VSE breaks records in volume, value

Like the Toronto Stock Exchange, (N.M., Jan 12/87), the Vancouver Stock Exchange broke records in 1986.

Volume traded at 3.5 billion shares, establishing a new high surpassing by 12.9% the previous record of 3.1 billion shares set in 1983.

The value of shares traded, at $4.5 billion, eclipsed the 1980 record of $4.4 billion by 2.3%; while the number of transactions for the year, at 2.3 million, registered a modest gain over the previous high set in 1983.

The 1986 volume and value levels were 26.9% and 64.9% higher, respectively, than the 1985 levels, while the number of transactions rose 36.9% from last year.

On Sept 5, the VSE Index closed at an all-time high of 1471.35, rising 14.7% above the 1985 close of 1282.95. Although the index fell back at the year-end to close at 1353.63, the closing level showed a 5.5% increase over the previous year.

Total dollars raised by VSE-listed companies in 1986 also established a record at $705.1 million, more than double the previous high of $348 million set last year.

Private placements accounted for 75.9% of the financing dollars, up significantly from 57% in 1985; secondary financings contributed 16.3% versus 35.8% in 1985, while initial distributions rose to 7.8% from 7.2% the previous year.

Of the 1,924 companies listed on the VSE at year-end, 182 were new listings compared to 230 in 1985.

The most important influences on the Vancouver exchange during last year were the worldwide trends towards computerization, use of telecommunications, internationalization, and increased competition, as well as the continuing need for equity capital, all having their impact on the short and long term for Vancouver.

Perhaps the most important single decision made in 1986 which will affect the VSE and its future direction was that to proceed with automation of the trading system.

In November the Board of Governors approved completion of an automated system, for implementation in February, 1988.

The $6-million project is claimed to offer major advantages to the Exchange, its members, listed companies and investors, including improved credibility, more accurate and timely quotations, better depth-of-market information and faster execution of trades.