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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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