NZX trading activity increases in October amid surge in demand for equities
The total number of trades rose 1.7% to 123,378 in October from the same month a year earlier.
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The volume and value of trading on New Zealand's stock exchange [NZX] increased last month amid surging demand for equities in a low interest rate environment.
The total number of trades rose 1.7% to 123,378 in October from the same month a year earlier, while the value increased 49% to $4.3 billion, Wellington-based NZX said in its monthly shareholder metrics. Daily average trades increased 6.5% to 5875, while the daily average value jumped 56% to $207 million.
The benchmark S&P/NZX 50 Index booked its best month in October since the global financial crisis, climbing to record levels, as volatility in international markets abated, renewing the demand for returns on equities as low interest rates persist. Within the index, the month's rally was broad-based, with 45 stocks gaining, four declining and only Trade Me Group, the online auction house, unchanged.
Trading in equities continued to outstrip demand for debt securities. The number of equity trades increased 2.1% to 120,951 in October from the year earlier month, while the value increased 51% to $4.2 billion. In the debt market, the number of trades slipped 15% to 2427, while the value traded fell 3.6% to $100 million.
The value of NZX's equity market climbed 13% to $104.2 billion in October from the year earlier month, or 43.3% of gross domestic product. The number of listed equity securities slipped 0.6% to 171.
The value of NZX's debt market advanced 2.5% to $13.5 billion, or 5.6% of GDP. The number of listed debt securities fell 1.2% to 82 from the year earlier.
Shares of NZX last traded at 96c and have fallen 18% so far this year.
(BusinessDesk)
Tina Morrison
Wed, 04 Nov 2015
Wed, 04 Nov 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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NZX trading activity increases in October amid surge in demand for equities
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