NZX trading volumes rise in August, as increase in equity trades outweigh decline in debt trading

The volume of trades on the New Zealand stock exchange rose in August as an increase in equity trades outweighed a decline in debt trades.

The number of trades on the NZX [NZX] rose 8.8 percent to 107,104 in August from the year earlier month, according to the stock exchange operator's monthly shareholder metrics. Equity transactions increased 9.1 percent to 104,400 while debt trading declined 2.7 percent to 2,704, the Wellington-based NZX said.

In August this year, some $550 million of new capital was raised on the NZX as businesses including mobile payments company Lateral Corp, logistics and fleet management company Eroad, mobile payment app company Pushpay and cinema software and analytics company Vista Group International listed on the market. In August last year, fuel distributor and retailer Z Energy listed on the market, accounting for the $1.5 billion of new capital listed in that period.

The total value traded in August this year declined 23 percent to $2.7 billion from a year earlier, led by a 23 percent fall in the value of equity trading to $2.6 billion. The value of debt trading advanced 9.1 percent to $90 million.

So far this year, the total number of trades on the NZX is 20 percent ahead of the year earlier although the value traded is down 14 percent. The NZX has benefited from a flurry of new listings, including the partial privatisation of state-owned electricity companies MightyRiverPower in May last year, Meridian Energy in October and Genesis Energy in April this year. However the NZX has said the boom is unlikely to be repeated as future offerings coming to market are expected to be much smaller.

Some $75 million of capital was raised by issuers in August from 12 capital raising events.

The market value of all equity increased 17 percent to $90.9 billion, or 40.2 percent of gross domestic product, while debt market capitalisation edged up 1 percent to $13.7 billion, or 6 percent of GDP.

The benchmark NZX 50 Index increased 15 percent from the year earlier to 5,223 and was recently at 5,218.

Shares in NZX last traded at $1.24, unchanged from the start of the year. The stock is rated an average 'sell' based on analyst recommendations compiled by Reuters.

(BusinessDesk)