Last half of 1990 a struggle for VSE

Trading activity in 1990 on the Vancouver Stock Exchange was up slightly from 1989 in a year of mixed activity which witnessed strong trading volumes and values during the first seven months and a steady decline during the last five months. Volume during the first seven months rose by 25% compared with the same period in 1989 but fell by 20% during the August-December period. Overall for 1990, volume increased by less than 4%.

Value jumped by 50% during the January-July period but fell by 32% during the last five months compared with 1989. For all of 1990, value increased by 6%.

Near the end of January last year, the VSE completely switched over from the traditional open outcry system on the exchange floor to an entirely automated trading system, the first North American exchange to do so, the VSE said.

Volume in 1990 reached 4.1 billion shares. Share value in 1990 totalled $4.1 billion. Transactions for the year dropped by 17% to 1.3 million.

The composite index reached a high of 802.2 on July 6. A steady decline brought the index to a historic low of 505.8 on Dec. 10; by year-end the index had recovered slightly to 527.47. The index declined by 26% from the 1989 close.

At the end of 1990, the market capitalization of the 1,571 stocks included in the composite index was $3.1 billion.

The “top five” companies in 1990 by trading volume were Adrian Resources, Barkhor Resources, Prime Resources Group, Avondale Resources and Gigi Resources.

In 1990, VSE equity trading represented 35% of Canadian volume and 5% of Canadian value.

The VSE added 92 new companies during 1990, and at year-end had 2,305 issues representing 2,104 companies. Of the firms listed, 70% were natural resource companies engaged mainly in the exploration and development of precious metals.

Of the total listed companies, about 30% were U.S.-based or had American assets or operations. More than 60 companies had interests or offices in the Far East.