NZX cash trading gains for 14th straight month in September
NZX cash trading gains for 14th straight month in September to $3.4 billion
By Tina Morrison
Oct. 3 (BusinessDesk) – Cash trading on the New Zealand stock exchange accelerated for the 14th straight month in September.
Total trading of $3.4 billion in September was up 33 percent from a year earlier and continues a trend of monthly gains since August 2012, according to NZX’s shareholder metrics. Total trades climbed by 48 percent to 107,782 for an average daily value of $164 million. Share trading accounted for most of the transactions, with just 2,582 debt trades worth $84 million.
The stock exchange has benefited from a raft of new listings this year, including the government’s partial privatisation of MightyRiverPower as well as the listings of petrol station chain Z Energy, dairy processor Synlait Milk, software developer Wynyard Group and search engine developer SLI Systems.
A further boost to the market is expected with the government’s sale of its 49 percent stake in Meridian Energy, which is scheduled to list later this month.
About $312 million in new capital was raised by the stock exchange’s issuers in September in 23 transactions. Of that, $109 million was in primary equity and $203 million in dual and secondary equity.
NZX’s shares rose 0.8 percent to $1.26 and have gained 3.3 percent this year. The stock is rated an average ‘sell’, based on three analyst recommendations compiled by Reuters, with a median target price of $1.29.