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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news