NZX share trading value climbs

The value of share trading on New Zealand's stock exchange climbed 23% in September, rounding out a quarter when the benchmark S&P/NZX 50 index posted its biggest three-month decline in more than three years.

The total value of equity trading rose 22% to $3.4 billion last month from September 2014, while the total number of trades climbed 29% to 120,305. 

The value was down from $6 billion traded in August, when ASX-listed Origin Energy sold its controlling stake in Contact Energy, while the number of trades slipped from 141,087.

New Zealand's NZX 50 declined 3.5% in the three months ended September 30, its biggest drop since June 2012. Falling commodity prices and fears about emerging economies sapped investors' appetite for risk-sensitive assets. 

Still, it outperformed most of its peers, which were hit harder by the souring sentiment, with Australia's S&P/ASX 200 Index falling 8% in the quarter, Wall Street's S&P 500 Index down 7.9%, and the Shanghai Composite Index slumping about 25%.

The benchmark index ended September 6.4 % higher than a year earlier at 5593. The market value of equity on the NZX rose 6.5% over the year to $96.7 billion, or 40.2% of gross domestic product.

Debt trading on the local stock market picked up in September, with the value traded up 48% to $146 million from a year earlier, on 9.9% more trades at 2918. The market value of listed debt slipped 1.3% to $13.4 billion, or 5.6% of GDP.

About $891 million of new capital was raised across 17 events in September, largely in dual and second issuers, and taking the year to date total to $7.38 billion.

NZX's SuperLife unit grew funds under management 7.9% to $1.33 billion in September from the same month a year earlier, of which $434 million was in KiwiSaver funds. Its Smartshares exchange traded funds had $909 million under management, of which $482 million was held in SuperLife funds.

The stock market's derivatives operations increased lots traded by 203% to 28,542 in September from a year earlier, while open interest jumped 271% to 50,661. The volume of grain traded fell 13% to 531,250 tonnes traded.

NZX shares last traded at 98c, and have dropped 16% this year.

(BusinessDesk)