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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news