The number of shares traded on The Toronto Stock Exchange (TSE) jumped by 25.5% to 7.3 billion in 1992, according to a recent report from the exchange.
Compared with 1991, the total value traded was up 12.4% to $76.2 billion. “There’s always increased activity in times of volatility,” said ScotiaMcLeod’s Fred Ketchen. He said false hopes about the economy early in the year and constitutional uncertainties created a volatile environment for Canadian markets in 1992.
Heavy trading in the diamond stocks and junior oils, combined with the fall of some former blue chips (including Stelco and Bramalea) into the penny category, explains why the increase in trading volume in 1992 was more than twice that of value, he added.
During the last half of the year, the diamond exploration stocks — including Lytton Minerals (TSE), Pure Gold Resources (TSE) and United Reef Petroleums (TSE), were among the exchange’s most active traders.
“The diamond stocks made a difference,” said Ketchen. “That turned out to be quite a story at the end of 1992.”
In December, 1992, 18.2 million shares of United Reef changed hands, making it the second most active stock that month. Lytton was fourth on the list, just ahead of Toronto Dominion Bank, as 11.4 million shares changed hands.
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