NZX trading volumes slip in July

Tuesday 4th August 2009

Trading volumes on NZX’s markets fell for the first month in three in July, led by a decline in shares traded, while the volumes of trading in debt securities advanced.

Total trades fell 7% to 50,359 last month, NZX said in its latest monthly release. It has renamed the report to include statistics on energy markets and its Agri-business sector, which includes the Agrifax data and various rural publications. The value of trading fell 18% to $2.29 billion, exceeding the 12% drop in June.Trading on the main NZSX equities market fell 21% to $2.8 billion, while the volume of trades slipped 11% to 45,508.

Still, the decline belies a revival in equities in the second half of the month, which pushed the NZX 50 Index up 11%, with the benchmark reaching a 10-month high 3089 today.Trading on the NZAX market for smaller companies and start-ups sank 50% to $900,000 last month while the volume of trading fell 11% to 254.

On the NZDX market for debt securities, the value of trading climbed 14% to $205 million, while total trades jumped 49% to 4,597. Total capital raised across NZX Markets year to date was a record $5.02 billion, about twice the amount raised in the same period last year.

Helping spur capital raising this year, companies sold bonds to tap investor demand for higher yields as deposit rates fell, while share sales were fueled by discounted offers from issuers such as Fisher & Paykel Appliances and Nuplex Industries, which were forced to strengthen their balance sheets as sales weakened and debt rose.

NZX has expanded its range of businesses to include the M-Co spot electricity market and acquired a range of agricultural media and data assets, betting on strong growth opportunities in New Zealand’s biggest export sector.

On the NZX Energy Markets, there were 125 energy hedge trades valued at $4.15 million in July. The NZX Agrifax Dairy Index fell 31% to 1020 and the Agrifax Log Price Index fell 1.1% to 72.

NZX shares last traded at $7.75.

Businesswire.co.nz

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