 JP Morgan & Co. Inc 6% '95-00, NLG 250 mln 11/08/95 NV Bank Nederlandse Gemeenten, 7 1/4% '95-10, NLG 500 mln 11/08/95 Ford Motor Credit Company, 6 3/8% '95-00, NLG 200 mln 14/08/95 Bayerische Hypotheken- und Wechsel-Bank Aktiengesellschaft, 6% '95-99, NLG 250 mln 21/08/95 Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., 6 3/8% '95-01, NLG 350 mln 29/08/95 NV Bank Nederlandse Gemeenten, 4 5/8% '95-00, Swiss Fr150 mln 30/08/95 Banco ABN Amro S.A./ABN Amro Arrendamento Mercantil S.A.,9 3/4% '95-97, US$80 mln 30/08/95 Bayerische Landesbank Girozentrale, 6 1/4% '95-00, NLG 250 mln 31/08/95 Internationale Nederlanden Verzekeringen NV, 7% "95-05, NLG 250 mln Shares 15/08/95 ING Bank GulDem Fonds, introduction through issue, NLG 50 mln
For further information please contact Enquiries: H.S. de Ranitz, Amsterdam Exchanges NV. Tel: Amsterdam (00 31 20) - 523 4014 or Paddy Manning, St. James Corporate Communications: tel: +44 171 436 4101 or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
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.
