• Turnover at the Iceland Stock Exchange (ICEX) in 2002 amounted to ISK 1,133 billion which is a 51% increase from the previous year (749). Both equity and bond turnover broke previous annual records.
  • A monthly turnover record was set in September, ISK 138 billion.
  • Equity trading was ISK 321 billion, which is more than ISK 183 billion and 132% higher turnover than in 2001 (138).
  • Turnover in bonds and bills amounted to nearly ISK 812 billion, which is a 33% increase from the year before (611).
  • The ICEX-15 Index rose by 16.7% and closed at 1,352.03.
  • All sector indices appreciated during the year. The Pharmaceutical Index registered the greatest gain or 55.6%.
  • Three new companies were listed in 2002 and ten delisted. There were 64 companies listed at year-end.
  • At the end of the year there were 19 ICEX members, including one foreign member.

Monthly turnover - July 2001 to December 2002

Thordur Fridjonsson, ICEX’s CEO: ”A good year is behind us and the outlook at the turn of the year is favorable. Trading was exceedingly lively last year. Bond turnover increased by one-third and equity turnover more than doubled. Furthermore, share prices rose substantially in contrast to developments in most equity markets elsewhere. Favorable developments in the Icelandic economy, sound profitability and optimism about robust economic growth in the next few years all contributed to this outcome. In addition, firms have been laying the foundation for increased output and productivity, e.g. through mergers and acquisitions.”

  • Equity turnover in 2002 was ISK 321 billion, a new annual record. The turnover in 2001 was ISK 138 billion and in 2000, the previous record year, the turnover amounted to ISK 199 billion.
  • Turnover in the latter half of 2002 was ISK 160 billion, 1% lower than in the first half of the year (161) but 131% greater than in the last six months of 2001 (69).
  • A new monthly turnover record was set in September when equity turnover reached close to ISK 39 billion.
  • The share of on-exchange trades was 20.3% compared to 23.1% in the previous year.
  • Turnover velocity was 65% compared to 37% in 2001.

Monthly turnover and the closing value of ICEX-15

  • One new company was listed on the ICEX Main List and two on the ICEX Alternative Market. On the other hand, ten companies were delisted, thereof 7 from the Main List, two from the Growth List and one from the Alternative Market.

New listings in 2002

12.7.2002Vatryggingafélag Islands hf. (insurance company) listed on the Alternative Market.

23.12.2002Kaldbakur hf. (investment company) listed on the Main List.

23.12.2002Taekifaeri hf. (investment company) listed on the Alternative Market.

Delistings in 2002

18.2.2002Keflavikurverktakar hf.

30.4.2002Lodnuvinnslan hf. delisted following a merger with Hradfrystihus Faskrudsfjardar.

7.6.2002Utgerdarfelag Akureyringa hf. At the date of delisting the company was 97.5% owned by Hf. Eimskipafelag Islands.

17.7.2002Talenta Hataekni hf. delisted following a merger with Islenski hugbunadarsjodurinn hf.

21.8.2002Skagstrendingur hf. At the date of delisting the company was 92.7% owned by Hf. Eimskipafelag Islands.

12.9.2002Husasmidjan hf.

3.10.2002Delta hf. delisted after a merger with Pharmaco hf.

8.10.2002Throunarfelag Islands hf. delisted after a merger with EFA hf. The merged company was named Throunarfelag Islands hf.

12.11.2002Audlind hf. delisted after a merger with Kaupthing Bank hf.

16.12.2002Haraldur Bodvarsson hf. At the date of delisting the company was 99% owned by Hf. Eimskipafelag Islands.

  • At the end of 2002, 64 equities were listed on ICEX. There were 50 equities on the Main List, including five mutual funds. Nine companies, thereof one mutual fund, were listed on the Growth List and five companies on the Alternative Market.
  • The total market value of listed shares at the end of the year was ISK 530 billion compared to ISK 428 billion at the end of 2001.
  • The shares of Islandsbanki were the most traded in 2002 with a turnover of about ISK 34 billion. Approximately 63% of the equity turnover is accounted for by the ten most traded shares.
  • Equity turnover - Top 10

Turnover / % / Accumu- / Price (1)
ISK billion / of total / lated % / 31/12/01 / 31/12/02
Islandsbanki hf. / 33.7 / 10.5% / 10.5% / 4.23 / 4.74
Kaupthing Bank hf. / 27.1 / 8.4% / 18.9% / 124.00 / 130.00
Pharmaco hf. / 25.0 / 7.8% / 26.7% / 49.62 / 74.00
Delta hf. / 21.0 / 6.5% / 33.2% / 44.71 / (3)
Baugur Group hf. / 20.2 / 6.3% / 39.5% / 7.19 / 10.90
Bunadarbanki Islands hf. / 18.5 / 5.8% / 45.3% / 4.07 / 4.60
Ossur hf. / 16.2 / 5.0% / 50.3% / 49.80 / 54.00
Landsbanki Islands hf. / 15.5 / 4.8% / 55.2% / 3.30 / 3.65
Vatryggingafelag Islands hf. / 14.4 / 4.5% / 59.6% / (2) / 23.20
Hf. Eimskipafélag Islands / 10.2 / 3.2% / 62.8% / 5.05 / 6.30

(1) Price on 31/12/01 is adjusted for splits and dividends in 2002.

(2) Listed on 12.7.2002. The first closing price was 25.0.

(3) Delisted on 3.10.2002. The last closing price was 74.5.

  • The ICEX-15 Index closed at 1,352.03 points at the end of the year, 16.7% higher than at the end of 2001. The ICEX-Main List Index rose by 21.6% during the year, whereas the ICEX-Growth List Index fell by 5.8%.
  • All sector indices increased during the year, none more so than the Pharmaceutical Index which rose by 55.6%. The Index of Equity Funds and Investment Companies gained the least, about 1.8%.

Development of sectoral indices – January to December 2002

Indices / Change / % of market value
1 / Finance and insurance / 4.1% / 31.2%
2 / Fisheries / 23.8% / 15.7%
3 / Information technology / 5.1% / 10.3%
4 / Pharmaceutical / 55.6% / 8.9%
5 / Industry and manufacturing / 18.6% / 8.6%
6 / Services and commerce / 47.4% / 5.2%
7 / Oil distribution / 21.8% / 5.6%
8 / Equity funds and investment companies / 1.8% / 4.7%
9 / Transport / 47.5% / 8.3%
10 / Building and construction / 39.6% / 1.3%
100.0%

Sectoral indices, change and percentage of market value

Members’ share in equity turnover – Top 5

Percentage of volume by market value

TotalOn- exchange trades

Kaupthing Bank / 29.2% / Kaupthing Bank / 29.7%
Islandsbanki / 20.1% / Islandsbanki / 22.5%
Landsbanki Islands / 19.5% / Bunadarbanki Islands / 19.4%
Bunadarbanki Islands / 19.0% / Landsbanki Islands / 16.4%
Verdbrefastofan / 6.0% / Sparisjodur Hafnarfjardar / 2.4%
  • The total turnover of bonds and bills in 2002 amounted to a little under ISK 812 billion which is a 33% increase over the year before (ISK 611 billion). The last two years are the greatest in terms of turnover in ICEX’s history.
  • The turnover in the latter half of the year was 44% greater than in first half of the year or ISK 480 billion compared to ISK 332 billion. The turnover in the last six months of the year was 39% greater than in the corresponding period in 2001 (345).
  • On-exchange trading accounted for 65.2% of the turnover compared to 74.2% in the previous year.
  • Monthly turnover of bonds and bills

  • Turnover broken down by type of instrument (ISK billions):

Housing bonds / 319.2
T-Notes / 133.2
Housing Authority Bonds / 110.7
T-Bonds / 103.4
Bank Bills / 69.9
T-Bills / 48.4
Other corporate bonds / 26.9
Samtals / 811.8
  • The most traded bond is housing bond 01 2 (IBH 41 0315). Its turnover was almost ISK 110 billion. Around 72% of the turnover in the fixed-income market is accounted for by the ten most traded housing bonds, housing authority bonds, T-notes and T-bonds. The Central Bank of Iceland cut interest rates ten times in 2002 by 4.3 percentage points in all. As was to be expected, the yields on short non-indexed T-notes were most affected. The yield on RIKB 03 1010, for instance, fell by 3.8 percentage points. The yield on indexed bonds came generally down by between 0.4 and 0.8 percentage points during the year. The yield on short T-bonds (RIKS 05 0410) fell though considerably more while the yield on long T-bonds (RIKS 15 1001) decreased somewhat less.

% / Accumu- / Yield
Symbol / ISK billion / of total / lated % / 31.12.2001 / 31.12.2002
IBH 41 0315 / 109.7 / 13.5% / 13.5% / 5.50% / 5.12%
IBH 37 1215 / 90.9 / 11.2% / 24.7% / 5.59% / 5.14%
IBN 38 0101 / 63.6 / 7.8% / 32.5% / 5.43% / 5.05%
RIKB 07 0209 / 63.5 / 7.8% / 40.4% / 9.08% / 6.94%
IBN 20 0101 / 47.0 / 5.8% / 46.2% / 5.91% / 5.13%
RIKS 15 1001 / 46.7 / 5.8% / 51.9% / 5.07% / 4.95%
IBH 22 1215 / 45.7 / 5.6% / 57.5% / 5.99% / 5.17%
RIKB 03 1010 / 44.2 / 5.5% / 63.0% / 9.86% / 6.10%
RIKS 05 0410 / 40.8 / 5.0% / 68.0% / 6.24% / 4.45%
IBH 26 0315 / 35.8 / 4.4% / 72.4% / 5.94% / 5.19%
Members’ share in bond market turnover – Top 5

Percentage of volume by market value

TotalOn- exchange trades

Kaupthing Bank / 25.1% / Kaupthing Bank / 23.4%
Islandsbanki / 19.3% / Islandsbanki / 20.1%
Landsbanki Islands / 19.3% / Landsbanki Islands / 18.5%
Bunadarbanki Islands / 18.2% / Bunadarbanki Islands / 16.3%
Sparisjodabanki Islands / 5.9% / Sparisjodabanki Islands / 8.5%

1

January 2003