Key Facts:

  • Number of companies trading on AIM as at 30 September 2011 – 1,156
  • Total funds raised on AIM in 3 months to 30 September 2011 – £685m
  • Number of companies trading on Main Market as at 30 September 2011 – 1,402
  • Total funds raised on Main Market in 3 months to 30 September 2011 – £1,059m

 

MARKET COMMENTARY

AIM

  • Number of listed companies has increased in Q3 2011.
  • The number of new issues in Q3 2011 has increased to 33 from 31 in Q3 2010.
  • Number of companies on AIM is at a similar level as April 2005.
  • Average market cap of an AIM company decreased to £55.1m in September 2011 from £65.6m at the end of June 2011. This has increased from £54.5m at the end of September 2010.

Market movements

  • FTSE AIM All-Share Index decreased 18.37% in Q3 2011 to 700.3 (4.81% decrease in Q2 2011).

Summary statistics

Main Market

  • There has been a decrease in new money raised in Q3 2011 from £9,559.7m in Q2 2011 to £474.4m.
  • The number of companies has fallen from 1,413 at 30 June 2011 to 1,402 at 30 September 2011.
  • The amount of further money raised has decreased from £1,094.9m in Q2 2011 to £585.1m in Q3 2011.

Market movements

  • FTSE All-Share decreased 14.30% in Q3 2011 (0.95% increase in Q2 2011).

Summary statistics

Conclusions

Q3 2011 saw less funds raised on the AIM market than Q2 2011 or Q3 2010. While the average market capitalisation and index levels have decreased markedly in the quarter, due to the global market conditions, the total number of companies on AIM has increased for the first time since Q4 2007.

On the Main Market, the number of new admissions has decreased, with the lowest level of funds raised for new entrants since Q3 2009. As with the AIM market index levels, the FTSE All-Share, has lost significant value.

This quarter has been a testing time for both prospective and current market participants, with index levels dropping and many proposed high profile listings being shelved around the world; the outlook of many investors has remained cautious in this environment of extreme volatility.

Figures in the tables and graphs above are derived from the monthly market statistics published by the London Stock Exchange.

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