NZX trading volumes rebound in August

Tuesday 1st September 2009

Trading volumes on NZX’s markets rebounded last month as debt securities continued to drive new sales this year and the average daily value traded climbed to its highest level since September last year.

Total trades climbed 9% to 52,949 in July from the same month a year earlier, the bourse operator said in its August operational report. It slipped 7% to 50,359 in July. The average daily value traded was $109 million, the highest in 11 months, but still down 11% from August 2008. The total value traded was down 10% to $2.3 billion.

Companies have raised some $3.02 billion so far this year from selling debt securities that trade on the NZDX market. Total trades on the NZDX market surged 34% to 4,558 from the August last year. Still, the value traded declined 14% to $143 million.

Firms have been keen to raise capital this year as the global economic slump and credit crunch have forced companies to cut debt and boost their balance sheets to remain solvent. This year some $5.02 billion has been raised, a 91% increase on the same period a year earlier.

The value of securities traded on the NZSX sank 10% to $2.2 billion, while the total number of trades climbed 7% to 48,145. Total trades on the NZAX, the market for smaller cap and start-up companies, was unchanged at 246, while the value slumped 20% to $1 million.

Shares of NZX last traded at $7.60 yesterday, and have surged 57% this year, making it the second-most successful company on its own bourse.

Businesswire.co.nz

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