eFinance - Weekly Stock Volume Report - Scott Appleby - scott@rsco.com
NASDAQ CLOSES NOVEMBER WITH SEVEN RECORD VOLUME DAYS- NASDAQ volume in November hit seven of the top ten trading days in NASDAQ history. Trading volume for the month of November gained 29.3% over October volumes. NASDAQ reported growth in volume for the month of November to equal the average annual increase for NASDAQ over the past five years. NASDAQ average weekly volume to date this quarter is 6.0 billion, a healthy 25% increase from last quarter's average of 4.8 billion. Despite this, NetDex and TechDex volumes declined from last week as expected. With only three and one half trading days, volumes in the Internet sector for the period ending November 30 came in at 686 million shares traded, 34.5% below last week's volume of 1,048 million shares traded. The average weekly volume to date this quarter of 870 million is 16% higher than last quarter's average weekly volume of 752 million. TechDex volumes for the same period totaled 1.30 billion shares traded, 37.5% lower than last week's volume of 2.08 billion shares traded. However, average weekly volume for this quarter to date is 1.79 billion shares traded, a 32% increase over last quarter's average volume of 1.36 billion shares traded.
This week, the eBrokerDex closed at 133, a decline over last week's close of 151, but well above last quarters' ending Index of 112 and far below the year's Index high of 280, achieved on April 13.
KNIGHT/TRIMARK MONTHLY VOLUMES KEEP TREKKING UP, NOVEMBER MARKET SHARE JUMPS TO 18.82%, AS COMPARED WITH OCTOBER MARKET SHARE AT 14.61%-
Knight/Trimark's AutEx NASDAQ/OTC volume for the four-day week was 1,161 million, a decrease from last week's volume of 1,860 million. Market share for NITE remained steady at 19.79%, vs. last week's market share of 20.53%.
SEQUENTIAL TRANSACTION GROWTH LOOKING MORE LIKE HIGH END OF RECENTLY RAISED RANGE OF 15%-20% - - LEADING eBROKERAGE COMPANIES APPEAR POISED FOR UPSIDE SURPRISE-
As Knight goes, so go the online brokers, in our view. On November 15, we raised our sequential transaction growth from 10% to 15-20%. Given the strong market volumes, the market share growth NITE has enjoyed during this quarter from 15.8% last quarter to 16.8% to date this quarter in Autex NASDAQ volumes, combined with industry sources, we now believe 20% sequential transaction growth is more likely with a bias towards 25%.
In addition, we estimate the eBrokers have enjoyed trading days equaling 50%+ higher-than-average quarterly estimates and now believe that given a moderate December, the eBrokers are poised to provide upward surprise to December quarter estimates.
The RS eBrokerage index, which closed on Tuesday at 133, is up 33% from its YTD lows, but still remains 52.5% below its all-time high of 280 set in April. While competition has increased, we believe the market remains highly fertile and continues to grow daily. With 9.25 million accounts today, eBrokerage still only represents 14% of the all brokerage accounts in the U.S. We continue to like the leaders in the space that possess brand, scale and segment-leading consumer value proposition. In our view, EGRP remains the best-positioned pure play eBroker, followed by Ameritrade. |
