The overall trend in share prices was erratic: the biggest rise in the AEX was 5.47 points, while the biggest fall in a single day amounted to 7.96 points.The AEX reached an intra-day high for the month of .... on 28 August before closing the day at 563.38. The last two trading days of the month were characterized by hefty swings on the international share markets in response to U.S. economic growth data. Sentiment took a turn for the worse and the AEX surrendered 12.54 points in two days.
Turnover trends
Total turnover in August dipped to 156.8 billion guilders from 170.4 billion in July, but was up from the previous August's 99.6 billion guilders. Share turnover amounted to 42.7 billion guilders compared with 47.5 billion guilders in July and 32.7 billion guilders in August 1995. August bond turnover amounted to 114.1 billion guilders, of which government bonds accounted for 102.6 billion guilders. Total bond turnover in July amounted to 122.9 billion guilders.
International exchanges
The initial bullish sentiment on the Amsterdam Exchanges NV was influenced by the uptrend on other important international stock markets. Here, too, share price trends were erratic. Recent U.S. economic data, such as employment figures and gross national product growth were translated into a further recovery on Wall Street. The London Stock Exchange even managed to climb to a new all-time high of 3922.10 points on the FTSE 100 index on August 28. German economic growth, too, looks to have resumed its uptrend. But towards the end of the month sentiment turned bearish, influenced by fears of rising interest rates on the back of the fast- growing U.S. economy. On balance the Dow Jones Industrial index rose a net 79.90 points to 5615.84 from 5535.94, a rise of 1.5 percent. In Japan the Nikkei index ended the month over 500 points down.
The dollar hovered between 1.6755 guilders and 1.6536 guilders in August, seemingly little affected by the U.S. economic news.
Amsterdam share market prices
August share prices took their cue from a string of corporate first-half earnings figures. Nutricia stole the show amongst the most actively traded stocks. Its figures were cheered by investors, who boosted the price of the stock by just over 9.5 percent. Also in the winners' enclosure were retail trading chain Ahold and publisher Wolters Kluwer. Fellow publisher VNU also posted higher profits. Among the losers were KLM, fighting to stay ahead amid cut-throat international competition, and food and drinks group BolsWessanen. In the financial sector, the first-half figures of ABN AMRO Bank and ING Group were enthusiastically received. Insurer Aegon upgraded its profit forecast for the current fiscal year. But investors reacted with disappointment to the first-half figures of Dutch post and telecoms company KPN. Apparently they had expected even better. Trading firm Hagemeyer was able to post improved profits despite the price war currently raging in the consumer electronics sector.
On the national issues market, merchant bank Kempen grabbed the limelight with a 58 percent earnings increase. Fellow bank Van de Hoop tripled its net result. Getronics reported a profit jump of 35 percent, while computer maker Tulip reported a first-half loss of 12.7 million guilders. First-half figures from temporary employment agency Randstad were better than the market had been expecting, while Van Ommeren booked a profit increase of 15 percent. The first-half results at dredger Boskalis were mediocre, while builder HBG reported a slight dip in net profits due to losses sustained by its German operations. Heidemij booked almost unchanged profit growth. Newspaper group De Telegraaf said earnings had been undermined by start-up costs. Diversified industrials group Stork was able to report profits up 22 percent excluding its acquisition of Fokker Aviation, which will only be booked next year. Optical systems maker Delft Instruments doubled its first-half profits.
Bonds
The positive effects of the macro-economic figures in the United States led to a clear improvement in the interest rate climate, which translated into a bullish bond market. But at the end of the month fears of interest rate hikes engendered a turnaround and the bond market dipped sharply. The Finance Ministry's Agent surprised the market with a new government bond issue with a short duration of six years at a coupon rate of 5.75 percent for an average effective yield of ......
NEW ISSUES
Shares in August
16/08/96 NV Arnhemsche Maatschappij tot het houden van aandelen,
secondary offering, 159,795,000 guilders
26/08/96 Koninklijke Ahold NV, issue, 280,500,000 guilders
Bonds in August
05/08/96 Caisse d'Amortissement de la Dette Sociale, 6 3/8 percent
'96-04, 3,000,000,000 guilders
05/08/96 ING Bank NV, floating rate '96-98, U.S.$ 250,000,000
08/08/96 Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.
late floating rate '96-18, 500,000,000 guilders
13/08/96 Dresdner Finance BV, 5 5/8 percent '96-01, 250,000,000
guilders
15/08/96 ABN AMRO Bank NV, 1/4 percent '96-99, 250,000,000,000 lire
15/08/96 AEGON NV 7 5/8 percent '96 perp, 250,000,000 guilders
15/08/96 National Australia Bank Limited, 8 3/4 percent 96-00,
Aus$ 175,000,000.
15/08/96 Sweden 5 3/8 percent '96-01, 300,000,000 guilders
21/08/96 Staat der Nederlanden 5 3/4 percent '96-02, 1,200,000,000
guilders
23/08/96 Staat der Nederlanden 5 3/4 percent '96-02,
6,300,000,000 guilders
29/08/96 DePfa Finance NV 6 percent '96-02, 200,000,000 guilders
29/08/96 Rabo Australia Limited, 8 1/4 percent '96II-99,
Aus$ 100,000,000
29/08/96 Rabo Australia Limited, 9 1/4 percent '96-99,
$ 100,000,000
Press Enquiries: Thom Hoedemakers
Amsterdam Exchanges NV
Tel: + 31 20 523 4014
Paddy Manning
St James Corporate Communications
Tel: + 44 171 436 4101