Share trading on the NZX jumped by more than a fifth in November, a month that saw the benchmark NZX 50 Index rally to near its highest level in five years, helped by KiwiSaver contributions and offshore demand for higher yields.
Total trades on NZX's cash markets climbed 21% to 80,894 last month from a year earlier to $3 billion, or an average $138 million a day. Trading in equities jumped 24% to 77,938, while trading in debt securities fell 21% to 2956. The value of debt trading fell 47% to $84 million.
The value of equities on the NZX rose about 20% to $65.9 billion, or 32% of gross domestic product in November. The market capitalisation of debt securities fell 5.1% to $14.7 billion, or 7.1% of GDP.
Demand for New Zealand equities has been growing as a world with near-record low interest rates make the dividend yield available on local stocks more attractive.
For example, Telecom is trading at a dividend yield of almost 13% and Goodman Property Trust is at 8.3%. By contrast, two-year term deposits in New Zealand offer around 4.35%. US 10-year Treasuries are yielding 1.61%.
The NZX 50 Index closed yesterday at 4015.694, slipping for a second day from the highest level since December 2007.
Total equity securities listed on the NZX fell 0.6% from a year earlier to 169 and debt securities fell 8.5% to 97. There was $166 million of equity capital raised last month, of which $36 million was for dual-listed or secondary listed companies.
There was $59 million of debt raised.
Shares of NZX last traded at $1.21 and have gained 26% this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Warminger stood to gain significant bonus, court hears
- Mortgage rates have bottomed, regardless of further OCR cuts
- Where polls stand on the eve of the first US presidential debate
- 'Real housewife' lawyers up, accuses Devoy of bullying, defamation
- Spark says 130,000 Xtra mail address at risk after Yahoo hack
Most listened to
- FMA counsel Justin Smith QC described Mr Warminger’s background and the pressure he was under to perform
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- ASB's Jane Turner discusses what's behind NZ's widest month trade deficit
- Kathmandu's Xavier Simonet and Reuben Casey talk through the retailer's results.
- BNZ's Kymberly Martin and Massey University's David Tripe on mortgage rates.