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

 


NZX cash market trading value falls in first quarter

NZX cash market trading value falls in first quarter as rise in smaller transactions lifts volume


By Suze Metherell

May 1 (BusinessDesk) –The value of cash market trading on the NZX dropped 20 percent in the first quarter while a rise in smaller transaction drove a jump in overall volumes on the New Zealand bourse.

Total trades rose 35 percent to 313,903 in the three months ending March 31 from a year earlier, NZX said in a statement. Trades of less than $50,000 jumped about 39 percent to 292,895. The value traded dropped 20 percent to $8.1 billion while daily average value traded fell 21 percent to $133 million.

Of that cash market trading equity transactions dominated, with value traded declining 20 percent to $7.9 billion and the number of trades rising 37 percent to 307,458. Debt transactions fell 9 percent to $209 million and volume declined 12 percent to 6,445 trades.

The first quarter saw no new listings, after a boom 2013 that was led by the government taking electricity companies MightyRiverPower and Meridian Energy public. NZX has warned it won’t be able to replicate last year’s pace of listings in 2014, although it welcomed Genesis Energy last month and that stock has since climbed 23 percent.

Trading volumes have been climbing as the growth of retirement savings through KiwiSaver generated funds for investment, with a portion finding its way to the New Zealand equities market.

“The programme has been critical for the development of New Zealand’s capital markets, with the newly listed companies now comprising 7.3 percent of total market capitalization, which combined with the impact of KiwiSaver and an increased savings rate, is underpinning a structural shift in the capital markets,” said Tim Bennett, NZX chief executive.

He said NZX was talking to other companies considering listing, from a range of industries including tourism, agriculture, energy and transport.

In the first quarter, listed equity securities rose 0.6 percent to 164. Listed debt securities declined 11 percent to 85, while overall listed securities fell 3.8 percent to 255.

Capital raised in the quarter climbed 147 percent to $480 million, as the number of capital raising events rose 2.3 percent to 45 in the latest three months. New capital listed rose 328 percent to $260 million.

The market value of all equity rose 24 percent to $87.4 billion, or 39 percent of gross domestic product in the quarter, while the debt market was valued at $13.5 billion or 6 percent of GDP, down 5.8 percent on the previous year.

Derivatives trading grew in the first three months of the year, with lots traded up 156 percent to 12,395 while open interest, a measure of activity and liquidity, fell 22 percent to 3,573 from the first quarter in 2013.

Shares in the stock market operator were unchanged at $1.25 before trade opened this morning and have declined 6.7 percent in the past year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news