Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

In the past eight days, two more TSX-listed technology companies have been picked off by acquirers. (Frank Gunn/FRANK GUNN/THE CANADIAN PRESS)
In the past eight days, two more TSX-listed technology companies have been picked off by acquirers. (Frank Gunn/FRANK GUNN/THE CANADIAN PRESS)

Canadian stock market volume slump deepens Add to ...

You may not see it in the price of Canadian stocks, which have been climbing, but traders are fleeing the Canadian stock market in droves.

New numbers Friday from Canada's biggest stock market show that by every measure, activity is down from 2011 even as broad market indexes climb in value.

Volume traded numbers on the Toronto Stock Exchange fell in February from January, and declined precipitously from 2011 totals.

More related to this story

TMX Group Inc. , owner of the TSX, said that daily average volume of stock traded on the TSX is down 21 per cent so far in 2012. The average value is down 19.1 per cent, and the number of transactions is down 1.7 per cent.

Volume was down 3 per cent in February from January.

All this as the main TSX index is up more than 5 per cent year to date. Where has the volume gone?

Not likely to other Canadian markets. TSX has largely stabilized its market share at about 62 per cent of all Canadian stock trading by value, while its share of volume has been rising.

What's happening in TMX numbers reflects a decline in activity across all markets as investors of all types cut back on buying and selling stocks.

Retail investors have all but dropped out of the market, say some traders, disheartened by bouts of tremendous short-term volatility amid flat long-term returns. High frequency trading activity is also down, falling with overall volumes.

For brokerage houses that depend on per-share trading commissions, the numbers signal that 2012 is going to be a tough year for sales and trading desks.

Follow on Twitter: @boyderman

 
Security Price Change
X-T TMX Group 57.29 0.09
0.157 %
Add to watchlist
Live Discussion of X on StockTwits
More Discussion on X-T

Topics:

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories