Sunday 28 May 2017

Share trades down 25pc in three months

Donal O'Donovan

Donal O'Donovan

THE number of shares traded on the Irish Stock Exchange (ISE) was down by close to a quarter over the last three months.

Spiralling levels of sovereign debt did give a boost to activity, however, with turnover in Irish Government bonds up more than 75pc.

The overall value of shares listed on the ISE stood at €45bn at the end of the third quarter. The total is down 5pc from the same time a year ago but is little changed since the start of the year.

Unsurprisingly, the banking sector was especially badly hit.

The ISEQ financial index of mostly banking stock fell by 14pc over the three months.

The fall in share trading comes as risk-adverse investors increasingly opt to keep cash on deposit. The number of shares changing hands in Dublin fell to 461,512 for the third quarter, averaging fewer than 7000 per day.

In the same period in 2009 there were 608,636 shares traded, averaging more than 9,000 per day.

Bank of Ireland and AIB used the exchange to raise close to €200m from investors in September. Bank of Ireland raised €49m and AIB €149m.

Five more companies raised small amounts of funds from investors.

In fact, trading in the shares of smaller companies actually increased over the period.

Data from the exchange showed trading in the small cap index, a cross-section of shares in smaller-sized business, increased by 5pc during quarter three.

The ISE doesn't receive commission on trades.

It makes its money from companies listing new equities or debt securities and from members registering to deal in ISE securities.

Irish Independent

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