The Bermuda Stock Exchange this week reported that its domestic trading volume in 2004 fell slightly short of the previous year while the value of the shares traded came in higher.

Yesterday, the BSX said domestic trading volumes in 2004 stood at 2.6 million shares compared to 2.8 million shares in 2003. However, the shares that traded last year were worth $65 million compared to the $50.8 million from 2003.

Butterfield Bank, the largest issue on the Exchange ? with a market capitalisation at year end of $1.04 billion ? saw its shares finish the year at $40.50.

Although that is lower than the bank?s 52-week high of $42.05, shareholders are actually better off after a one for ten share dividend given out by the bank in August.

The bank said yesterday that at year end, Butterfield shareholders will have seen their shares appreciate 1.25 percent, and with dividend reinvestment throughout the year, the increase in shareholder value for 2004 was 4.9 percent.

Meanwhile, the Royal Gazette/BSX Composite Index ended the year up 8.2 percent at 3,208.05 points compared to where it ended in 2003 at 2,965.34 points.

The Island?s stock exchange also reported gaining new issuers during the year with the BSX ending 2004 with 381 issuers on its books. That number compared to there being 383 issuers listed on the BSX at the end of 2003.

Included in the new listings last year were HSBC Holdings plc, Aspen Insurance Holdings Ltd. and American Safety Insurance Holdings Ltd. The BSX reported that there were six new equities and 28 collective investment vehicles listed in 2004.

Last month, Long Botham Boats ? the parent company of Henry VIII Pub and Restaurant and an owner, through a subsidiary company, of Robin Hood Pub and Restaurant ? said it wished to delist its shares from the BSX but the outcome of a shareholder vote on that matter has not yet been made public.

The BSX International Crossing Market ended the year with 3.3 billion shares traded with an associated value of $119 billion. The total market capitalisation of the BSX as at 31 December 2004 (excluding fund listings) stood at approximately $120 billion of which $1.85 billion represented the domestic market.

In terms of developments in 2004, the BSX crossed an important technical milestone when it became a fully electronic market with its implementation last spring of the Bermuda Securities Depository (BSD).

This means that BSX related transactions are now executed electronically and in line with sophisticated, modern global market practices.

BSX president and chief executive officer Greg Wojciechowski said yesterday: ?The Bermuda Stock Exchange is delighted to report the full implementation of the BSD. Operationally, the completion of the BSD now places the BSX on the same footing as the world?s modern stock markets in respect of transaction processing and risk control.

?Today, the Exchange?s operating environment is far safer than it ever has been which directly translates into a greater level of protection for investors in BSX listed securities.

?We are extremely proud of the Exchange model that had been developed and implemented in Bermuda and grateful to the Government, BMA, investment community and listed issuers for supporting the move to modern market regulation and operations which of course ultimately benefits all users of the Bermuda market and the jurisdiction,? he continued.

Looking back on the Exchange?s performance in 2004, Mr. Wojciechowski said: ?I am generally pleased with the performance of the BSX this year, the BSX/RG Composite index, which is weighted on a market capitalisation basis, closed at 3,208.05, up over eight percent compared with 2003.

?Interest in listing on the BSX strengthened internationally and locally, which resulted in the number of new listings reported while trading volumes remained steady. These results emphasise the value that a modern, well regulated stock exchange and capital market brings to Bermuda.?

Mr. Wojciechowski concluded: ?The BSX is eagerly looking forward to 2005 and the exciting developments that are anticipated. I have every confidence that our dedicated team of stock exchange professionals is in a strong position to support the continued development of the Exchange and the domestic financial services industry to ensure that Bermuda?s reputation and as the world?s premier offshore business jurisdiction is maintained.?