NZX trading volume rises for second month

Tuesday 7th July 2009

Trading volumes on NZX’s markets rose for a second month in June, led by a surge in trade in debt securities after a bumper crop of new sales so far in 2009.

Total trades edged up 1% to 51,067 last month, after rising 7% in May, NZX said in its June Operating Metrics release. The value of trade slipped 12% to $2.27 billion.

Companies have raised $2.87 billion so far this year by selling debt securities that trade on the NZDX market, including $261.8 million in June. Total trades on the NZDX market jumped 49% to 3,833, making up for a 2% decline in volumes on the NZSX market to 47,028.

Sales of debt this year have been almost double equity sales as companies tapped demand from investors for higher fixed yields as the recession weighed on stocks and deposit rates followed the central bank’s official cash rate lower.

Equity raisings amounted to $1.69 billion this year, including $342 million last month.

On the NZAX market for smaller cap and start-up companies, total trades dropped 29% to 206, while the value traded jumped tumbled 47% to $600,000.

Shares of NZX fell 0.7% to $7.25.

Businesswire.co.nz

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