Forum Archive Index - March 2000

["G Christie" <bayvu@ihug.co.nz>]

Good on you. The brokers blame the NZSE who in turn only fudge the issue
because they're all making a fortune out of the individual retail investor.
Why else won't they give you trading depth? One of the lovely ladies that
takes our orders once tried to tell me my computer wouldn't be powerful
enough to handle the depth! She said " You should see mine- it's huge"- ----
Cheers
-----Original Message-----
From: Moose <aorang@voyager.co.nz>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Wednesday, 15 March 2000 21:15
Subject: [sharechat] Market Depth - copy of letter sent to Dr M Cullen


To follow is the text of a letter I sent last week to Dr Cullen,
Minister of Finance. Like Tony I will post any reply received.

Given the head in the sand reply he got though it will be a long time
before any regard is given to NZ small investor concerns.

Moose.

Honourable Dr M. Cullen,
Minister of Finance,
Parliament Buildings,
WELLINGTON.

Dear Sir,

Re your recent comments regarding the NZ Stock Exchange

As a keen stock market investor I was heartened to read your
recent critical comments of the
NZSE operations, performance and attitude.

I wish to bring to your attention a matter that affects me and I know
affects a lot of other regular
NZ stockmarket investors that is causing us to trade offshore in
preference to New Zealand.

Through the power of the internet I am able to buy and sell shares
listed on the Australian Stock
exchange using an Australian based online broker. Their service is
excellent, and they freely offer
to all their clients market depth information. That is, at any time I
can find out details of the
number of buyers/sellers in the market for any share, the price
levels they are offering/asking and
the number of shares in the market.

This is a great tool used to assist in determining my purchase/sale
price target for any transaction.
Many overseas internet sites also make this information freely
available.

In New Zealand, however, the NZSE let brokers access market
depth but will not let them offer it
to their clients or the general public. Brokers when approached
about this all say they want to
make it available but the NZSE board of management refuse to
allow it.

The affect of this is that invariably shares are bought/sold at a price
that is not the optimum that
could have been paid/obtained if this information had been available.

The alternative that is being adopted by myself and many others is
to say “to hell with the NZ
market” (that is performing poorly anyway), transfer our funds to an
overseas Bank Account
and invest in their market direct ( that is at present performing)!

Obviously many things determine peoples investment decisions,
however, the NZSE is not
encouraging small local investors to utilise their services the way
overseas exchanges are. Until
they become more user friendly the whole of New Zealand is being
disadvantaged economically.

I know this is a small matter in the great scheme of things but as I
said earlier it has caused me
and other small investors to shift funds out of New Zealand to our
economy’s disadvantage. Also,
it is something that can easily be fixed.

I believe their “old boy club” needs a good “boot” and I hope your
comments were not just
politicking but more a signal that this may at last happen. If so,
some pressure also applied to the
NZSE on the market depth problem would be great for New Zealand
investors.

Good luck and good hunting to you.

Yours faithfully,











Moose

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