Volume, value slip on VSE in 1991

Trading was sluggish on the Vancouver Stock Exchange early in 1991 compared with 1990 but gained momentum during the last four months, when both volume and value surpassed performance compared with the same period in the previous year.

The Vancouver market was influenced by the continued recession, primarily in the resource industry; both volume and value of shares traded experienced moderate declines. Share volume dropped by 11% to 3.7 billion, while value declined by 15% to $3.5 billion. The non-resource sector fared better with gains both in volume and value.

The VSE composite index gained 4% on the year. The composite index ended the year at 547.9, a gain of 11% since the historical low of 493.95 set Jan. 23, 1991.

The VSE’s share of total trading among all Canadian exchanges declined in 1991, with volume dropping to 32% from 35% in 1990. The VSE’s share of total value declined to 4%, down fractionally from 1990’s 5% level. Financings for 1991 were down 26% from 1990’s total, as public offerings by listed companies were down marginally, while initial public offerings and private placements experienced sharper declines.

The top five companies by trading volume were Springer Resources, Cove Resources, Thios Resources, Golden Ring Resources and Barkhor Resources. Altogether 49 companies were newly listed in 1991 compared with 92 in the previous year. In 1991, 241 companies were delisted, compared with 206 in 1990 and 201 in 1989. The total number of companies listed at year-end was 1,915, compared with 2,104 in 1990.

The VSE was admitted last year as an associate member of the world association of stock exchanges, the Federation Internationale des Bourses de Valeurs (FIBV). Formerly a corresponding member, the VSE is now a full participant and joins the Montreal Exchange as a Canadian associate member. The Toronto Stock Exchange is Canada’s full member.