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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news