In this article we examine trends in equity, exchange trade products (ETPs) and derivatives markets in Q1 2019. We compare metrics of market valuation, investment flows and trading activity in Q1 2019 to Q1 2018. We also see how markets fared in Q1 2019 when compared to the last quarter of 2018 (Q4 2018).
Domestic market capitalisation at end Q1 2019 was 84.7 trillion USD.
- Market capitalisation was up 12.2% on end 2018. This was due to a rebound in market valuations across all regions after a sharp decline in Q4 2018.
- However, market capitalisation was still down 2.8% on Q1 2018, due to declines in all regions except the Americas.
Value of trades in equity shares was down 14.9% and 10.1% on Q1 2018 and Q4 2018 respectively. This was due to declines across all regions. The only exception was the Asia-Pacific region where Q1 2019 volumes were up 35.3% on Q4 2018.
Number of trades in equity shares (volumes) were up 5.9% and 2% respectively on Q1 2018 and Q4 2018 respectively. The uptick on these quarters was entirely driven by the Asia-Pacific region where volumes were up on Q1 2018 (+16%) and Q4 2018 (+21.6%). The Americas and EMEA region recorded a decline in volumes on Q1 and Q4 2018.
New listings and investment flows through IPOs saw a sharp decline across all three regions when compared to Q1 and Q4 2018.
- New listings through IPOs in Q1 2019 were down 47.2% and 49.6% respectively on Q1 and Q4 2018.
- Investment flows through IPOs were down 64.1% and 72.9% on Q1 and Q4 2018.
Exchange Traded Products (ETPs)
Value of trades in ETPs in Q1 2019 was down on both Q1 2018 (-17.2%) and Q4 2018 (-29.5%). The trend of a decline in value traded on these quarters was observed in all the three regions.
trading volumes were also down 7.3% and 27.3% respectively on Q1 and Q4 2018. Volumes were down in all three regions on both quarters except for the Asia-Pacific region where volumes were up 2.5% on Q1 2018.
Trends in global derivatives volumes varied by asset class:
- While single stock options volumes were up 2.8% on Q1 2018, they were down 29.9% on Q4 2018.
Single stock futures volumes were up on both quarters, 35.6% and 0.05% on Q1 and Q4 2018.
Stock index options volumes were up 27.3% on Q1 2018 and were down 2.5% on Q4 2018.
Stock Index futures volumes were up 8.4% on Q1 2018, but down on Q4 2018 (-11.8%).
ETF derivatives (options and futures) volumes in Q1 2019 were down on both Q1 2018 (-14.9%) and Q4 2018 (-10.1%).
- While currency options volumes were up on Q1 (+44%) and Q4 (+11.3%) 2018, currency futures volumes were down 6% and 20.9% on Q1 2018 and Q4 2018.
- Both interest rate options and futures recorded a fall in volumes. Interest rate options volumes were down 11% and 2.8% on Q1 and Q4 2018, while interest rate futures volumes were down 19.4% and 17.5% respectively on those quarters.
- While commodities options were up 5.2% on Q1 2018, they were down 20% on Q4 2018.
- While commodities futures volumes were up 20.1% on Q1 2018, volumes were down 5.3% on Q4 2018.
*Stock Index Futures volumes exclude Cboe Futures Exchange
*For more details on trends in derivatives volumes by region please view the WFE monthly statistics reports.