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Investors and companies alike can benefit from monitoring the trading volume of companies listed in both the Canadian and German markets.
There is a noticeable pattern of companies with cross listings in the Canadian and German markets experiencing high trade volumes from German exchange listings.
This creates a new spectrum of budding opportunity for many publicly traded companies that have a listing in the German marketplace, but are not utilizing their German listing to their full advantage. There is significant unrealized potential for them to increase their ability to finance, raise awareness and increase buying, and there are also opportunities for investors to benefit.
3 companies with high German trading volumes
92 Resources (TSXV:NTY,FWB:R9G2), for example, traded 22 percent of its total trading in the German exchanges over a 90-day period, which increased its trade volume from 15,236,486 to 19,529,209 with an additional 4,292,723 shares traded in the German markets. This displays the value of monitoring the dual listings for companies like 92 Resources that seek financing in the European marketplace. 92 Resources currently holds a 100-percent interest in the Hidden Lake lithium property, and is listed on the Berlin (BE), Xetra Deutsche Boerse (DB), Frankfurt (FWB), Munich (MU), Stuttgart (SG) and Tradegate (TG) exchanges.*
Power Metals (TSXV:PWM,FWB:OAA1) traded 45 percent of its total trade volume in the German markets over the past 90 days. That equals a total of 41,093,811 shares traded over four German exchange listings. Power Metals is a Vancouver-based exploration company with interests in lithium properties in the US, and is listed on the Frankfurt, Munich, Stuttgart and Tradegate exchanges.
Marapharm (CSE:MDM;FWB:2M0) traded 43 percent of its total volume over the last 90 days in the German market, and is listed on the Berlin Frankfurt, Munich, Stuttgart and Tradegate exchanges. This equates to 16,751,010 additional trades for the company in this period. Marapharm is a medical marijuana producer that operates out of BC.
These figures are a clear indication of the potential benefits companies can reap by monitoring these volumes in the case that they want to access these markets for financing purposes. They show the increasing attractiveness of their stock to investors.
Investors following the German market have an advantage
When an investor or company monitors the market at 6:00 or 6:30 a.m. PST, there is great significance in being able to easily compare what volumes were traded in Germany, as this trading activity often follows through in the Canadian markets. Companies are now more than ever before disseminating their news releases during German market hours; this generates an early warning for investors to buy the stock in Canada. Exposure to company news and updates is positive, and the foundation of pre-existing listings strengthens the prospect of increasing distribution from outside North America.
Ultimately there is value to be found in the increase of global capital flow across exchanges. Trading in multiple countries can also increase liquidity, which allows a company’s stock to trade more efficiently.
*Alternate exchange information:
- Boerse Stuttgart is tailored to retail investors, and is the second-largest securities market after Boerse Frankfurt.
- Tradegate Exchange is a securities exchange for private investors. It has the lowest transaction fees of all European trading platforms.
- Xetra Exchange is a trademark of the Frankfurt Exchange, a venue where majority of the exchanges are transacted through.
By Megan Keevil
Zimtu’s free app for monitoring and utilizing this data was used by the author to acquire the information in the article: https://app.zimtuadvantage.com
Disclaimer: The views and opinions in this article are those of the authors and do not reflect the view of Investing News Network or the company examples provided. The author is employed by Zimtu Capital in Vancouver, and 92 Resources is an equity holding of Zimtu Capital. The author holds no direct investment interest in any company mentioned in this article.
About the author — Megan grew up in Vancouver and has been working in the mineral resource industry for a number of years, both in offices and on site. She has a passion for travel and has spent time living in Australia and the UK. Having returned from living in London last fall, Megan currently works as marketing and client relations associate in Vancouver. She enjoys live music, writing, film, photography and recently started making her own soap products.