Since Virðisbrævamarknaður Føroya (VMF) and OMX Nordic Exchange Iceland (OMX
ICE) signed an agreement providing for the listing of Faroese securities on OMX
ICE in the spring of 2004, pioneering work to promote trading in Faroese
securities has taken place. The positive results of that labour are now
becoming apparent with the listing of Føroya Banki on 21 June and the listing
of Eik Banki today. This makes the number of listed Faroese companies three.
Atlantic Petroleum paved the way by becoming the first Faroese company to list
on OMX ICE on 15 June 2005. Føroya Banki, Eik Banki and Eik Bank Denmark are
also OMX ICE members.
With the increased number of listed Faroese companies, the calculation of a
Faroese share index is now feasible and today a Faroese all-share index is
being launched on OMX ICE. There are two versions of the index, a regular price
index and a total-return index, which returns include dividend payments. The
indexes will be calculated according to a common Nordic method for calculating
such indexes. Further information on the indexes can be found in table 1
(below).
Thordur Fridjonsson, President of OMX Nordic Exchange Iceland: “We are pleased
to add Faroese indexes to our services for the Faroese market. The indexes will
be an accessible benchmark on the performance of Faroese shares. In addition,
OMX ICE expects the indexes to increase interest and trading in the Faroese
shares and, consequently, promote further development of the market.”
Table 1. Faroese share indexes
See attachment.
