DNB ‘historic increase’ equity of € 101 billion – Financieele Dagblad (Registration)

rose in the first quarter, the listed Dutch equity funds with € 101 billion in value. That is the biggest increase since the last quarter of 1999, as calculated De Nederlandsche Bank. DNB also speaks of a “historical increase in the stock market.”

That is in the last Statistical News, which was released Monday. In the first quarter of 2015 the market value of listed Dutch companies rose to € 735 billion. According to DNB, which was “mainly due to price increases, reducing the market value of Dutch shares rose by € 101 billion. The AEX was by 500 points and thus stood at the highest point in years, while the midcap and smallcap sharply opliepen.

Emissions

Since 2007, the volume of Dutch shares was not exceeded the € 700 billion. The low point was reached in the first quarter of 2009. When the fund had a market value of € 266 billion. That was right after the Lehman crash. Scholarships were collapsed over the world and the AEX rose 199.25 points.

“With the sustained rebound in the stock market also took the volume of IPOs and new issues of shares to the last two years. In the past eight quarters, Dutch companies raised € 17 billion in additional capital, “writes DNB. Came in the first quarter GrandVision, Lucas Bols and Refreco Gerber to Damrak. With those three IPOs were raised € 1.586 billion.

interesting

It is striking that the Dutch Central Bank itself seems largely to debit to the enormous price rises on the stock markets. The European Central Bank performs exceptionally loose monetary policy. DNB carries out the orders of ‘Frankfurt’, even though it was Klaas Knot opponent of the policy that ECB President Mario Draghi has rolled. Monthly purchases the ECB for € 60 billion of bonds and press interest.

The result is that bonds are less attractive as an investment, because you can achieve lower returns – the interest rate is extremely low. Shares are interesting, as they still render. Loose monetary policy is good for the exchanges: in much of the western world stock indexes at record highs or at least around the highest point in years

Bubble Formation

DNB warned late April for an” unbalanced price movements of global shares ‘. Earlier that month, the institute found at Frederiksplein it exceptionally easy monetary policy ‘bubble formation in the hand works.

In 2014, DNB warned for high yield bonds, also last month for stocks, and at the other track “on which the financial markets have ended. “Before the financial crisis could make an investor gains on bonds or stocks, but rarely both at once. For several years, this is possible, “concluded De Nederlandsche Bank on 23 April. “The purchase programs have for years been the main theme of the market and influence the investment decisions of market participants.