ISE share trading soars by 22% in four months

SHARE trading on the Irish Stock Exchange (ISE) soared by 22% to €26.8 billion in the first four months of the year, generating commission of more than €33.5m for stockbrokers.

The Irish Exchequer benefited directly, taking in €26.8m in stamp duty on the shares traded.

The average daily equity turnover rose to €440m during the period and the ISEQ index of Irish shares hit a new record high.

However, this was shortlived as a direct result of the collapse in Elan’s share price, which also wiped close to €400m off the value of Irish pension funds.

A total of €26.8 billion was traded on ISE Xetra, in the first quarter up 22% on the €21.9bn traded in the same period of 2004.

The average daily equity turnover on the Exchange in the first quarter of this year rose to €440m from €343m in the first quarter of 2004.

Companies trading on the ISE raised €332m in the first quarter.

The average number of transactions per day in the quarter was 3,171 compared to 2,962 in the first quarter of 2004.

The ISE said this emphasised the underlying liquidity of the market and reflected an increased level of investment in equities by private investors.

The ISE said the depth of liquidity in the market will be further enhanced by a new market-making regime established by the Exchange in the first quarter.

Goodbody and Davy Stockbrokers have both been authorised by the Exchange as market-makers in the first quarter and are covering a very extensive range of securities traded on the market. Susquehanna International Securities and CSFB are also acting as market-makers in certain stocks.

The ISE also launched a new index, the ISEQ 20 Index, on March 7, 2005. The index represents 20 of the most liquid and largest capped equities listed on the Irish Stock Exchange.

The ISEQ 20 index has recorded growth of 99% in the price index and 129% growth in the return index in the seven-year period for which the index data has been calculated.

The first product to track the ISE’s new index, the ISEQ representing 20 of the most liquid and largest capped equities listed on the Irish Stock Exchange will come to the market very shortly.