Strong VSE trading trend continues into 1994

Market trading maintained its strength and stock prices rose on the Vancouver Stock Exchange (VSE) in January as the volume and value of shares traded surpassed December figures. Overall, the market continued the strong trading activity established throughout 1993.

Volume was 496.2 million shares and value, at $645 million, surpassed last month’s $502 million by more than 28%, reaching its highest level in six months. Daily average volume and value figures rallied to attain a 7-month high at 24.8 million shares and $32.3 million, respectively. The average price per share rose 15 cents from December, to $1.30. Investor interest in the financial markets was fuelled by yet another decrease in the historically low interest rates.

The VSE composite index closed the month at 1145.97, its highest level since 1988. The composite increased steadily during January, posting gains on 16 of the 20 trading days and adding 7% to December’s close. The resource and venture indexes posted their highest levels since their inception in May, 1990. The resource index achieved 1779.66 on Jan. 17 and the venture index reached 883.06 at the closing bell on Jan. 31. The resource index added 9% over December, to close at 1764.94, and was up more than 143% from January, 1993. The commercial-industrial, meanwhile, slipped marginally from last month, to close at 1095.55.

The senior board maintained its share of the total volume of shares traded at 16%, but value dropped slightly to 33% from last month.

The VSE’s share of total volume traded on all Canadian exchanges dropped to 19% from 23% last month as the Toronto Stock Exchange continued to break trading records. The value of shares traded also dropped, to 2.6% of the total.

Financings jumped 33% over December to $107 million, up from $80 million last month, with the largest increase coming from warrants exercised by brokerage firms.

Of the 1,638 issues listed on the exchange during January, 234 posted new highs and 71 posted new lows. The five most active stocks by volume were: Auriga Resources (venture), All-North Resources (resource), War Eagle Mining (venture), Mill City Gold Mining (venture) and Silverstone Resources (venture).

January was a quiet month for listing changes on the VSE, with only two new companies commencing trading and no reverse takeovers made. In comparison, December, 1993 saw nine new listings and two reverse takeovers. January is a traditionally slow month for this type of activity; at the beginning of 1993, for example, there were no new listings and two reverse takeovers. (A reverse takeover occurs when a non-listed company acquires control over one already listed on the exchange.)

Three companies were upgraded to the resource section of the senior board and one to the commercial-industrial section. January’s upgrades bring to 322 the number of senior board companies. Three companies were upgraded to the board last month, compared with four in January, 1993.

The corporate finance and listings department accepted 19 statements of material facts (qualifying financings through VSE facilities), compared with seven last month and six in January, 1993.