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

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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