A return to pragmatism created a rebounding effect for Canadian equities in 2025, says Jesse Forster, senior analyst in market structure and technology at Crisil Coalition Greenwich.
In preparing a report summarizing the performance of the Canadian markets in 2025, Forster says he found support for organic growth in equities thanks to maintenance flow and rotations compared to an artificial effect.
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“[The sentiment] I think came through in the Canadian side was, ‘Now is the time to rebuild, we’ve been under pressure so long.’”
The report found in 2025, Canadian equities produced about a 30 per cent market gain, a 36 per cent jump in trading volumes and a six per cent increase in broker commissions, compared to the previous 12-month period.
It noted despite this substantial increase in Canadian markets, institutional investors remain highly selective in the allocation of commissions among competing brokers. These investors are pursuing to extract maximum value from every dollar spent, the report said.
Broker capital commitment — particularly for episodic liquidity and reducing shortfall in tougher names — remains more relevant to Canadian institutional investors compared to U.S. peers, the report said.
After speaking to brokers and buy side institutions, Forster describes the Canadian equities market as optimistic. “We’re on the other side of the [coronavirus] pandemic lockdown . . . . Most brokers are back to the office four, if not five days a week.”
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