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NZX cash trading volumes soar in November

NZX cash trading volumes soared in November, the 15th straight monthly gain, in a period that included the stock exchange's biggest ever trading day accounting for almost a fifth of monthly turnover.

The total number of trades rose to 141,143 in November from 114,334 in October, and was up 75 percent from the same month a year earlier, according to NZX's monthly metrics. The value of trading was $5.4 billion in November from $3.8 billion in October, and was up 77 percent from the same month in 2012. The daily average value traded was $256 million, 85 percent higher than a year ago, and up from $175 million in October.

On Nov. 26, the stock exchange recorded its biggest ever trading day without any new listing or major sell downs, with some $926.8 million of stock changing hands in 12,050 separate transactions, about 17 percent of the total value traded in the month.

Share trading continued to account for the bulk of the activity, with equity transactions up 77 percent to 138,242 from a year earlier, worth $$5.2 billion. Debt trading continued to decline, falling 1.9 percent to 2,901 in November from the same month in 2012, worth $154 million, which was up 82 percent.

The stock exchange has benefited from a raft of new listings this year, including the government's partial privatisation of MightyRiverPower and Meridian Energy as well as the listings of petrol station chain Z Energy, dairy processor Synlait Milk, software developer Wynyard Group and search engine developer SLI Systems. Aviation engineering firm Airwork is expected to be the last listing for the year, sneaking in before Christmas.

Issuers raised $35 million of capital in November, taking the year to date value to almost $3.4 billion. Of the monthly raisings, $36 million was in primary and dual and secondary equity, and $198 million in debt.

About $100 million of new capital was listed in November, taking the year to date total to $7.3 billion, more than twice the value of capital raised.

As at Nov. 30, the stock market's equity capitalisation was $82.9 billion, or 38.5 percent of gross domestic product, down slightly from October when it accounted to almost 40 percent of GDP. The benchmark NZX 50 index fell 2.3 percent to 4794.95 in November, and was recently at 4754.158.