Amsterdam MidCap Index relatively successful In October investors were treated to a new index, the Amsterdam MidCap Index for medium-sized companies. Retrospective calculations show that since 1983 the MidCap Index has outperformed the AEX, due primarily to its lower dollar exposure. The new index performed reasonably well in its first month. The index closed its first day at 559.12 points, but by the end of the month this had slipped by 1.5 percent to 552.56. Nevertheless it outperformed its "big brother" the AEX, which fell almost twice as far.
Record turnover levels for Philips and KPN
It was particularly busy on the share market. On Friday October 20 turnover soared to a new daily high of 4.65 billion guilders, which was mainly due to the fact that no less than 17 million Philips shares changed hand. Three days later (in connection with T+3) this resulted in a settlement record of no less than 2.7 billion guilders (previous record dating from 22-4-94 stood at 2.6 billion guilders). This is twice the level of a normal day. In view of the fact that this record was soundly trounced only a few days later by a turnover of 30 million "flips" (Philips shares) with subsequent levels staying high, Philips qualified for the monthly turnover record in an individual stock. However, the electronics giant's share price fared less well, plunging by almost 25 percent in the month.
Another stock to generating "super trade" was KPN, of which the second tranche of a secondary offering of Dutch state-owned shares became eligible for trading. The daily turnover amounted to 20 million shares, and with a record number of transactions (25,222 compared with the previous record of 18,361 set on 7-7-95) the new trading system once again proved their exceptional immunity to stress.
Total 1994 turnover exceeded
October saw cumulative share turnover soar to above the total of the previous year. The point was reached on October 25 when cumulative share turnover over 1995 reached 313.1 billion guilders, compared with 1994 full- year turnover of 311.9 billion guilders. Early in the month, on October 4, total turnover had already topped the 1,000 billion guilder mark. The steady climb in turnover partly reflected increased professionalism, rising share prices (up to end September) and a downtrend in interest rates. Total bourse turnover (shares and bonds) amounted to 129.8 billion guilders in October compared with 116.8 billion guilders in September. In October 1994, turnover amounted to 73.8 billion guilders. Bond turnover rose to 87.9 billion guilders, from 47.7 billion guilders in October 1994.
Share turnover rose to 41.8 billion guilders (a new all time high) from 31.6 billion in September. This compares with share turnover of 26.1 billion guilders in October 1994.
Cumulative turnover for the year to end-October 1995 rose to 1,120.8 billion guilders, an increase of 11 percent on last year's cumulative turnover from January through October ( 1,003.8 billion guilders).
International
Foreign stock exchanges presented a mixed picture. The Paris stock exchange index CAC-40 blipped up one percent while the London FTSE 100 index (Footsie) also nudged up. The U.S. stock exchange slipped fractionally as did the Frankfurt stock exchange.
Limit Book Issues
Due to the prevailing uncertainty with regard to interest rate and currency trends in particular the emphasis shifted from cyclicals to defensive stocks. This resulted in a sharp fall among others for electronics firm Philips, widely regarded as a technology stock. Philips' share price has fallen some 20 percent since end September. Philips was the first to publish (disappointing) third quarter results and was given a sharp rap on the knuckles by investors. High tech stocks have come off their peak, investors reckon. Stocks which showed an uptrend included brewer Heineken and financials Fortis Amev and AEGON. The CBS sub index for financials was in fact the only sub index to rise slightly. Randstad, which has recently become an issue to be traded through the Limit Book, was much in demand. The same was true of foods companies.
In October many investors' eyes were turned to KPN, of which the second tranche became eligible for trade. The total amount raised by the secondary offering of the Dutch state came to 6.3 billion guilders, reducing the state's remaining stake in the post and telecoms concern to less than 50 percent. The launch price was set at 55 guilders per share. Despite a generally weak market on the first day of trade in the new shares, KPN only gave up 20 guilder cents. During the rest of the week, too, the stock remained well on course.
In connection with the expected increase in liquidity following the market placement of the second tranche, the wholesale threshold for KPN shares has been raised from 10,000 to 15,000 shares.
National market
On the national market computer software company Baan released disappointing figures and was penalised by a drop in its share price. The CBS sub index for local companies slipped just one percent, a limited decline -- particularly when compared with the fall in internationals sub index (-/-3.5 percent). A possible explanation could be that internationals suffered relatively more from the weak dollar.
The national market last month welcomed two new stocks, the Italian luxury consumer goods firm Gucci and environment firm Heidemij. Gucci's launch was many times oversubscribed. The first official quotation on Tuesday October 24 of 43.0 guilders already amounted to a price gain of 26 percent. Heidemij's launch, previously launched at Nasdaq, was also succesful. The opening price was NLG. 15 and remained stable the rest of the month.
Issues Bonds 02/10/95 Credit local de France, floating rate '95-05, 200 million guilders 04/10/95 AEGON N.V., 7 7/8% '95, perpetual, 250 million guilders 04/10/95 Nederlandse Waterschapsbank N.V., 6 5/8% '95-05, 250 million guilders 09/10/95 NV Bank Nederlandse Gemeenten 5 3/8% '95-98 DM 300,000,000 09/10/95 NV Bank Nederlandse Gemeenten 6 3/4% '95-05 1 billion guilders 09/10/95 Oc' van der Grinten 6 1/2% '95-01, 200 million guilders 13/10/95 Helaba International Finance Plc, 6 1/8% '95-01, 250 million guilders 13/10/95 International Finance Corporation 3 1/4 '95-01, 200 million guilders 13/10/95 SNS Groep N.V. 6 3/4% '95-04, 500 million guilders 16/10/95 BACOB Overseas Limited 6 3/8% '95-00, 150 million guilders 18/10/95 Staat der Nederlanden 6 3/4% '95-05, 3.6 billion guilders 19/10/95 Staat der Nederlanden 6 3/4% '95-05 5.2 billion guilders 20/10/95 NV Bank Nederlandse Gemeenten, 7% '95-99, D.Kr 400 million 20/10/95 Staat der Nederlanden 6 3/4% '95-05, 1.2 billion guilders 23/10/95 Akzo Nobel NV 7% '95-05, 500 million guilders 25/10/95 Commerzbank Overseas Finance NV 6 1/8% '95-01, 250 million guilders Shares 02/10/95 ABN AMRO Global Property Securities Fund NV, introduction through issue, 133.6 million guilders 02/10/95 ABN AMRO Property Securities Fund America NV, introduction through issue, 37.4 million guilders 02/10/95 ABN AMRO Property Securities Fund Europe NV, introduction through issue, 27.3 million guilders 02/10/95 ABN AMRO Property Securities Fund Far East NV, introduction through issue, 29 million guilders 02/10/95 Heidemij NV, introduction through secondary offering, 286.6 million guilders 06/10/95 Pays-Bas Property Fund NV, rights issue, 110.4 million guilders 20/10/95 Koninklijke PTT Nederland NV, secondary offering, 6.3 billion guilders 24/10/95 Gucci Group NV, introduction through issue and secondary offering 2.5 billion guilders 30/10/95 SNS Beleggingsfondsen NV, fonds 4, SNS Guldensdividendfonds, introduction through issue, 10 million guilders 30/10/95 SNS Beleggingsfondsen NV, fonds 5, SNS Guldensgroeifonds, introduction through issue, 10.1 million guilders 30/10/95 SNS Beleggingsfondsen NV, fonds 3, SNS Nederlands Aandelenfonds, introduction through trading, 13.9 million guilders 30/10/95 SNS Beleggingsfondsen NV, fonds 1, SNS Obligatiedividend- fonds, introduction through trading, 435.5 million guilders 30/10/95 SNS Beleggingsfondsen NV, fonds 2, SNS Obligatiegroeifonds, introduction through trading, 207.5 million guilders
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