Trading activity rises on stock market

DEPRESSED stock markets failed to dent activity on the Irish stock exchange yesterday. And the index reported strong trading activity in the fist half of 2009.

In its half year up-date, it said more than 1.15 million trades were dealt on the exchange. The data “confirms trading remains strong despite lower trade values”, the statement said.

In the period, turnover in Irish Government bonds doubled to €62.8 billion while the ISEQ’s indices have shown welcome growth after a very tough 12 months or more.

The figures form the Irish Stock Exchange show the number of trades dealt on the ISE remained solid and were up from 1.12m to 1.15 million.

Share price weakness however tells another story pushing the market value of stocks quoted on the exchange compared with 2008 down to €24.5bn, a staggering decline compared with the €68.7bn of a year ago.

Over the first half of the year, €1.358bn was raised in equity markets involving 13 companies.

Most significant was the CRH cash call in March that raised €1.278bn by way of a rights issue.

Turnover in Irish Government bonds and treasury bills increased sharply during the period, with trading worth €62.8bn more than double the €31.3bn sold during the first half of 2008.

The National Treasury Management Agency, presently overseeing the setting up of NAMA, the state’s bad bank, issued three new Irish Government bonds, maturing in 2012, 2014 and 2019, and 11 new short term treasury bills in the period raising €36.2bn, boosting the number of Government bonds and treasury bills trading on the ISE to 21.

The ISE also reported that the number of primary dealers in government bonds increased in the first half of 2008 with J P Morgan Securities Ltd, admitted as a member firm of the exchange in June, bringing the total number of primary dealers in government bonds to 11 at mid year.

From an investor viewpoint the fact that all of the ISEQ’s indices showed growth since the year end offers some consolation to investors who have lost their shirts on the ISEQ as the property bubble led to the decimation of financial and building shares in particular.

The review shows that share prices in the half year listed on the ISEQ rose 15% in value, if from a depressed base.

Financial companies turned in the best performance rising 41% from the record lows they had plunged to at the end of last year.

Small listed companies did even better achieving growth of 44%.