Capital markets retain healthy glow in H1, according to WFE

The buoyancy seen in 2020 continued into 2021, thanks to 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, according to the World Federation of Exchanges (WFE) first half report card.

Pedro Gurrola-Perez, Head of Research, WFE.

“What we see in the data for the first half of 2021, with many indicators reaching record levels, is a confirmation of the growth trend that we observed at the end of 2020 and which correlates with the economic bounce back observed across many countries,” said Pedro Gurrola-Perez, Head of Research, WFE.

He added, “ While we still need to be cautious, given that significant uncertainties remain, this is positive and reflects the substantive role that exchanges are playing in the economic recovery.”

The report found that domestic market capitalisation rose 6.5% in the first six months of the year compared to December 2020, surpassing the $116 bn mark for the first time.

Equity markets reached record levels of value traded at $78 trn while volumes traded stood at 21.6 bn.  In March alone markets added $4.85 trn.

Meanwhile, capital raised through initial public offerings (IPOs) rose 83.7% relative to the second half of 2020, setting new records in the Americas of $252.5 bn and EMEA regions of $45.8 bn.

While globally there was a  6.2% dip in the number of listings in H1, the average size of an IPO surged by 96%, to $372.75 m.

The Americas led the charge, with the region  recording a new high of 256 IPOs listings in H1 2021.

In June 2021 alone, NYSE listed 17 IPOs, which raised $157.8 bn. This set a new record in the average size of an IPO at $986.21, a significant hike than the previous record of $363.71m in the second half of 2020.

Exchange traded derivatives (ETDs) also saw strong trading in all contracts except for currency futures and exchange traded (ETF) futures.

The report showed that in all regions: volumes rose 18% compared to H2 2020 amounting to a record 29.24 bn contracts traded.

Volumes of interest rate and ETF options jumped 68.6% and 44.8% respectively.

©Markets Media Europe 2021

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