NZX cash trading grows in July with new listings

NZX chief executive Tim Bennett
NZX Limited 12-month price history (NZX.com)

NZX [NZX] cash trading grew for a second month in July as the pipeline of new listings continued to stoke activity on the local market.

The number of trades rose 20 percent to 112,092 in July from the same month a year earlier, and was up from 105,981 in June, according to NZX's monthly metrics. Transactions worth less than $50,000 were also up by 20 percent to 104,334, and 98,577 in June. The total value traded rose 15 percent to $2.9 billion from July 2013, the same value from a month earlier, and the daily value traded rose 15 percent to $128 million, down from $146 million in June.

Equity trading continued to drive the gains, with total trades up 20 percent to 109,281 from a year earlier, and value up 16 percent to $2.9 billion. Debt trading fell 0.6 percent to 2,811, and the value traded dropped 6.2 percent to $81 million.

A steady number of new listings has underpinned growth in the local market in recent years after the government's partial privatisation programme renewed appetite for firms to go public. Some $890 million of new capital was listed in July, taking the year-to-date total to $4.41 billion. Glass manufacturer Metro Performance Glass, fruit and vegetable exporter Scales Corp and measuring device maker ikeGPS listed last month.

The number of equity securities on the stock market rose 1.8 percent to 169 in July, and was up from 166 in June, while debt securities fell 4.5 percent to 85 from a year earlier, and were unchanged from June. Other securities were unchanged at six.

The market value of all equity rose 17 percent to $89.4 billion, or 39.5 percent of gross domestic product, from a year earlier, while debt market capitalisation increased 0.1 percent to $13.6 billion, or 6 percent of GDP.

Issuers raised $472 million in July across 12 events, of which $22 million was primary equity and $450 million was dual and secondary equity. No new debt was raised in July. So far this year issuer have raised $1.29 billion.

The benchmark NZX 50 index rose 0.5 percent in July to 5167.989 and was up 14 percent from a year earlier. The benchmark index closed yesterday at 5090.685.

Shares of NZX dropped 1.5 percent to $1.29 yesterday, and have gained 4 percent this year. The stock is rated an average 'sell' based on three analyst recommendations compiled by Reuters, with a median target price of $1.27.

(BusinessDesk)

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