From this week's Web Report:
eBrokers - Weekly Stock Volume Report - Scott Appleby -
mailto:scott@rsco.com
Volumes Update - The seasonal lull in trading continues to take its
toll on trading volumes. This week's NETDEX volumes were down 2.8%
from 686 million to 667 million shares traded, the lowest volume
total this quarter. Total NASDAQ volume for the week also declined
0.7% from 4.4 billion to 4.37 billion shares traded. The slowdown
in volumes is not a surprise given that lower volumes have
historically marked the end of August. Additionally, volume levels
have further been affected by the Fed's decision to tighten
interest rates 25 basis points last week.
This week we are also introducing a market cap-weighted price
eBrokerage Index to measure the performance of our eBrokerage
stocks relative to the beginning of the year. E*Trade, AmeriTrade,
Schwab, NDB, Waterhouse, DLJ Direct, ITG, and Knight/Trimark make
up the new eBrokerDex. We believe the seasonal slowdown in volumes
has negatively affected the stock prices of our eBrokers in recent
months. Relative to a January 4, 1999, baseline of 100, the
eBrokerDex reached 190 on June 30, the end of the second quarter.
Thereafter, our index showed a steady decline as the summer months
began, ending at 149 on July 30. This week, the eBrokerDex closed
at 131, down 4% from last week's index close of 137.
We continue to believe that the recent decline in volume is a
short-term setback, typical of this time of year. We continue to
believe E*Trade and AmeriTrade will remain leaders in eBrokerage,
while Knight/Trimark appears well-positioned as the leading market
maker. |
