The surge in issuances and the increase in trading volumes led to a jump in revenues and profits of the Tel Aviv Stock Exchange in the summary of 2020. The company ended the fourth quarter with a profit of NIS 11 million, compared to NIS 3 million in the corresponding quarter.
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The stock exchange’s revenues in 2020 grew by 17% and amounted to NIS 304 million, compared to NIS 260 million in 2019. Revenues in the last quarter of 2020 rose to NIS 77.5 million, compared with NIS 66 million in the corresponding quarter. The stock exchange will distribute an annual dividend of NIS 18.45 million.
The most significant jump was recorded in revenue in the Commissions and Trade sectionClearing, Amounted to NIS 33 million in the fourth quarter, compared with NIS 26 million in the corresponding quarter. In 2020, commissions amounted to NIS 136 million, an increase of 28% compared to commissions in 2019 (NIS 107 million).
The increase in revenue is also attributed to the high number of share issues, which stood at 42 in 2020, a jump of 92% compared to the previous year, of which 27 issues of new companies. The market value added to the stock exchange following the new issues is estimated at NIS 17 billion, the highest number since 2007. Since the beginning of 2021, the issue trend of new companies has continued, with 30 new companies, including 21 high-tech companies and R&D partnerships. prospectus More. In 2020, the number of public companies on the stock exchange rose to 455.
Registration fees and fees arising from new issues in the market (of new and old companies) contributed NIS 60 million to the stock exchange’s revenues in 2020. An amount that is NIS 5 million higher than in 2019.
Trading in the stock market in 2020 was characterized by urban trading volumes and amounted to NIS 1.9 billion per day – 43% higher than the average turnover per day in 2019. Trading was characterized by great volatility when in March 2020, the peak of the corona crisis, the average daily turnover was NIS 2.9 billion , While in the months of May to December 2020 and also in the summary of the last quarter of 2020, the average daily turnover amounted to about NIS 1.7 billion.
The report also shows that in 2020, share sales were continued by stakeholders but in a moderate manner than in previous years. The stakeholders sold shares worth about NIS 4.8 billion, and on the other hand bought shares worth about NIS 1.8 billion. The share of public holdings in shares rose at a moderate rate and reached about 64% at the end of 2020.
The TASE took advantage of the momentum of growth in trading in the capital market and increased marketing and distribution expenses, which increased in 2020 to NIS 11 million, compared with NIS 8 million in 2019. In addition to the sponsorship that the stock exchange provides to the Premier League in football, a number of campaigns have been added to the target audiences of the Tel Aviv Stock Exchange. With the outbreak of the corona crisis came two campaigns in the various media channels, the first was a call for the government to act to fund aid measures for small and medium-sized businesses in dealing with the corona crisis, the second to attract new audiences to the capital market.