LSE cash equity trading slumps as bonds soar
ACTIVITY on the London Stock Exchange’s UK cash equity order book slumped in June, though the fall was offset by Europe’s sovereign debt crisis driving volatility and a heightened interest in bond trading.
The average daily value of cash equities traded in June was £4.3bn, down one per cent from June last year, while the average daily number of trades fell three per cent to 593,569. A spokesman said the LSE, headed by Xavier Rolet, saw spikes on certain days in June as periods of extreme volatility lured traders, but other days had seen depressed sentiment drag on volumes.
In contrast, the average daily value traded on the MTS cash markets during the month rose 23 per cent year-on-year to €9.6bn (£8bn) as traders swarmed around government bonds hit by the Eurozone crisis. On the MTS repo market, the average-term adjusted daily value traded hit €256.9bn, almost twice the level seen in June last year.