Strong first half for new listings
During the first six months of 2010, the Luxembourg Stock admitted to trading 4,457 new securities, against 3,608 in the first half of 2009, an increase of 23.53%. This positive trend was seen particularly in the bond and warrant segments.
This growth was related to more favourable conditions that were observed in the primary market, but were also the result of positive actions taken by the LuxSE with regard to issuers and capital market professionals.
Notable listings for the Luxembourg Stock Exchange during the first half included a second bond issue from the Luxembourg State on 18 May 2010, which followed an issue in 2008. Aimed at institutional investors, the new issue was for an amount of two billion euros, with an annual coupon of 3.375% and a final maturity on 18 May 2020. In the bond segment, strong activity was also seen in high-yield bond sector.
As regards the sector of depositary receipts, the number of new listings rose from six in the six months to 30 June 2009 to twenty-four in the first half of 2010. This growth confirms the central role played by the LuxSE for depositary receipts, in particular for issuers from India. Overall, 250 depositary receipts are currently listed on the Luxembourg Stock Exchange, which is the leading listing centre in Europe for this type of instrument.
In total, as at 30 June 2010, the number of quotation lines on the two markets of the Luxembourg Stock Exchange reached 44,648 units, comprising 38,670 on the regulated market and 5,978 on the Euro MTF market. New listings on the Euro MTF market increased significantly (68.40%) compared to the first half of 2009. The total of listed securities was comprised of 29,878 bonds, 313 shares, 7,229 investment fund and 7,228 warrants.
New market position for the Luxembourg Stock Exchange
The LuxX index closed the first half of 2010 at 1,384.13 points against 1,118.31 on June 30, 2009.
In the first half of 2010, the volume of transactions on the Luxembourg Stock Exchange reached a total of 133.62 million euros, with the share segment representing 69% of this amount.
The Luxembourg Stock Exchange has initiated a number of measures to position its secondary market by increasing the number of its members. Some of these institutions, established in Germany, Belgium and the Netherlands, act remotely on the Luxembourg market, processing or providing prices on a selection of securities. In this respect, the Luxembourg Stock Exchange passed, on 30 March 2010, the milestone of 1,000 bonds in continuous trading on the UTP (Universal Trading Platform). The continuous mode for the bonds concerned is driven by market makers who offer executable prices throughout the trading session. This activity in the bond market is part of a development strategy aimed at increasing liquidity and transparency.
A dynamic dissemination activity
The Luxembourg Stock Exchange, and its subsidiary Finesti, specializing in information relating to investment funds, took a proactive approach to the dissemination of financial and market information, in line with the desire of the management of the LuxSE for diversification. The LuxSE continues with the development of synergies with its subsidiary Finesti, especially in information technology and business development.
The websites of the LuxSE (www.bourse.lu) and Finesti (www.finesti.com) recorded a significant increase in use during the first half to reach a monthly figure of around of two million hits each on 30 June 30, 2010. The activity related to the publication of official notices also grew favourably, with a daily average of twenty-five notices. In addition, the Luxembourg Stock Exchange offers services called OAM (“Officially Appointed Mechanism”) for issuers of securities admitted to the EU regulated market, these services being for recording and archiving of regulated information.
The Luxembourg Stock Exchange: strong development of promotional activities
The Luxembourg Stock Exchange held on 4 March 2010 its traditional Stock Exchange Day, which saw record attendance. Nearly a thousand people attended the event held at the new conference centre in Kirchberg. At this year’s event, the Minister of Finance, Mr Luc Frieden, guest speaker for the evening, delivered a speech entitled “Luxembourg in the era of the G20.”
Furthermore, the Luxembourg Stock Exchange contributed to the work and activities of the Federation of European Securities Exchanges, especially in the area of European draft laws and regulations. It follows particularly closely, with the secretariat of the Federation, the various debates on the revision of the Markets in Financial Instruments Directive in order to arrive at solutions adapted to the models of market operators and in the interests of investors.
About the Luxembourg Stock Exchange
The Luxembourg Stock Exchange began operating as a limited company in 1929, and has since gained extensive experience in listing and trading of securities from many different regions. Today the Luxembourg Stock Exchange has two markets — regulated and Euro MTF — with 29,878 international bond issues representing 42% of total international bonds listed on EU markets. It also lists some 7,229 shares and units of investment funds in around twenty currencies, offering a wide range of investment opportunities, as well as 250 Depositary Receipts of issuers based in emerging markets.
The Exchange’s website at www.bourse.lu provides individual investors access to market information on Luxembourg securities. Additional data are available through the Finesti portal (www.finesti.com), its subsidiary specialising in information for investment funds.
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