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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news