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

 


Any bolt-on acquisitions at NZX to be less than $5 million

Any bolt-on acquisitions at NZX to be less than $5 million, Bennett says

May 3 (BusinessDesk) – NZX wants to boost its exposure to agriculture and commodities and the company is on the hunt for bolt-on acquisitions less than $5 million, says chief executive Tim Bennett.

“We continue to look for small add-on acquisitions,” Bennett told shareholders at their annual meeting in Wellington. “Ultimately, of course, we would like to offer a broad range of soft commodity risk management products.”

Results have been mixed to date. Clear Grain Exchanges in Australia and the NZX Dairy Futures had “mixed results” over the past six to 12 months.

Bennett says the Grain Exchange’s performance was hurt by the dynamic of the harvest, which was smaller, while prices were higher earlier in the season.

The Dairy Futures haven’t sparked yet. Some potential US investors face regulation at home preventing them from investing in the market, Bennett said.

“There’s a lot of positioning in the physical market but we have not seen that flow through into the futures market,” he told BusinessDesk after the meeting.

None of that has dissuaded NZX from betting on the sector for growth.

“We continue to believe the growth upside is substantial,” Bennett said at the meeting. “We are therefore spending a disproportionate amount of resources in growing these businesses.”

Last week, the stock exchange announced plans to extend its dairy futures trading hours to capture the Northern Hemisphere trading session. It offers futures on whole milk powder, skim milk powder and anhydrous milk fat, and options on whole milk powder. There were last around 10 offers to buy or sell the five whole milk futures being bid.

The firm's shares fell 0.8 percent to $1.33 on the NZX today and have gained 12 percent this year.

NZX today said 2013 is the last year in which it will be tied to a formula of cents per share growth in dividends, and payments in 2014 will depend on conditions at the time.

Sales in the first quarter rose 4.3 percent to $14.3 million, led by gains in securities clearing and market operations, up 23 percent to $1 million and 26 percent to $3.05 million respectively.

Sales of securities information fell 8 percent to $2.1 million and sales of Agri information declined 8 percent to $2.7 million, which it said reflected a drop in rural advertising caused by drought. Listing revenue rose 4 percent to $2.3 million.

Total trade in the cash market rose 14 percent to 232,141 trades in the first quarter from a year earlier, while the value of trading surged 54 percent to $10.1 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Development: Screen Precinct Earmarked For Hobsonville Point

Auckland Council’s Auckland Development Committee has today passed a recommendation to create a screen precinct on council-owned land at Hobsonville Point. More>>

ALSO:

Scoop Business: NZ Business Confidence Plummets To Lowest Level Since GFC

New Zealands business confidence plunged to the lowest level in three years in the second quarter as companies became pessimistic about profitability expectations. More>>

ALSO:

Oceans: NZ Jumps Into International Shark Agreement

New Zealand has boosted the protection of sharks by signing the Memorandum of Understanding on the Conservation of Migratory Sharks. More>>

ALSO:

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news