Global stock exchanges see double digit trading value jump

Global stock exchanges have witnessed an unprecedented surge in trading value and volumes in the first half of 2024, with a remarkable 11.7 per cent and 9.6 per cent jump respectively, according to data from the World Federation of Exchanges. This surge in trading activity has led to the highest number of trades for a half-year in the past five years, eclipsing the peaks observed during the challenging times of the Covid-19 pandemic. Nandini Sukumar, the CEO of the World Federation of Exchanges, explained that the increase in investor appetite for listed securities can be attributed to the stability and resilience offered by exchange-traded markets during times of volatility. The surge was not limited to a particular region but was a global phenomenon, highlighting the attractiveness of public markets for investors seeking a stable trading environment. One of the key factors contributing to the surge in trading activity has been the rebound in trading value and volume across equities and exchange-traded derivatives. The data indicates a significant uptick in traded volume, especially in exchange-traded derivatives, with over a 50% growth compared to the previous year. This surge in trading activity reflects investors' trust in exchange-traded platforms during uncertain times, seeking a secure and regulated environment to conduct their trades. The Americas emerged as a significant player in the surge, with the region attracting a substantial amount of trading activity compared to other regions. The American markets, including iconic exchanges like the New York Stock Exchange and Nasdaq, witnessed heightened investor interest, leveraging the deep and diverse pool of investable securities available. The volatility in American markets, marked by recent sell-offs and recoveries, further underlines the region's significance as a global capital market leader. Despite the overall surge in trading activity, the number of initial public offerings (IPOs) saw a decline in the first half of the year, reflecting a long-term structural trend. Companies are increasingly hesitant to go public, leading to a concerning decline in IPOs globally. However, there were notable exceptions, with some remarkable IPOs in the Americas, showcasing the benefits of raising capital in public markets. To address this decline, industry experts stress the importance of collaborative efforts between regulators, governments, and exchanges to create favorable conditions for companies to list and raise capital. Looking ahead to the second half of the year, uncertainties loom large, with geopolitical tensions and upcoming events like the U.S. election adding to market volatility. While the prospect of U.S. monetary easing offers some relief, the overall outlook remains volatile. It is essential for market participants to continue promoting public market participation, as they provide a stable trading platform during turbulent times. The focus on attracting companies to the market becomes crucial for sustained market growth and economic stability. In conclusion, the record surge in trading activity in the first half of 2024 underscores the resilience of global stock exchanges and the continued appeal of public markets to investors. While challenges persist, collaborative efforts and a focus on long-term market sustainability are vital to navigate the uncertainties ahead.