Despite May typically being a weaker month for the TSX Venture, trading statistics point to bullish activity. After falling to almost 900 in mid-May, the TSX Venture is rebounding – up huge in the past few weeks. Record metals prices and rising gold and silver prices are underscoring the move as investors rush back into mining equities.
Trading statistics data released by the TMX Group confirms that Canada’s junior exchange activity, weighted heavily to the mining sector, remains robust. Take a look at the stunning increases below.
Consolidated Trading Statistics – May 2021
Nearly $200 Million Increase in Daily Trading Value on TSXV YTD 2021 vs. 2020
What really sticks out to me is the value of the daily consolidated trading averages on the TSX Venture from May 2020 year-to-date to the same period in 2021. From just $55 million in 2020 to about $248 million in 2021 – the market has enjoyed a 351% increase in the daily value of shares traded in the first five months of 2021 vs 2020. In dollar terms, this equates to almost an extra $200 million worth of consolidated trading – per day!
On an annual basis, this adds up to many billions more than 2020. For example, year-to-date statistics show that in 2021, about $25.5 billion had been traded, compared to just $5.7 billion for the same period of 2020. Incredible. The trading statistics data tells a story of increased demand and liquidity across multiple sectors.
When you read about inflation and rising prices, this is a perfect example. The value of shares traded and the amount of liquidity in the system are far greater than twelve months ago. This speaks to the mindset and actions of the investing public. We see this rush out of cash and into assets across real estate, used cars, and the TSX Venture market.
As the price of everything rises, investors are getting out of cash and into stocks and other assets – hoping to profit instead of losing to inflation. It is essential to note the Venture finished 2020 at 875 and, despite being well off its February highs, as of Friday, June 4th, the exchange is up 100 points on the year.