Nasdaq Scales An All-Time High
The Nasdaq Composite reached its tenth consecutive record close on July 16, 1997 when the index closed at 1580.63 points, registering a gain of 38.92 points. This was the biggest points gain since the inception of Nasdaq.
The Nasdaq Composite Index has gone up by 26 per cent in the past one year. The composite index has shot up by 50.2 per cent since the beginning of 1996. The trading at the exchange has increased substantially with the total volume touching 836 million. This makes Nasdaq the second largest exchange in the world in terms of volume.
The Nasdaq Composite Index, which was established in February 1971, has over 5,500 companies listed. It is also believed to be one of the fastest growing stock markets in the world and the first electronic-based market ever created.
Most of the shares traded in the United States everyday invariably get traded at the Nasdaq.
It is an independent subsidiary of the National Association of Securities Dealer, the largest self-regulatory organisation for the securities industry in the United States.
In the second quarter of 1997, the total number of shares traded at the exchange went up to 379 billion and the total turnover to $10,267 crore. The average daily turnover at the exchange touched $160 crore with total traded volume at 59 crore.
The Nasdaq Composite Index closed at 1442.077 points on June 30, 1997, as against the previous quarters close of 1221.72 points, registering an annual change of 220.35 points. This translates into a gain of 18 per cent.
On the other hand, the Nasdaq Industrial Index witnessed a gain of 16.2 per cent during the same period. The only composite index which witnessed relatively poor growth during the ensuing period was Biotechnology, which went up by only 5.2 per cent.
The highest growth was witnessed in the Nasdaq Telecommunications Index which closed at 309.22 points over the previous close of 294.06, a gain of 23.2 per cent.
The Nasdaq National Market went up by 160.24 points to close at 957.30 over the previous close of 797.06, a gain of 20.1 per cent.
During the same period, the NYSE Index closed at 462.89 points over the previous close of 398.55 points, a gain of only 16.1 per cent.
The S&P 500 Index closed at 128 points, witnessing a gain of 16.9 per cent and the AMEX closed higher at 9.5 per cent, while the Dow Jones gained 16.5 per cent as compared against the previous close.