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LSE Says Trading Remained Subdued In 5-month Period

9/26/2012 6:04 AM ET

London Stock Exchange Group Plc (LSE.L), in an update for the five-month period ended August 31, said Wednesday that new issue levels and trading remained subdued in the period, reflecting quiet market conditions compared to the prior year. However, the company said its performance was positive, with good revenue growth amid difficult market conditions.

Xavier Rolet, chief executive commented, "We continue to make good progress, with our diversified business delivering good revenue growth against the same period last year. This is particularly pleasing given that some parts of our business have experienced difficult market conditions."

During the period, new issues across Group markets declined 46 percent to 49 from 91 new issues last year. Total market capitalization was 2.196 trillion pounds, compared to 2.192 trillion last year. In the five-month period, total money raised fell 81 percent to 4.3 billion pounds.

Average daily UK equity value was 4 billion pounds, lower than 5 billion pounds a year ago. Share of trading in the company's total UK equity order book improved 1.5 percent to 64.4 percent.

Italian average daily volumes were 226,000 trades, lower than 270,000 a year ago. Share of equity trading in Italy grew 2.4 percent to 85.7 percent.

The company noted that its Clearing volumes reduced in line with trading levels, although the level of initial margin held increased 23 percent to an average 10.3 billion euros.

Assets under management in the Monte Titoli custody business grew 4 percent, while settlement instructions reduced 25 percent, the company noted. Monte Titoli SpA is a subsidiary of the London Stock Exchange Group, owner of the Italian Stock Exchange and that of London.

Further, the company also announced the launch of its 'International Board' in an agreement with Singapore Stock Exchange to allow largest stocks on each exchange to be traded by their respective member firms.

During the period, the company also received an additional, non-recurring, payment of C$29 million from Toronto-based TMX Group, Inc. (X.TO, TSX_X.TO), related to last year's terminated merger transaction. LSE's $3.4 billion bid to combine with TMX Group failed in June 2011. TMX is the owner of the Toronto Stock Exchange.

Looking ahead, the company said it is well positioned to benefit from improved sentiment in the Eurozone.

The company said it expects to announce its interim results for the first half ending September 30, on November 16.

LSE.L is currently trading at 1,046 pence, down 14 pence or 1.32 percent, on a volume of 127 thousand shares.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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