Swiss New Market blows out first candle
The Swiss New Market Index is celebrating its first birthday after 12 months of high volatility in new economy stocks. Yet despite its sometimes wild price fluctuations, analysts agree the infant index is a success.
After a slow start in the face of some strong European competition, 14 companies are now listed on the index, with a total market capitalisation of around SFr13 billion.
By comparison, Frankfurt’s equivalent index has just 12 members after the same time frame.
The New Market Index has been buffeted by strong price fluctuations over the past year. At its launch the index stood at 1,000 points and reached 2,400 at the height of the boom in new technology stocks in March this year.
It fell to 1,300 in the wake of turbulence on New York’s Nasdaq and is now just below the 1,600 mark.
The purpose of the index is to make it easier for fast-growing companies to raise capital on the Swiss equity market and to give investors the opportunity to benefit from their above average growth potential.
One arrival keenly anticipated this autumn is Blue Window, the Swiss Internet provider which is to join after becoming independent from the telecommunications giant Swisscom.
The New Market index is expected to have around 20 members by the end of the year. The index aims to include around 50 companies by 2002.
swissinfo with agencies
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.