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

 


NZX three-hour trading halt not a 'system overload': CEO

NZX three-hour trading halt not a 'system overload', CEO Bennett says

By Suze Metherell

June 27 (BusinessDesk) - Today's three hour trading halt is not a sign the stock market operator's system is overloaded after the first half of this year has seen more new listings than all of 2013, NZX chief executive Tim Bennett says.

All trading was halted half an hour into the morning session and was initially flagged to resume at 10:45 am after a "restart to the message gateway", however on the restart connection to participants was lost, and eventually trading was moved to the secondary market environment, which took another hour, Bennett told BusinessDesk. This is the stock market operator's second trading halt, and its third technical glitch, this month. It was unclear what had caused today's loss of connection, and work over the weekend would establish whether the issues were interconnected, Bennett said.

The trading halt comes in a week when Serko and Gentrack joined the bourse, while Hirepool, which had been set to list next month, withdrew its initial public offer. So far this year the NZX has had 16 new listings, including seven on the stock exchange and nine on the debt market, compared to 13 news listings last year, 10 of which were stock listings, and 12 in 2012, of which six were stock listings. Bennett said the market has the capability to handle the bigger load, and were not the cause behind the outages.

"Our largest trading days were last year, so it is certainly not to do with system being overloaded," Bennett said. "It's been a terrific week with two IPOs, and this is disappointing."

Other upcoming listings include Scales Corp and IkeGPS, with more rumoured to be in the pipeline.

DeutscheCraigs,chief executive Brett Shepherd, whose firm has managed several of the recent IPOs, said he didn't think the NZX's technical issues would deter companies from listing, or offshore institutions from investing in the local market.

Of the 38.5 million shares traded on the NZX 50 Index, more than 20 million were traded in the first ten minutes of the resumed session. The benchmark was recently at 5138.775. Forsyth Barr broker David Price said the outage was noticed by foreign investors who queried the lack of trading.

"There have been a few issues, we had a long period of no issues and then we've had a few in a short space of time," Price said.

Brian Gaynor, executive director at Milford Asset Management, told BusinessDesk the regularity of these outages was the major concern.

"It happens around the world, you get these things, but it is happening too often with the NZX and I think it dents confidence in the way the organisation is run. It shouldn't have these kind of problems," he said. "They really need to scrutinise and investigate what's wrong, and what they can do to improve it."

Shares in NZX fell 0.7 to $1.34 and have gained 8.9 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news