Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Equity trading jumps in NZX cash market

Equity trading jumps in NZX cash market as NZX 50 nears 5-year high

Dec. 5 (BusinessDesk) – Share trading on the NZX jumped by more than a fifth in November, a month that saw the benchmark NZX 50 Index rally to near its highest level in five years, helped by KiwiSaver contributions and offshore demand for higher yields.

Total trades on NZX’s cash markets climbed 21 percent to 80,894 last month from a year earlier to $3 billion, or an average $138 million a day. Trading in equities jumped 24 percent to 77,938, while trading in debt securities fell 21 percent to 2,956. The value of debt trading fell 47 percent to $84 million.

The value of equities on the NZX rose about 20 percent to $65.9 billion, or 32 percent of gross domestic product in November. The market capitalisation of debt securities fell 5.1 percent to $14.7 billion, or 7.1 percent of GDP.

Demand for New Zealand equities has been growing as a world with near record low interest rates make the dividend yield available on local stocks more attractive. For example, Telecom is trading at a dividend yield of almost 13 percent and Goodman Property Trust is at 8.3 percent. By contrast, 2-year term deposits in New Zealand offer around 4.35 percent. US 10-year Treasuries are yielding 1.61 percent.

The NZX 50 Index closed yesterday at 4015.694, slipping for a second day from the highest level since December 2007.

Total equity securities listed on the NZX fell 0.6 percent from a year earlier to 169 and debt securities fell 8.5m percent to 97. There was $166 of equity capital raised last month, of which $36 million was for dual-listed or secondary listed companies. There was $59 million of debt raised.

Shares of NZX last traded at $1.21 and have gained 26 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news