Record Value, Volumes Traded in Equity Markets
The World Federation of Exchanges, the global industry group for exchanges and CCPs, published its first-half market highlights.
The data for the first half of 2021 confirms the growth trend that we observed at the end of 2020, with many indicators reaching record levels, particularly in the Americas. The roll-out of the Covid-19 vaccines, the additional stimulus packages approved by governments, the savings accumulated during the pandemic, and an increased confidence in the economic recovery boosted the markets.
Compared with H2 2020:
- Domestic market capitalisation increased 6.5%
- The value of share trading and the number of trades increased 10% and 8.2%, respectively.
- The capital raised through IPOs registered an increase of 83.7%. The average size of an IPO almost doubled.
- Exchange traded derivatives volumes rose 18%.
Compared to H1 2020:
- Domestic market capitalisation rose 34.3%
- The value of share trading and the number of trades went up 16.9% and 18.8%, respectively
- The capital raised through IPOs recorded an increase of 426.9%. The number of IPO listings went up 118.9%. The average size of an IPO increased 141%
- Exchange traded derivatives volumes rose 36%.
According to the WFE’s statistics, the key trends of H1 2021 are as follows:
- Domestic market capitalisation increased 6.5% compared to December 2020, surpassing the 116 USD billion mark for the first time.
- Equity markets reached record levels of value traded (78 USD trillion) and volumes traded (21.6 billion trades). In March alone markets added 4.85 USD trillion.
- The capital raised through IPOs registered an increase of 83.7% relative to H2 2020, setting new records in the Americas (252.5 USD billion) and EMEA regions (45.8 USD billion).
- While globally there was a decline of 6.2% in the number of listings, the average size of an IPO increased by 96%, to 372.75 USD million/IPO.
- The Americas led the positive trend in IPOs, with the region listing a record of 256 IPOs in H1 2021. In June 2021 alone, NYSE listed 17 IPOs, which raised 157.8 USD billion. This set a new record in the average size of an IPO in the Americas (986.21 USD million/IPO), significantly larger than the previous record of 363.71 USD million/IPO registered in H2 2020
- A record in capital raised monthly through IPOs was established by NYSE in May 2021 (24.55 USD billion). This level of capital raised by IPO in one month was not seen on the world markets since Saudi Aramco’s listing on the Saudi Stock Exchange (Tadawul) in December 2019.
- Non-IPO listings were also at record-high levels globally (1,113) and in the Americas (115) and APAC (839). EMEA recorded 159, below its previous record of 390 reported in H2 2017.
- Capital raised by already listed companies reached new heights of 403.46 USD billion globally and in the Americas (125.75 USD billion).
Exchange traded derivatives (ETDs)
- Derivatives trading rose for all contract types except currency futures and ETF futures, and in all regions: volumes rose 18% compared to H2 2020 amounting to a record 29.24 billion contracts traded. Volumes of interest rate and ETF options increased 68.6% and 44.8% respectively.
- National Stock Exchange of India recorded the highest volume of stock index options (5.19 billion contracts).
- Single stock futures contracts traded on B3-Brasil Bolsa Balcão surged by 749.1%, relative to H1 2020.
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