Economic consultants Indecon have carried out a major study on the benefits of having our own stock exchange. Over 2,000 people are employed in the securities industry here with a further 97,000 jobs supported by ISE listed companies.
Alan Gray, Managing Partner of Indecon, said the scale of the equity raised in the period under study was particularly impressive. "Over €23 billion was raised during the period from 2004 to 2013. Given the importance of finance here, the ability to raise that amount is remarkable," he stated. That was money that flowed into the direct economy through jobs and taxes, he added.
The study also found that Ireland was ranked third globally for debt listings. "The research showed that a range of factors influenced that from the efficiency of the debt listing and the administration on the exchange to the range of supports available to those issuing debt." Mr Gray said there was further scope for debt issuance in the form of small and medium sized business debt. "There are proposals for a bond market for SMEs but it may require fiscal change to make it a competitive offering here."
Mr Gray acknowledged that the presence of nearby large stock exchanges presented a challenge to a small exchange like the ISE. "All small exchanges face significant pressures from larger markets. The ability of firms to have a dual listing is an advantage, though, as they get benefit of local knowledge and support services," he pointed out.
He said stock market losses, like the ones we've seen recently, presented more of a challenge to small investors than to the exchange itself. "It's more of a challenge for individual small investors looking for short term gains. It's ill-advised to get involved in that behaviour as the investments could be subject to significant losses," he added.
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MORNING BRIEFS - US drugmaker AbbVie has officially called off its proposed $55 billion takeover of Shire. AbbVie's board of directors said last week that it had withdrawn its recommendation to proceed with the purchase. The head of AbbVie pointed the finger at the US Treasury for killing off the deal - Rick Gonzalez said the clampdown on so-called tax inversions which were designed to discourage corporate mergers that lead to lower taxes. The merged firms were proposing to shift to Jersey, where corporate taxes are lower. Shire will walk away from the deal with a $1.64 billion breakup fee.
*** China's economy grew at its slowest pace in five years in the last quarter, according to the latest figures. Gross domestic product, or GDP, was up 7.3% - marginally ahead of the 7.2% expected, but down on the 7.5% recorded in the previous quarter. The outcome will fuel concerns about the knock on effect on the global economic recovery. It will also add to speculation that the Chinese government may introduce more stimulus measures.
*** Apple is forecasting a strong holiday season after it reported much better than expected sales and revenue figures for the three months to the end of September. Revenue was up 12.2% in the three month period to $42.12 billion - more than $2 billion billion better than Wall Street analysts had expected. It chalked up a 16% jump in iPhone sales in the quarter to over 39 million and it reported the strongest Mac shipment figures in years. Sales of the iPad, however, fell for the third quarter in a row - 13% down on the same period last year to 12.3 million units. However investors were generally impressed with the outlook and shares went back above the $100 barrier to $101.10 in after hours trade on Wall Street.
*** Christophe de Margerie, the chief executive of French oil company Total, has died in an air crash in Moscow. His plane crashed when it collided with a snow-clearing machine, killing him and three crew. The 63 year old had been chief executive of Europe's third largest oil company for the last seven years.
