TSX-V H1 2024 Market Update – An Abysmal Start to the Year

The first half of 2024 has been an abysmal start to the year for the TSX Venture Exchange (TSX-V) across all fronts, with the majority of metrics well below their 12-year average.

New Issues

The number of new issues (IPOs) in all sectors reached a nine-year low, totalling just 45, down 4% on the same period last year, and well down compared to a 12-year average of 76 (Figure 1).

Source: Data collected by MMRC

The amount of money raised by these news issues was the lowest level in at least 12 years, with just C$3 million raised in the first six months of the year across all sectors (Figure 2). This is down 66% on the same period last year and compares to a 12-year average of C$52 million. The average amount raised by new issues was just C$0.1 million.

Source: Data collected by MMRC

Secondary Issues

The value of secondary issues during the first half of this year was also down on the same period in recent years, at C$2.0 billion, the lowest level since H1 2019 (Figure 3). This compares to a 12-year average for the TSX-V during the first half of the year of C$2.8 billion and is down 68% from the 2021 peak of C$6.2 billion.

Source: Data collected by MMRC

Trading Values

Trading values on the TSX-V for the first six months of the year were down 11% on the same period last year, totalling C$6.7 billion (Figure 4). This compares to a 12-year average for the first six months of the year of C$10.9 billion. Trading values in H1 2024 were down 77% from their H1 2021 peak of C$28.7 billion.

Source: Data collected by MMRC

Number of Listed Companies and Market Value

The number of companies listed on the TSX-V at the end of H1 2024, reached its lowest level in at least 12 years, at 1,630 (Figure 5). This is down 3% on the same period the previous year and compares to a 12-year average for the exchange of 1,811.

These companies' total market value (cap) increased 3%, compared to the same period last year, totalling C$78.4 billion (Figure 5). This is down 22% from its H1 2021 high of C$100.7 billion.

Source: Data collected by MMRC

Turn Over Ratio

The turnover ratio is a proxy for the relative liquidity of a market. It is the ratio of trading values to market values, a higher turnover ratio means higher liquidity, and a lower turnover ratio means lower liquidity.

The turnover ratio for the TSX-V during the first half of the year reached its lowest level in at least 12 years at 0.09 (Figure 6). This is well below the 12-year average of 0.22 and is down 13% on the same period last year, as well as being down 77% from the H1 2018 high.

Source: Data collected by MMRC

Conclusion

This data will come as little surprise to the majority of participants in the TSX-V this year. Those who have lived through the difficult market conditions during the start of 2024, will be all too familiar with its woes, though having this data is useful for those looking to make strategic decisions regarding their business or investments.

Interestingly in both 2016 and 2020, a poor first half of the year was followed by a stronger second half of the year, though for 2019 the converse was true, what will that be the case for H2 2024, only time will tell.

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